With the
VB share price below 50 cents (after floating at close to $2.40) how low can this share price plummett before the inevitable?
I spoke recently with an analyst with Standard and Poors who by the way give companies their credit ratings worldwide.
He stated that unless
VB cuts something like 35% of its fleet, concentrates on primary trunk routes primarily with a higher yield and/or raise their prices by up to 30% they wont survive.
Also suggested was the idea of dumping the B777's to the USA which would incur losses for a few years that
VB just cant afford.
Those preliminary figures were apparently costed at a jet fuel price of US$95 per barrel and the losses to the USA could skyrocket even further with jet fuel at around US$160 per barrel!
To make matters worse Mr Godfrey recently purchased a large number of shares at around 75 cents per share.
His vote of confidence didnt seem to impress anyone else.
Any takers?