Originally Posted by
xray one
and put £350/400 million per year in the treasuries coffers.
However can VA anticipate this level of profit, to put that much corporation tax into the UK government Treasury, given that
Originally Posted by fruitbat
“Virgin accumulated £211m of losses last decade for a negative 0.1% operating margin. British Airways made £11 billion at a 10% margin”
Originally Posted by fruitbat
Those losses despite being centred at what is probably the best O&D hub in the world for business travel demand.
As I understand it, Virgin Atlantic may do fine financially each year, but under the "Starbucks Method" of accounting, whatever level of profit they anticipate in any year is then sucked out beyond the reach of Her Majesty's Government by Virgin Group Holdings Ltd, based beyond the taxman's reach in an obscure accountant's office in the British Virgin Islands (not one of VA's Caribbean destinations; largest aircraft serving there is an ATR), which invoices for the "Use of Brand", which appears in Virgin Atlantic's accounts as a "marketing expense".