PPRuNe Forums - View Single Post - Virgin share price drops 17 percent
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Old 20th May 2013, 00:44
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The Green Goblin
 
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Shareholders and deep pocket?

Singapore is in decline. We know it. They know it. As Asia develops there is more competition for 'hubbing' in cheaper places. Great product, great airline, but shortly irrelevant which is why they keep on putting money into overseas ventures.

Air New Zealand is a basket case. If it wasn't for the tax payers purse, they would have closed down long ago. While the product is great, the airline proud, and the staff loyal, it's always going to be a niche market spoon fed from the public purse - a bit like Tasmania. Same strategy as Singapore, invest in other markets and hopefully remain relevant.

Etihad.

Well the dynamics are the same as Emirates, there is only room in any market for two main players.

Expect to see a merger of two of the middle east carriers in the next few years. Where that leaves VA? Who knows. I'm guessing Qatar and Etihad will join forces to take on Emirates.

So yes, Virgin does have some interesting shareholders, but it is akin to tossing a bag of chips into a playground of thirty kids. Not everyone is going to get a taste, and there are going to be some tantrums!

Last edited by The Green Goblin; 20th May 2013 at 00:45.
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