Tigerair chief Merren McArthur warns on aviation industry’s lack of diversity

[PPRuNeUser0198]

Originally Posted by mattyj

Is this the same company that twice went to its institutional investors looking for more cash in the last 18 months?!

There is nothing wrong with raising capital from investors. It is much cheaper to do that than to borrow more money at market rates. And I am sure you know the significant capital investments VA had to make in order to transform its business into where it is today. You can't rely on waiting for free cash flow reserves to build up sufficiently to use for investing activities. VA also needs to keep cash reserves for when the hard times hit, so it does not collapse the moment headwinds occur.

The business is generating positive free cash flow. It is paying down debt, and its debt-to-equity ratio is within tolerence. This is what matters.