Okie - a very realistic thread but the point was put by the Stock Brokers when asked would they invest in
VB with Ansett II up and running.
The resounding "NO" speaks a thousand words.
Now here is my stance:
Virgin Blue and Ansett will as someone said be left to fight over the crumbs as Qantas does dominate the skies and always will.
Both are companies with great staff working for them and I believe there should be jobs for all - but only realistically speaking.
Without terminal space
VB is stuffed - dont even consider a float - the brokers were unanimous on that.
Besides,the float is the result of Richard Branson in a desperate financial position which we wont go denying at the cost of sounding stupid with the facts looking us in the face.
What is left people??
If ANsett Mk II starts up then the very fine profit margin of
VB will deteriorate to the extent that cash flow will be inhibited and either many routes will have to be dropped or many staff laid off.
If ANsett doesn't provide terminal space then ditto in the long term.
The solution???
What about ANsett and
VB doing a tie-up - granting terminal space and striking a commercial agreement to the mutual benefit of both.
It certainly beats Qantas in a lot of areas - especially operating costs 25% cheaper for the 2 minor airlines.
If a full service airline can offer that then Qantas will have no choice but to either match the cost structure of
VB/ANsett or lose alot of market share.
Virgin Blue here to stay????
Maybe - but only if alot of concessions are made and terminal access is granted in Sydney/Melbourne etc.