Virgin goes to the market, CEO to leave in 2010.

[limelight]

Virgin to raise cash, CEO to leave in 2010.

see Business Spectator - News - Virgin Blue announces $231m capital raising, sees $165m FY09 loss (http://www.businessspectator.com.au/bs.nsf/Article/Virgin-Blue-in-trading-halt-pd20090727-UBUS5?OpenDocument)

[Ozdork]

:ok:Good riddence I say. When is his farewell? And which phonebox is it being held in?

[Zoomy]

Actually I think he has done remarkably well. From start up to today the airline has indeed grown and he has not had it all his way.

My honest opinion, now I will sit back and watch. :oh:

[SilverSleuth]

This is the news staff having been hoping for, for the last 4 years. The morale of pilots especially, directly relating to BG decisions is quite remarkable. Good news. Chow !!:ok:

[The Green Goblin]

I heard a little rumour from the Townsville refuelers twin brothers cousin in Gove that Darth received an offer from Virgin to apply for the top job :)

Interesting twist to say the least!

Apparently Vstar is his latest ploy using e jets to build a low low cost offshoot of Virgin, leaving virgin to pursue higher yield markets on the city to city route network :)

[hongkongfooey]

Actually I think he has done remarkably well. From start up to today the airline has indeed grown and he has not had it all his way.


Yes, poor old BG, must have been tough what with AN going tits up just after he started :hmm:

[tasdevil.f27]

I wonder if the new man or woman will make some decisions on the future direction of VB, either low cost or full service airline? Trying to be both isn't really working. PE seems to be a waste on most sectors, always empty red seats.

By Brett, you will not be missed :mad:

[rescue 1]

Mr Borgehetti would be in the running...as is AD.

[What The]

Its trans Pacific carrier, V Australia, is expected to make a trading loss of between $30 and $350 million for the 2009 financial year

There's a nice range for you +/- $320,000,000.

:ugh:

[Sir Donald]

Why leave at the ''height'' of his career midway through the expansion(battle)of the Pacific?

[Qantas 787]

Pardon my ignorance but why all the animosity towards Godfrey? Can VBer's shed some light on this.

[airtags]

787 - Dixon was the same although never pretended to befriend or listen to staff before screwing them over - Godfrey pretends befriends then guts with no concious.

refer appendix B - new issue announcement for quotation of additional securities lodged with ASIC 16 May 2009

7,703,605 options issued pursuant to Senior Executive Option Plan which at notional determinant of (a very generous )$0.28 .... each of the 10 Execs headed by "brett" reward themselves each getting a (notional) $227,000 bonus at a nil issue price. All unconditional!

Item 6 - purpose of issue states "to motivate and retain the participating executives"

All this at time when share prices are diabolical, debt is soaring and what little assets there are are being put in hock to pay interest of dud deals, fuel hedges that were way too late, and stupid forex punts that a drunk in a casino wouldn't make....oh forgot to mention at the same time drivers, cc and staff are taking pay hits with forced leave, LWOP etc. ..although if the flawed, poorly scoped, Delta JV were to get up, the exec's bonuses would have had a healthy multiplier.

BG while doing some good things - has had an overt history of B.S. statements that typically does the opposite. (apart from the way staff are treated)

For example, refer the VBA profit forecast a few months ago - QF downgrades to circa $100 mill, the bum is falling out of the global aviation landscape and Godfrey spruiks VBA will be in the black to the tune of $200 - 250 mill........) - even the speculative suitors at Credit Suisse ran from that one!!!!!

He constantly justifies his previous indiscretion by blaming everyone and everything - even counting a B.S. claim against Air Services on the balance sheet and wanting to redefine international accounting protocols to make the off balance sheet liabilities look like another company's problem. Even in the equity raising announcement he unashamedly wants the money to cut debt and help liquidity.

With the failure of finding a sugar daddy with patient money, and then still crashing ahead to continue swamping the business in further debt only to be followed with the annual result going south to the tune of minus 160 (with seriously more to come), the evac/eject alarm was sounding loud and clear.

VB needs sound direction and hopefully a focus on being what it was a very successful domestic LCC. BG's departure may herald a new CEO who can clean out the myopic management tier and get the airline back on track. It is a tough brief but watch the shares gain height if the right appointment is made.

Sadly though, those like BG that have and still are taking VB way too close to the terrain will be the first to reap the rewards of any recovery arising from his eventual departure.
...............drivers, cc and staff however will be lucky to get a fraction of CPI but they'll have to slog harder for it.

AT

[Timber]

VB must be close to complete desperation to put this deal in the market; just to raise $230 million..??? Al it seems to do is fund the losses of Vaus, and not for a long time either, and hope for the best! Scary....., very scary.

The discount may offer some short term protection to falling share prices, but you wonder whether it is big enough...?

[Getzo]

Timber, right on the money. Scary that VB are trying to raise an amount that may be a lot less than the loss they make, another Godfrey move!!!!:ugh:

86'er

[ozangel]

The whole thing stinks. BG's balls must be like allens marshmallows. Lucky for the staff nonetheless.

It's as if the captain of the titanic opened the throttles, aimed for the biggest burg he could find, and then just when everyone thought he'd gone to the loo, dissappears out a back door and into an escape raft with all the fine china.


To top it off, his senior crew attempt to justify the situation with 'He was a good captain and we were lucky to have him'....


I have a feeling that those vampires (hr folk) at QF and TT are sharpening their pencils and practicing their indignant frowns as we speak...

[Thumbs up]

How is that two investment banks have seen this as a deal worth participating in ?
Do they see this as highly speculative or does it have legs, either way I would have thought there would have been much better ways to spend my clients money.
I reckon they have a better chance of a return by thowing a couple of Billion at Eddie with a pat on the back all is forgiven and a warm seat at the head of the ABC table.
Some posting here have much more knowledge of the financial circles and practices than us mere pilots ,so whats their thinking?

[ANstar]

Timber, right on the money. Scary that VB are trying to raise an amount that may be a lot less than the loss they make, another Godfrey move

I believe in addiotna to the equity raising another $200M will be raised from sale and lease backs of some aircraft.

[The Truckie]

I heard they are trying to sell their 777's to then lease back but can't get any buyers cause they got the model with the small cargo door and therefore can't take containers. If this is true who chose that mod they should be made to take permanent leave without pay!

[ditch handle]

Quote-

"I heard they are trying to sell their 777's to then lease back but can't get any buyers cause they got the model with the small cargo door and therefore can't take containers. If this is true who chose that mod they should be made to take permanent leave without pay!"

_________

It was obviously the same bean counter who ticked the boxes for the QFs original A330s.:rolleyes:

At least we know where he ended up after being sacked for that stroke of genius........

[Maloo]

So will the new CEO increase fares to a sustainable level so VB & VA can survive and prosper? Along with the crew getting a better deal?

[nitpicker330]

Rubbish, ALL 777-300ER's have the same size fwd and aft cargo doors.

[Capt Kremin]

A quick glance at several B777 on airliners.net seems to confirm that the V-OZ rear cargo doors are indeed the same size as anyone elses. I wonder who fooled the SMH?

[cnsnz]

According to the report they have current cash reserves of $475Million so I wouldnt say they were burning cash at a horrifying rate.
A capital raising of $230 m would put them in a reasonably comfortable position considering they intend to break even in the current climate by June 2010.

[who_cares]

Didn't they intend on making a 100 mill profit this year

[PA 804]

VH-VPF has a rear cargo door about 70% the width of that on VT-JEL. Count the windows and spaces above the doors.

VH-VPF at KPAE Paine Field (http://paineairport.com/kpae2241.htm)

VT-JEL at KPAE Paine Field (http://paineairport.com/kpae2254.htm)

PA 804

[rmm]

Rubbish, ALL 777-300ER's have the same size fwd and aft cargo doors.

So what's the optional aft large cargo door mentioned in this Boeing document?
It lists ground clearances on page 8 and gives dimensions for 2 different cargo doors for the 777-300ER

http://www.boeing.com/commercial/airports/acaps/777rsec2.pdf

[SOPS]

so now I am really curious...why offer two different rear cargo doors. What is the advantage/disadvatage of each?

[Zoomy]

So the CEO decides to leave/retire, and all mondays experts bag him, and yet noone it seems can tell us what would make the airline more profitable or what they would do different.:ouch:

I challenge any pilot to give up their lifestyle and do his job full time.:ooh:

For all the crap you have to put up with, just stop a minute and think of all the crap you don't.;)

[Qantas 787]

Thanks for the explanation airbags:ok:

[airtags]

sorry Buzzzzy - you've been relegated to the role of the wing man!

Strong governance, responsible arrest of debt , focus on core biz as a LCCC, canx the high risk stuff, rip out Premium Y and get the lost 12 seats back and definately no more costly Branson B.S.

In fact strategy is to buy out his 25 and release the Virgin licencing - & repaint the tail

followed quickly by a new Board with brains and balls and an ability to understand the need to read what's on and off the balance sheet.......and start looking at building the NAV.

......what's the mantra.........
.................screw it let's do it!

[Mr. Hat]

I disagree with those that say "VB is what it is today because it started just as Ansett was collapsing". If that was so why did the other established jet operators of the time not grow into 40-50% of market share? Sure it helped but it was only a matter of time before the inefficient practices at Ansett would have resulted in an eventual collapse.

Whilst he hasn't done everything right I think he's done a pretty darn good job of growing it from what it was 9 years ago. Compare him to Dixon and I think its fair to say that BG wins hands down.

[farrari]

Only one VA 777 has the NORMAL FULL size REAR cargo door the other two have the :eek: SMALLER size.

[kotoyebe]

It was obviously the same bean counter who ticked the boxes for the QFs original A330s.

At least we know where he ended up after being sacked for that stroke of genius........

I distinctly remember sitting in a hall full of VERY disengaged QF employees listening to Dixon at a roadshow, when the question of the original QF A330's was put to him. His response was that "it was the right decision at the time". Which was Dixon speak for "f**k off employee, management knows best, give me more bonus now!".

I don't believe that the person responsible for that decision was sacked. In true QF style he would have been promoted and given a bonus. I get the feeling from this thread that it's pretty much the same at VB!

[rammel]

Not all 777-300's have the same size rear door. SQ and I think EK have the large cargo door, and from what I gather from here VA do not. So I would say it is one of many options you can have. Perhaps the guys from VA wanted to save money, but didn't realise that it may cost them lost revenue in the future.

[VBPCGUY]

VH-VOZ is fitted with the larger rear hold door the VP registered B77W's are fitted with a smaller one and cannot take cargo pallets.

[Section28- BE]

Victor Oscar Zulu being the initial one, that was "Leased"- the following ones were financed from memory, I think there was an announcement of some sort at the time..........

Quote/Search below ex the CASA website- my bolding and red:

Search results

The following 4 aircraft match your search criteria.
Note: A record on the Civil Aircraft Register does not constitute proof of ownership for either the certificate of registration holder or property interest holders.
VH VOZ
Power Driven Aeroplane with tricycle - retractable landing gear
2 Turbofan engines
Manufacturer: THE BOEING COMPANY
Model: 777-3ZGER
Serial number: 35302
Aircraft first registered in Australia: 05 January 2009
Full Registration
Registration holder as of 28 January 2009
PELICAN 35302, INC.
10250 Constellation Boulevard
Suite 3400
LOS ANGELES CALIFORNIA 90067-6234
UNITED STATES OF AMERICA
Registered operator as of 28 January 2009
VIRGIN BLUE INTERNATIONAL AIRLINES PTY LTD
PO Box 1034
SPRING HILL QLD 4004
AUSTRALIA
VH VPD
Power Driven Aeroplane with tricycle - retractable landing gear
2 Turbofan engines
Manufacturer: THE BOEING COMPANY
Model: 777-3ZGER
Serial number: 37938
Aircraft first registered in Australia: 05 January 2009
Full Registration
Registration holder as of 30 January 2009
VB LH 2008 NO. 2 PTY LTD
PO Box 1034
SPRING HILL QLD 4004
AUSTRALIA
Registered operator as of 30 January 2009
VIRGIN BLUE INTERNATIONAL AIRLINES PTY LTD
PO Box 1034
SPRING HILL QLD 4004
AUSTRALIA
VH VPE
Power Driven Aeroplane with tricycle - retractable landing gear
2 Turbofan engines
Manufacturer: THE BOEING COMPANY
Model: 777-3ZGER
Serial number: 37939
Aircraft first registered in Australia: 29 January 2009
Full Registration
Registration holder as of 28 February 2009
VB LH 2008 NO. 2 PTY LTD
PO Box 1034
SPRING HILL QLD 4004
AUSTRALIA
Registered operator as of 28 February 2009
VIRGIN BLUE INTERNATIONAL AIRLINES PTY LTD
PO Box 1034
SPRING HILL QLD 4004
AUSTRALIA
VH VPF
Power Driven Aeroplane with tricycle - retractable landing gear
2 Turbofan engines
Manufacturer: THE BOEING COMPANY
Model: 777-3ZGER
Serial number: 37940
Aircraft first registered in Australia: 24 June 2009
Full Registration
Registration holder as of 24 June 2009
VB LH 2008 NO. 2 PTY LTD
PO Box 1034
SPRING HILL QLD 4004
AUSTRALIA
Registered operator as of 24 June 2009
VIRGIN BLUE INTERNATIONAL AIRLINES PTY LTD
PO Box 1034
SPRING HILL QLD 4004
AUSTRALIA
Rgds
S28-BE

[Tangan]

rip out Premium Y and get the lost 12 seats back

Airtags,
Where do you get your information from??

The VB premium Y seats only occupy the first 3 rows and are configurable as 2 or 3 abreast. In full Y class configuration (3 abreast) the -800 still has a capacity of 180 while the -700 still seats 144.

In premium Y config only 6 seats are "lost" but if those in the remaining 12 seats are paying a premium Y fare the revenue is not.

[airtags]

Tangan
my info is very good & you are right in your description that Premium Y (WC) means minus 6 seats -

.............given however that the Premium seats are under grossly utilised and run empty more often than not, - that means that on peak yeild runs (where there are nil Y seats avail) the revenue leakage is 12 seats.

Internal docs show that the ROI on WC is woeful. Add to that the disproportionate spend on advertising and marketing support and it underscores the folly.

Virgin is a great LCC's and has huge potential in that market segment. Back to core should be the mantra

[CFM56-7]

I would suggest you check your figure's again.

VB burning through more cash then they are raising ??????

Capital raising $ 230 million plus and oversubscribed

VB media release VB short haul 08-09 expecting profit $25 - 30 million

VB long haul loss $30 - $35 million not 350 million

Group operating loss for year $10mill + VA set up, currency, fuel hedge total $165mil

If VB's operating loss was $10 mil and thay have raised $230 +
$495 taking their reserves to over $700 mil I would think things look rosey, but
I might be wrong simple math's

[Tangan]

.............given however that the Premium seats are under grossly utilised and run empty more often than not, - that means that on peak yeild runs (where there are nil Y seats avail) the revenue leakage is 12 seats.

NO, NO, NO, NO, NO.

Airtags, On peak demand sectors the three rows of premium Y seats are quickly converted, as required, to 3 abreast and occupied by Y class passengers..... NO seating capacity is lost.

Granted it is not a good look, those rows are the last to be filled with Y class passengers and they do remain empty unless all other seats are occupied.