Originally Posted by
Tom Bradys Cat
Indigo is officially out.Administrators have announced Bain Capital and Cyrus Capital Partners as the final two bidders left in the race to buy Virgin Australia.
The two US-based private equity firms are “well-funded” and have “deep aviation experience”, according to Deloitte administrator Vaughan Strawbridge.
There appeared to have been a lot of outside influence and inside (union) influence that didn’t want the Indigo purchase to happen. The influencers want a full service airline, and for nothing to change, except their profitability. Good luck with that approach, I’m sure the third time is the charm. From a union/labor relations standpoint, I really cannot blame them. Indigo surely would have tried their standard terror negotiations with the employees that weren’t outsourced; although Kenny mentioned previously that Australian labor laws are much more protective. But in a world market overly saturated with seats, every analyst seems to be pointing to a pricing war even with a large reduction in fleets. So if cost is king in a recession, what kind of airline do you want to work for?