Depreciation is the biggest killer. Fleet transition charges 20million last FY and similar figure this year.
Virgin owns the 737s so not sure how that works as the rental expense is dropping but how they are being charged for them is anyone’s guess. Nothing on the financials in regards to Tiger owning them.
As every half passes, depreciation is increasing, engineering increasing, fuel bill increasing wage bill increasing and margin is continuing to go backwards.
Margin was increasing right up until they sent the 737 across. They had the right mix about 3/4 years ago with a sole Airbus fleet with Fuel rising but revenue/yield/margin climbing which covered the fuel problems. Then some idiot floated the 737 idea.