VB posts big loss...

[TBM-Legend]

A day after Qantas more than doubled profits to $249 million, the airline formerly known as Virgin Blue reported a full-year loss of $68 million for the year to June, compared with a $21 million profit a year earlier.


Read more: Virgin Australia sinks to loss, eyes rebound (http://www.smh.com.au/business/earnings-season/virgin-australia-sinks-to-loss-eyes-rebound-20110825-1jazb.html#ixzz1W1WT2Sbz)

[aroniyang]

shareholders don't seem to mind, price up 15% today.

[ThePaperBoy]

A $30-80 million loss has been expected since about April, so no surprise. July's figures were positive and I expect FY11/12 should be kind unless some disaster strikes again.

Althought, the end of the world isn't expected until the end of 2012, so that will affect the following year's annual results.

[The Bunglerat]

...What PaperBoy said. Whilst it's not great news, again it comes as no surprise. However, I take heart from the fact that we're in very good hands under JB's stewardship, & I'm confident about the future of VA once we get through the other side of this difficult time. Of course, if it was still the previous management regime in charge, I wouldn't be as optimistic. I, for one, am very glad that's not the case.

[UPPERLOBE]

And The Bunglerat's reply just about sums up the engagement chasm between QF & VA.

[howyoulikethat]

Talk about sinkin ships........maybe it is time for a little nasi goreng!!!

[7378FE]

$68 million loss is probably now well on the way to being wiped out with the relaunch of the Velocity Frequent Flyer program.

A lot of very frequent QF PAX have defected today to VA, enticed by the status match on offer, also rumor is that VA has managed to grab accounts from QF of some very big spenders, BHP is one of these, there are about 8 others (as of today) of similar size moving to VA. :ok:

JB's game change is now showing positive results. :D

Question is will the J class cabin on the 737's be big enough for all this extra demand?

More A330's on the triangle maybe........?

[TBM-Legend]

[QUOTE][/QUOTEQantas Leads in Domestic Airline Satisfaction

Roy Morgan Research
A total of 84% of domestic Qantas customers were ‘very’ or ‘fairly’ satisfied for the 12 months to June 2011, with Virgin Australia slightly behind at 80%, according to the latest Roy Morgan Airline Customer Satisfaction Report.

Customer satisfaction for Qantaslink was 81%, with Regional Express at 76%, just above the industry average of 75%. Jetstar’s satisfaction remained steady at 68%, while Tiger continued to decline to an all time low of 43%.


Satisfaction with Domestic Airlines used in last 12 months


Source: Roy Morgan Single Source, July 2009 – June 2011. Total using domestic airline in last 12 months n=7,099. N.B. ‘Total Industry’ average also includes other domestic airlines not shown. “% satisfied” is the proportion of all customers who are “Very” or “Fairly” satisfied with that Airline (on a five point scale).


Jane Ianniello, Roy Morgan Research International Director of Tourism, Travel & Leisure, says:

“Qantas now has a clear lead over Virgin Australia in terms of domestic airline satisfaction. Both leisure and business customers are giving Qantas a higher satisfaction rating.

“It is interesting to note the continuing decline in the satisfaction for Tiger Airways even before the suspension of Tiger Airways flights in July.”

[Artificial Horizon]

So add this to the fact that Air New Zealand has also just posted a much bigger than expected LOSS and it would seem the marriage between VB and Air NZ is a marriage NOT made in heaven.

[TBM-Legend]

Air NZ
Air NZ says in full year to June results released this morning, the 12 months was split between brilliant and disastrous - with a $112 million profit booked in the fist six months, and a $37 million losses posted in the second.

“Natural disasters and sustained high fuel prices dramatically altered what was shaping to be a very positive full year result,” chairman John Palmer says.

Chief executive Rob Fyfe says long-haul routes have been responsible for weekly losses exceeding $1 million since January, partly due to the high New Zealand dollar.

“International markets remain volatile and this has an impact on the demand for New Zealand as a destination,” Mr Fyfe says.

Briefing notes supplied with the results describe the turbulence in the international financial environment as "concerning".

The high dollar appears to have also caused the airline to book a $95 million net loss from foreign exchange hedging.

Gee Fyfe and AJ must be using the same line.....:confused:

[GAFA]

And don't forget the floods, cyclone, earthquake and res system meltdown cost the company $90 million.

[ButFli]

And don't forget the floods, cyclone, earthquake and res system meltdown cost the company $90 million.

Those are all things that Qantas had to deal with (replacing reservation system failure with QF32 engine failure). Yet somehow, Qantas still managed a decent profit. Seems like Virgin are too busy playing catchup with Qantas and not enough time making money. They should concentrate on what they do best (moving people for cheap) and leave the complex stuff to the big boys.

[Scamp Damp]

ButFli - you crack me up!

Leave it to the big boys? What Jetstar? Or Jetstar Asia?

[ampclamp]

VA's loss was well flagged some time ago in the forecasts. Ben Sandilands has a good take on the comparison between VA's Int and QF's Int results. More a shot at the way QF presents its accounts than anything, but interesting anyway.
JB had to change the direction of the Virgin group , they were getting hammered by Tiger and JQ at one end and could not compete with QF at the premium end. All power to him for having a go at taking them up market. I hope all goes well for the VA people. I think JB may show what can be done when everyone is pulling at one end of the rope not a continuous tug of war with your staff.

[3 Holer]

Leave it to the big boys? What Jetstar? Or Jetstar Asia?

Now that was funny Scamp Damp.:D:D:D
Best "Friday Joke" for a long while, I shall be smiling all day....thankyou:ok:

[my oleo is extended]

The place obviously needs Brett to come back !!!

[GAFA]

Yes QF were also affected by the same, so if you take those factors out QF would have made more profit but would still be sending more jobs out of Australia and Virgin would be in the black by a small amount and may have increased the number of jobs they plan to add in Australia.

[TBM-Legend]

so what are the numbers employed by VA compared to QF???

[ButFli]

Yes QF were also affected by the same, so if you take those factors out QF would have made more profit but would still be sending more jobs out of Australia and Virgin would be in the black by a small amount and may have increased the number of jobs they plan to add in Australia.And I'm sure

TID Edit

I just earned myself a banning :}

[VH-ABC]

Bye Butfli!!

[hoss58]

As others have mentioned no real surprise about the results. Certainly some work to do but i think in all fairness to JB and his team we need to see how 11/12 financial year pans out. I suspect we will see continual improvement in the coming year and with 800 million in the bank the news is not all bad and they are reasonably well placed at least in the short term.

Also i think it is worth mentioning the only airlines profit VA should concentrate on is VA's. If they get it right and make money then what the others are doing dosen't really matter.

Fly safe

Play hard

Regards Hoss58:ok: