OPINION: The quick return of Virgin Australia to the ASX is another indicator for a soft landing in the economy as whole
Yet, there is no despondency in these surveys either. Many bosses are also expanding, hiring and diversifying – more confident about the response of their own companies and domestic economies even as they reflect on the wider global macro gloom.on sales of electronics, outdoor and driving products suggest the pandemic is now in the rear-view mirror of middle Australia. Confidence surveys are up, even from depressed levels.
Busy airports after border closures have been the most obvious signs of reopening and living with COVID-19. Relations between airlines and investors are chequered. Airlines have high fixed costs and fight to fill seats to cover them, yet constantly attract wannabe owners. As Warren Buffett noted, when airline economics meet airline managers, the economics win. Virgin lived that out, going under in April 2020 with debts of $7 billion after years of fare-slashing market share wars with Qantas.
A fresh ASX float and call on the public’s money will have to overcome many doubters. The airline has not had that long a record in real post-pandemic trading conditions yet. It was bought at a huge discount, which makes it look good. Yet, a revived listing would be another sign that the pandemic age has ended.
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