1. Posepone V-Australia launch
2. Stop delivery of more E-jets
3. Reduce domestic capacity
4. Further cost reduction measures
And most importantly
5. Senior management
1. Is being done by Boeing Engineers. At least postponed by a month at this stage and possibly longer.
2. They are taking the EJets they are contractually obliged to take and have postponed future orders.
3. Domestic capacity has been reduced by deploying EJets on certain routes and moving frames to PB to expand international routes. Poly Blue made 9.8 million from one route last year so this is worth doing.
4. They announced cost cutting measures, the biggest one being a 2 year pay freeze for head office staff.
5. Why change senior management. The airline made $150 million last financial year (then reduced this by $60 million for V Australia) and over $200 million the year before.
VB is still making money the question is have they over borrowed? Is the debt to equity ratio something that shareholders should be/are concerned about? Are these loans over a long enough period that refinancing won't be an issue? Are airlines something that investors are happy to be lending there money to?