PPRuNe Forums - View Single Post - Virgin puts brakes on VARA
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Old 1st Mar 2014, 19:55
  #18 (permalink)  
KRUSTY 34
 
Join Date: Jan 2006
Location: Sydney Australia
Posts: 2,306
Received 9 Likes on 4 Posts
Sorry about the Skywest spelling Chadzat, damn ipad spell check. KRUSTY too lazy to edit.

All new start ups require time and expense, but the ATR'S aren't printing money, and will not do so until the net is cast wider. The challenge for VA is just how much cash they will burn in the meantime. VA have a history of sticking by their decisions though, just look at how much money was thrown at VOZ in the first 4 years! The decisions however are becoming more complex considering the diverse nature we now see in ownership. But I diverge.

The crux of my post was to highlight the changeing nature of the VA/SkyWest (there's that spellcheck again) "partnership". If Skywest didn't bite off more than they could chew, then why was VA forced to loan the carrier $100 mil? If the loan, and the subsequent takerover didn't happen, would Skywest still be operating in their own right today?

As for REX losing out? If the planned expansion of both the ATR and TT operations go ahead with hopefully a move towards profitability, REX will certainly lose out, but probably not in the way you have suggested!

Last edited by KRUSTY 34; 2nd Mar 2014 at 10:07.
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