Virgin looks into Abyss
Debt to Equity is really crappy but at least most of the debt is long term
V Australia is about to operate up to six or 7 very large gas guzzlers to a country that is at the moment in a pilotless uncontrolled spin and has to find a pilot to even find the rudder pedal, let alone push it.
The Aussie dollar is not that sick but no where near as strong as it has been. This has a detrimental effect on US denominated debt and US outbound tourism. It may help US inbound tourism except that many have just lost their house and are not taking an overseas holiday this year.
Domestic yields, as always are under pressure and the BIG Q is about to operate its brand new A380 in direct opposition to V Australia, yield management for V Aust will be a huge challenge!
There is no parent anymore, with deep pockets other than Richard and I think his hands wont be able to reach the bottom of his.
Bottom line is, something or someone will fall by the wayside. It wont be the BIG Q, AirNZ are government backed, Tiger is SQ and SQ Gov owned. This leaves
VB, V Aust. and United. One or all of this three is going to hit the wall......Any Bets?