Bo777 - I think some posters are getting a tad excited with the doom and gloom scenarios they are painting. That said there are a tough couple of years ahead but as the domestic operation seems to be basically holding its own by reducing capacity, the big issue for the group is V Aus. On the one hand it is just about the worst time to start these Pacific services, however one thing that seems to be overlooked is that V really only have to try to grab a relatively small portion of United / QFs market share. Whether they succeed or not remains to be seen - QF may respond by crushing the yield to maintain market share or it may not. There is also word of expanding PB routes into SE Asia via Darwin a la Jetstar - this I guess spreads the risk a bit. I understand DPS is going very strongly (PER up to daily soon) so this might encourage expansion that way.
As for the share price, well that might get some big player interested and that changes everything. I doubt that it will go completely insolvent but if V Aus becomes the black hole of legend then we may see the whole show wind up less than half the size it is now.
Remember this is Pprune Dununda - the Jerry Springer show of internet aviation.
