History repeats?
I assume that VA is not going to spend the vast sum that Ansett did with the 2000 Olympics sponsorship, but I can't help but wonder how the V8 Supercars race in Dubai fits their competition strategy, (given that they don't even fly to that port) or how tangible any financial gain would be.
Do they really think that spending a few $million on this event is money well spent or just "small change"? They have just recently had a handout of more cash from their owners, you would think a bit more due diligence and good sense would prevail. Business isn't that rosy is it, that they can spend up at this point in time?
Moody?s places Virgin Australia on review for credit downgrade | Australian Aviation
Source: Australian Aviation magazine April 2016
VA CEO Borghetti recently was quoted in the Australian Financial Review as saying: "It's really now focusing on the capital structure and the efficiency of the business through reductions in sustainable costs such as simplification of the fleet and other business,"
How strategic is VA's thinking, that it might even give Qantas and Emirates a small boost if consumers aren't paying total attention to the advertising (who does?).
I believe that no one wants Virgin to be less than it is, we all want to see it be successful in it's own right, it's good for the Australian economy and Australian jobs, as Ansett was in its time. I hate the thought that they would ever be in the financial position of having to totally sell out to SQ, EY or maybe even one of the Chinese carriers!
Call me a cynic (ok, I am a cynic
), but I'm sure all in all, the Virgin board, its executives, the business partners and other hangers on will all enjoy the perks of the corporate box for their week of motor racing. The Ansett leeches surely enjoyed the Olympic Committee's hospitality back in their day.
As they say..... "It's only a rort if you're not in it"
