Originally Posted by
Tommy Bahama
Because to fix a problem you have to admit there is one and Virgin never do that. You could also assume both carriers
PR machines would be working flat out trying to work out how to put a positive spin on this so their workers don't get confused.....
Not sure I entirely agree... QF did say there was a problem... (yes, of course there was a tax advantage in it for them but any public company wouldn't pass over that if it was available) such as profitability of certain business units and value of depreciated assets massively overvalued due to currency fluctuations since they were purchased (747s). They made the write down and they enacted changes to reduce costs, etc. and within 18 months they are massively profitable (yes, the fuel price had some impact but it was available to all carriers)... the difference is at VA, they say there's a problem, then borrow more money, in the last case allegedly to pay back borrowed money (and somehow that's going to improve their capital position??? Capital is cash essentially so how does debt do that... anyway) and keep saying after every loss (5 years now) the well worn line of profit being 'just around the corner'. Hate Joyce or love him, the media has had it out for him and they have fawned all over the mail room boy and I'm sorry but AJ has delivered, MRB has not. So, agree, VA don't admit there's a problem but I'm not sure that applies to QF as well.