Sensational-Adelaide.com

Malaysia Airlines will resume flights between Adelaide and Kuala Lumpur early next month.

The second airline to resume passenger services from Adelaide to key Asian markets, Malaysia’s renewed Adelaide link is likely to eventually open a pathway for students and longer-term visitors.

In the short term, fresh markets will be opened for lucrative seafood and other produce exports.

Adelaide Airport confirmed the Malaysia service would start from July 4, arriving at 7am and departing at 9pm, then reverting to a morning departure from August.

Malaysia, which in 2005 was the first international airline to fly into Adelaide’s then-new terminal, is the second international airline to resume flights during the coronavirus pandemic, following Singapore Airlines reopening services this week.

“Malaysia Airlines has been a strong supporter of the Adelaide market for many years. The new service also opens up further opportunities for our exporters who can place freight, such as fresh seafood and produce, in the belly of passenger services to reach key Asian markets,” an Adelaide Airport spokesman said.

Federal Tourism Minister and South Australian Senator Simon Birmingham suggested the passenger flight’s resumption eventually would welcome long-term visitors, creating the potential to bring overseas students back to Australian universities.

“Malaysia Airlines has a long and proud history of flying directly into Adelaide and I am delighted to see them showing such deep commitment to those ties,” he said.

“While international travel restrictions remain an important line of protection for Australia against COVID-19, these flights will be a real boon for our exporters who need to send freight, they will help any returning Australians and may eventually provide a pathway for longer stay visitors who can comply with 14-day quarantine requirements.”

Australia’s borders are closed because of the pandemic and only Australian citizens, residents and immediate family members can enter the country. All arrivals must quarantine for 14 days.

Premiers and chief ministers today will be told at National Cabinet to set a date for when state and territory borders reopen.

Dear...

We have increased the number of destinations that will be covered by our network and the frequencies on some existing services in June and July 2020. You can view our updated flight schedules here. For customers looking to make a new booking, our complimentary rebooking policy gives you the flexibility to make date changes with no fees.

We look forward to welcoming you back on board, and are committed to providing you with the kind of care and service that you expect from Singapore Airlines. In these extraordinary times, we have stepped up our health and safety measures and introduced new steps to ensure your well-being – from before your flight until you arrive at your destination.

Here are some of the key measures that we have taken to keep you safe.

BEFORE YOUR FLIGHT

• Contactless travel
  Use the SingaporeAir mobile app to generate your mobile boarding pass, access our e-Library and explore more features for a contactless journey.

• Stay informed
  Check the latest travel advisories and visit the Covid-19 Information Centre on our website for the latest updates on booking policies and flight schedules.

AT BOARDING

• Your SIA care kit
  You will receive a complimentary kit at boarding, containing a personal face mask, hand sanitiser, and anti-bacterial wipes for your well-being.

DURING YOUR FLIGHT

• Enhanced safety measures
  Our cabin crew wear masks throughout the flight, as well as goggles or eye visors when interacting with passengers. Gloves are also worn during the meal service. They are also trained to help any passengers who feel unwell.

• Cleaner cabin air
  Every aircraft in the Singapore Airlines Group fleet is equipped with HEPA* filters, which keep the cabin air clean and remove up to 99.99% of the microbes in the air. Cabin air is also refreshed every 2-3 minutes throughout the flight.

• Enhanced cleaning
  Common surfaces and areas such as windows, tray tables, handsets, in-flight entertainment screens, lavatories and galleys are wiped down with a strong disinfectant. Headsets, headrest covers, pillow covers, bedsheets, and blankets are replaced after every flight.

• Meal service
  Following regulatory requirements, meal services have been suspended for all flights within Southeast Asia and to China and snack bags will be provided as a replacement. For all other flights, meal services have been simplified. Alcohol offerings have also been adjusted across all classes.

To view a video of our enhanced health and safety measures, click here.

Bain Capital Triumphs in Virgin Australia Bidding War
26 June, 2020

Following a comprehensive sale campaign, Virgin Australia's administrators have chosen Bain Capital as its preferred bidder to put forward to creditors.

Deloitte announced today that the administrators have entered into a sale and implementation agreement with Bain through both its private equity and distressed and special situations funds.

The agreement will result in the sale and recapitalisation of Virgin Australia Holdings and its subsidiary businesses (Virgin Australia Group), which operates the Virgin Australia and Tiger airlines.

Completion of the transaction will occur after the second meeting of creditors, which is currently scheduled to occur before the end of August.

Bain Capital has received necessary regulatory approvals under the Australian government’s foreign investment laws to complete the transaction.

According to Deloitte, Bain’s bid supports Virgin’s current management team led by Paul Scurrah and their improvement plan for the airline.

It also commits to the retention of thousands of jobs, carries forward all travel credits and Velocity Frequent Flyer booked flights, honours all employee entitlements, and provides a “significant injection of capital to see the business recapitalised and well-positioned for the future”.

Travel Weekly

Bain Capital to buy Virgin Australia after shock Cyrus exit
By Glenda Korporaal
Associate Editor (Business)
Robyn Ironside
Aviation Writer
4 minutes ago June 26, 2020

Virgin Australia has been sold to Boston-based private equity fund Bain Capital, with administrators confirming a “sale and implementation deed” had now been signed.

The announcement came hours after the withdrawal of rival bidder Cyrus Capital who said they had decided to pull out “due to a lack of engagement by the administrator”.

Deloitte’s Vaughan Strawbridge who was appointed as administrator to Virgin Australia on April 21 provided few details of the sale agreement in a statement to the ASX.

He said the transaction supported the current management team led by Paul Scurrah and their improvement plan for the airline, and the retention of thousands of jobs.

The deal also carried forward all travel credits and Velocity frequent flyer booked flights, honoured all employee entitlements and provided a significant injection of capital to see the business recapitalised and well positioned for the future.

“This is an important milestone and a significant achievement,” he said.

“Bain Capital has presented a strong and compelling bid for the business that will secure the future of Australia’s second airline, thousands of employees and their families and ensure Australia continues to enjoy the benefits of a competitive aviation sector.”

Mr Strawbridge said no return to shareholders was expected and it was not possible to determine the estimated return to creditors, who are owed $6.8bn.

He also revealed the final offers received from Bain and Cyrus were not the only ones received, with “several proposals” made including one from representatives of the airline’s 6000-plus bondholders.

Despite the claim by Cyrus Mr Strawbridge had failed to return calls or emails after they made their final offer, he said they had been focused on achieving the best possible outcomes for all stakeholders.

“In just over eight weeks, this is a very positive outcome. We have certainly been heartened by the levels of interest shown by parties, despite the prevailing COVID-induced market conditions, how our final two groups have approached their bids, and how support for the business has come from so many quarters,” he said.

“This result could not have been achieved without the support and hard work of the Virgin Australia team, who we have had the privilege of working with over the last eight to nine weeks. We would also like to thank them for their ongoing support and engagement.”

The Transport Workers Union was looking forward to working with Bain but national secretary Michael Kaine said the process still needed major government involvement.

“The Federal Government must stabilise the aviation industry with Aviation Keeper, an extension of support beyond September for all aviation workers,” Mr Kaine said.

“Both Virgin and Qantas need financial assistance, support and direction from the government on weathering the difficult months ahead as air travel limps along.”

New York hedge fund Cyrus has withdrawn its offer for Virgin Australia, leaving the way open for private equity fund Bain to win the battle.

Cyrus said in a statement on Friday that it had decided to withdraw its offer “due to lack of engagement by the administrator”.

The Australian understands Bain Capital is currently meeting with Deloitte to sign a deal for the airline which is expected to be formally announced within hours.

Unions were awaiting confirmation before commenting on the latest twist in the process.

The angry statement by Cyrus was a slap in the face of the administrator Vaughan Strawbridge, who was accused of “not returning calls, emails or meaningfully engaging with Cyrus to progress its offer”.

The statement referred to the “thousands of hours of detailed due diligence, business planning and stakeholder engagement” that had gone into the offer.

Cyrus said it had increased its offer for Virgin on Thursday morning in a “package of value improvements and other compelling measures to increase the value of the transaction, improve the return to unsecured bondholders and deliver more certainty for the administrators”.

But it complained that “this too had receive no response” except an acknowledgment of its receipt.

Cyrus, which has had a long-time link with Richard Branson, said it was withdrawing its offer as of Friday morning.

The move comes after Qantas has announced on Thursday it would cull the jobs of 6000 of its workers.

The Bain consortium has been advised by former Jetstar chief executive Jayne Hrdlicka raising speculation that she could play a role in a Virgin 2.0

The move will come as a disappointment for Virgin’s unions, two of which have publicly backed the Cyrus bid. But the key Transport Workers Union has kept its powder dry, saying it was prepared to back whichever bidder was chosen by the administrator.

Cyrus founder Stephen Freidheim said in the statement that he was “disappointed” that it had “become necessary to withdraw” the company’s offer.

But he said that Cyrus would be willing to re instate its offer “if the administrator agrees to re-engage in good faith, productive discussions with a view to concluding a transaction that will benefit all key stakeholders – employees, customers, Velocity members and bond holders.

“Cyrus firmly believes that the Australian aviation industry has a bright future and would be willing to reinstate our offer,” he said.

But Mr Strawbridge is under heavy pressure to get the deal done as soon as possible given the cash drain on the airline industry.

Qantas chief executive Alan Joyce said Thursday that his airline had a cash burn of some $40 million a week.

Virgin was placed into administration on April 21 with debts of some $7 billion.

The Cyrus withdrawal will mean that Mr Strawbridge will now put a proposal to creditors at their meeting in mid August which will back the Bain bid.

But the move will be treated with some caution by Virgin’s workers as Cyrus was seen as the bidder which would have been the most sympathetic to its staff.

Statement by Cyrus Capital with respect to Virgin Australia

For Immediate Release
26 June 2020

After thousands of hours of detailed due diligence, business planning and stakeholder engagement from Cyrus and its advisers over the past two months, Cyrus has decided to withdraw its offer to acquire Virgin Australia, due to lack of engagement by the Administrator.

On the morning of 22 June 2020, Cyrus presented to the Administrators of Virgin Australia Holdings an offer to acquire the airline, its regional business and the frequent flyer program Velocity, in accordance with the Administrators’ procedures. However, since then, the Administrators have not returned calls, emails, or meaningfully engaged with Cyrus to progress its offer.

On the morning of 25 June 2020, Cyrus submitted a further unsolicited package of value improvements and other compelling measures to increase the value of the transaction, improve the return to unsecured bondholders and deliver more certainty for the Administrators. This too received no response other than an acknowledgment of receipt.

Despite the material improvements put forward, the Administrators have still not engaged with Cyrus on its offer.

As a result, Cyrus has withdrawn its offer today, 26 June 2020.

The effort and expertise invested by Cyrus and its advisers over a very compressed time period, including the close personal involvement of Cyrus’ Founder and Chief Investment Officer, Stephen Freidheim, demonstrates how committed Cyrus is – and remains – to playing a lead role in the future of Virgin Australia.

Cyrus knows what it takes to grow a successful Virgin airline. With a 20-year history of investing in airlines, and its deep understanding of the Virgin culture from twelve years as the controlling shareholder of award-winning U.S. airline Virgin America, Cyrus firmly believes it is the best-qualified party to take Virgin Australia forward to great success – to the benefit of employees, customers, Velocity frequent flyer members and other stakeholders. These qualifications are bolstered by the involvement of former Virgin Group North America CEO Jonathan Peachey as a Senior Adviser to Cyrus.

Working closely with Virgin Australia’s management and other stakeholders culminated in a strong vision and business plan that was overwhelmingly supported by the unions representing the collective heart and soul of Virgin Australia – its employees.

In fact, every major group with a vested stake in Virgin Australia’s future – employees, their union representatives and Virgin Australia management – support Cyrus due to the shared vision, compatibility of working styles and mutual respect earned during our intensive engagement over the past few weeks. This alignment is so critically important to Virgin Australia’s future success.

Cyrus also believes that its business plan, developed on a bottom-up (plane-by-plane and route-by-route) basis with management, best positions Virgin Australia to return to strength during these difficult times. It has been widely reported that after this plan was unveiled two weeks ago, it has been largely adopted by all other potential bidders as well.

“I am disappointed that it has become necessary to withdraw our offer,” commented Stephen Freidheim, Founder and Chief Investment Officer of Cyrus Capital. “Cyrus firmly believes that the Australian aviation industry has a bright future and would be willing to reinstate our offer if the Administrators agree to re-engage in good faith, productive discussions with a view to concluding a transaction that will benefit all key stakeholders – employees, customers, Velocity members and bondholders.”

“It has been a pleasure to get to know Virgin Australia, its talented and enthusiastic management and its dedicated employee union representatives”, commented Jonathan Peachey, Senior Adviser Cyrus Capital. “Cyrus would have brought to Virgin Australia all its experience of launching and supporting the growth of Virgin America in the United States to reinstate Virgin Australia to its rightful position as the best airline in the region.”

The Australian

Adelaide will host the region’s first international aviation conference since the pandemic hit as the industry grapples with the biggest challenges it has faced.
Tourism, hotel, hospitality and associated industries will be watching closely as airline chiefs converge on the Adelaide Convention Centre over August 5-6 for the CAPA Australia Pacific Aviation Summit.
It comes as Qantas lays off 6000 staff and stands down 15,000, while Virgin Australian looks to be sold to US investor Bain Capital.
The event will be a hybrid affair, with the option of tuning in by video or attending in person.
The virtual component will beam in high level speakers from all corners of the globe, in addition to on-site speakers.
The line up includes Virgin Australia chief executive Paul Scurrah, Tourism Australia managing director Phillipa Harrison and Australian Chamber of Tourism executive chair John Hart who will present live in Adelaide, accompanied by international guests Scoot chief Campbell Wilson and Japan Airlines vice chairman Tadashi Fujita.
The event has been warmly welcomed by South Australian and tourism leaders.
South Australian Tourism Commission chief executive Rodney Harrex said it will be a critical forum for the aviation sector to look at the new and evolving aviation landscape.
“It is great news that Adelaide is able to host this hybrid event in partnership with CAPA, and be involved in this important step in the recovery of our sector,” Mr Harrex said.

Adelaide Airport managing director Mark Young said it is exciting news for the industry
“While we may not be able to meet some of you in person as planned, we’re still looking forward to showcasing virtually what South Australia has to offer as well as updating delegates on our terminal expansion project, which continues to take shape despite the current industry challenges,” he said.

CAPA managing director, Derek Sadubin said summit will provide a critical platform to share insights and perspectives on aviation’s road to recovery, not only for Australia Pacific region but also for global aviation.
“It’s clear the fundamental need for reconnection and access to accurate data and the latest insights and trends is stronger than ever,” he said.
“We’ve successfully demonstrated our agility and commitment to our industry and aim to continue this for our Australia Pacific Aviation Summit.
“With the support of our hosts, the Government of South Australia and Adelaide Airport, we are pleased to announce the return of the CAPA Summit and look forward to bringing the industry together at this critical time."

[...]

The line up includes Virgin Australia chief executive Paul Scurrah, Tourism Australia managing director Phillipa Harrison and Australian Chamber of Tourism executive chair John Hart who will present live in Adelaide, accompanied by international guests Scoot chief Campbell Wilson and Japan Airlines vice chairman Tadashi Fujita.

[...]

Virgin Australia: Bain bid ‘blew them out of the water’
By Glenda Korporaal
Associate Editor (Business)
4:03PM June 26, 2020

Bain Capital is going to inject $600m cash into Virgin Australia to help get things up and running as part of a deal struck on Friday to takeover the airline.

While no details of the deal have been released, The Australian understands that Bain will begin to inject capital into the airline from as early as next week as part of the agreement struck with administrator Deloitte’s Vaughan Strawbridge.

Bain is understood to have proposed an initial cash injection of $1.75bn as part of the deal, including $600m to meet travel credits, $600m cash up front, and another $450m to cover employee entitlements.

This will be in addition to taking on other liabilities including aircraft leases.

No details are available on how much the $2bn in unsecured bond holders will get from the deal.

The bond holders lodged their own bid for Virgin this week in a bid to boost their potential payout.

The private equity bidder Bain is believed to have plans to begin laying off Virgin staff in the next few weeks. While it is expected that Virgin will have to cut back staff from its current 9000, expectations are that it will move quickly to take a tough line with the airline’s workers given its cash burn rate.

Virgin’s administrator Mr Strawbridge confirmed to The Australian on Friday that a cash injection from Bain was agreed as part of the deal.

While Mr Strawbridge still insists he has some $100m in cash to continue to run Virgin, this is largely due to a deal with the Australian Taxation Office to hold off paying pay as you go tax until the airline has been sold.

He has made it clear he needs more capital to continue to run the airline until a proposal can be put to a meeting of creditors to be held by August 21.

Bain is not expected to take over the airline legally until September, but it is expected to step up its involvement in the running of the airline from next week.

The reports of job losses of as many as 4000 Virgin staff in the long term come as two of the airlines unions have backed Bain rival Cyrus which withdrew from the bidding war on Friday morning.

Virgin’s employees have been wary of the Bain bid, with some seeing former Jetstar chief executive Jayne Hrdlicka’s involvement as signalling a hard line with staff.

Jobs on the line

Bain Capital has promised to retain as many jobs as possible at Virgin Australia and “re-establish itself as an iconic Australian airline”.

Bain’s Australian-based managing director Mike Murphy confirmed on Friday that it would buy the airline, with a deal signed with administrator Deloitte’s Vaughan Strawbridge.

Bain has not revealed how much it has offered to pay for Virgin, which went into administration on April 21 with debts of some $7bn, but reports are that the Bain Capital bid was significantly higher than the one being put by Cyrus.

“Bain blew them out of the water,” one source told The Australian on Friday.

In a statement issued on Friday, following the withdrawal of New York hedge fund Cyrus from the bidding war, Bain said it was committed to protecting as many Virgin jobs as possible and would fully fund all employee entitlements.

The issue of how many jobs would be retained has been a key issue for Virgin staff at a time when Qantas has just announced the layoffs of some 6000 employees.

Mr Murphy said Bain would also offer those Virgin staff retained involvement in an employee ownership or profit sharing scheme.

Mr Murphy said Bain was giving an “ongoing commitment to invest in regional services.”

He said it would also move for closer integration between Virgin Australia and its Velocity frequent flyer program.

Mr Murphy said Bain was “excited” to have entered into a sale agreement to become the new owner and operator of Virgin.

He said Bain would now “work with stakeholders” and looked forward to “sharing its vision for the future in more detail with Virgin’s employees, unions, and bond holders” as well as government and regulators.

Mr Murphy said Bain’s plans for Virgin would see it “support and celebrate Virgin’s unique culture and protect as many jobs as possible for the short and medium term.”

He said Bain appreciated how difficult the situation had been for Virgin’s staff.

The Bain proposal will retain Virgin’s current chief executive Paul Scurrah as chief executive.

“Paul Scurrah and his leadership team have worked tirelessly during the administration period and are critical to our future,” Mr Murphy said.

“We are determined to see that Australians have access to competitive, viable aviation services for the long term.

“Under our ownership we will strengthen Virgin’s regional services and ensure the airline emerges offering exceptional experiences at great value while continuing to service business travellers, as well as those of us travelling for fun or to visit loved ones.”

Mr Scurrah said he believed that Bain’s proposal “offers the best possible future for Virgin, its employees and customers.”

He said the Bain Capital team had “demonstrated a deep understanding of aviation” and the Virgin culture.

“We are aligned in our vision for Virgin 2.0 and look forward to working with them to secure the airline’s future.”

The Australian

rev wrote: ↑

Sat Jun 27, 2020 7:21 am

A Singapore Airlines flight landed this morning.
There's another flight from Mumbai coming in as well today.

Stefan P wrote: ↑

Sat Jun 27, 2020 2:46 pm

rev wrote: ↑

Sat Jun 27, 2020 7:21 am

A Singapore Airlines flight landed this morning.
There's another flight from Mumbai coming in as well today.

The Singapore flight was the flight from Mumbai. The aircraft flew Mumbai-Singapore-Adelaide.

rev wrote: ↑

Sat Jun 27, 2020 3:24 pm

Stefan P wrote: ↑

Sat Jun 27, 2020 2:46 pm

rev wrote: ↑

Sat Jun 27, 2020 7:21 am

A Singapore Airlines flight landed this morning.
There's another flight from Mumbai coming in as well today.

The Singapore flight was the flight from Mumbai. The aircraft flew Mumbai-Singapore-Adelaide.

Oh right.
I was listening to the radio and they were talking about two flights coming in today, they said one was from Mumbai and Singapore flight had already landed.
Do you know what the second one is meant to be supposedly? Or were they mixed up on the radio? (5AA)