Buy a cheap plane, picking through Virgin’s scraps

A new Boeing 737-800 costs approx. US$82 million but you may be able to pick one up for 15 cents in the dollar.

Perhaps interested buyers could call the Sydney office of Deloittes (the administrators for Virgin Australia) and throw them a $12 million bid or lower?

p.s. it’s abut $200,000 for a new paint job.

Interestingly, in the 2019 Virgin Australia annual report they failed to tell us the amount of planes they operate, let alone list how many are owned or leased.

Although in the financials of the annual report you’ll also find morsels of info such as how they carry non-cancellable leases and on a more sadder note, approx. $200 million in employee long service leave provisions.

Though, I feel there is a chance that Virgin Australia’s livery will still be part of our aviation industry. It will be easier for an acquirer to run with the existing brand, slots, maintenance and broader infrastructure than to have a new carrier start from scratch.

#virgin #airlines #VAH #aircraft #leases

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