Originally Posted by
T-Vasis
Virgin Australia isn't going anywhere. They're cashflow positive. They can service their debts. Cashflow is more important than profit. They're both important - but cashflow rules. They have free cash. So they're not going anywhere. They're holding back capital spend and 'clearing the decks'. They're making a number of strategic decisions that will reshape the carrier - and the carrier will be a different one within the next 12 months - but it will still be here none-the-less. It will be fine. The market can support both.
But... there may be less demand for pilots with any fleet adjustments they make.
EBIT is stil trending in the right direction...
A duopoly always helps. There won't be a repeat of Ansett/Virgin because there is no third carrier lurking out there to steal market share from them. Cashflow will continue to be good and that keeps the banks happy. That's just due to luck, though.