VAH flies into history, taking billions in lost investments with it
Virgin Australia’s VAH code will disappear from the ASX today as the company moves into private ownership under Bain.
![](http://inqld-com-au-develop.go-vip.net/wp-content/uploads/2020/01/johnmccarthy.jpg?resize=96,96&quality=90)
![Virgin creditors have voted voted strongly in favour of the Bain Capital deal for Virgin. (Photo: Array)](http://inqld-com-au-develop.go-vip.net/wp-content/uploads/2020/05/httpwww.abc_.net_.aunewsimage12200992-16x9-700x394-1.jpg?resize=1313,876&quality=90)
Virgin creditors have voted voted strongly in favour of the Bain Capital deal for Virgin. (Photo: Array)
Also consigned to history will be one of Australia’s most expensive and ill-conceived strategies for an airline.
Virgin Australia was a financial disaster and much of it can be attributed to the capacity war former chief executive John Borghetti undertook with Qantas a decade ago.
It lost more than $1 billion in a handful of years and at the end it owed $7 billion to its creditors. Last year it posted a $349 million loss and cut 750 staff so the end was visible.
Its shares tanked and shareholder funds evaporated. It listed at $2 in 2003 and before the plug was pulled earlier this year it was trading at 8 cents, supported by overseas airlines that owned the majority of shares.
Under Borghetti’s control, Virgin lost a total $997.9 million and its share price has lost two-thirds of its value.
The capacity war with Qantas was judged a failure mostly because Qantas was able to restructure and restore its earnings. Virgin didn’t.
COVID-19 may have been the last straw, but Virgin’s continued existence was under threat well before the Wuhan outbreak.