Virgin Australia

[ABP]

So it seems from several articles, analysts and CEO interviews that Virgin Australia will have one more year of losses before operating in profit from FY2021. Do you reckon these are realistic goals?

Also interesting to hear confirmed reports that Virgin Australia is in talks with Boeing and Airbus for a deal to replace widebodies come 2024. I hear pilot training and take over of the A330 leases is a term. But how will this be funded in such a highly leveraged operation already? Also, will the Alliance Airlines wet lease agreement be terminated at some point in the next couple of years?

It's good to read Paul Scurrah is doing everything he can to turn Virgin Australia's fortunes around. I hope it all works out for a bright future.

[domaus]

ABP, yes true talks have been taking place. Rumour is A350 is a leading contender right now due to efficiencies in training and the aircaft. If the leases of the A330s are gone (part of the plan) then the savings from these gone leases plus the new efficient aircraft will ensure a more reasonable return after set up than the current fleet mix. Watch this space - hopefully announcement this year. They can also sell the four B777s they own to help fund transition costs. An airline of their size, it's likely one aircraft type is the best fit for widebody.

[1A_Please]

ABP, yes true talks have been taking place. Rumour is A350 is a leading contender right now due to efficiencies in training and the aircaft. If the leases of the A330s are gone (part of the plan) then the savings from these gone leases plus the new efficient aircraft will ensure a more reasonable return after set up than the current fleet mix. Watch this space - hopefully announcement this year. They can also sell the four B777s they own to help fund transition costs. An airline of their size, it's likely one aircraft type is the best fit for widebody.
The global WB market is fairly dreadful so it is unlikely the 777s could be sold currently; EK and EY are flooding the market with used 77Ws so there is basically no market. It is likely renegotiating the lease costs of the A330s will result in a total cost of ownership significantly less than replacing both the 777 and A330s with a single type.

[wheels_down]

The A350 is a expensive machine, a few operators have pulled out and went 330neo due to large capex required.

330neo would make AU-US?

If Virgin is sticking to its 50/50 own/lease strategy, would they not be better to just lease the 330s for another decade at what would be a large decrease on the first term.

Otherwise I struggle to see how they could afford a new type until next decade, rather than increasing its lease bill by going A350 which are 30% more to lease.

[coaldemon]

VA can't afford a 50/50 lease buy strategy on the Wide Bodies. They would not want to hand out the cash for PDP's. As for selling the B777's that would hit the Balance sheet due to poor market values Vs Book Values. Both ways not good on the accounting side. As for operating the machines for another 10 years or so that is a way to go but the investment in product will need to be high and the fuel cost will add up as well as the maintenance.

Will be interesting to watch.

[B772]

I suspect it will all depend on the future price of fuel and the competition.

[ABP]

Watch this space! See you all here later...

[MelbourneFlyer]

Maybe Scurrah can hand his B777s down to Tiger, strip out the fancy business class seats, launch Tiger 777s as JQ killers to Asia LOL

[Global Aviator]

Maybe Scurrah can hand his B777s down to Tiger, strip out the fancy business class seats, launch Tiger 777s as JQ killers to Asia LOL

Well Scoot did start with hand me down SQ 777’s.................

[ECAMACTIONSCOMPLETE]

How’s Tiger’s Bali operation going?

[wishiwasupthere]

How’s Tiger’s Bali operation going?

How’s it feel to work harder than Tiger but get paid less?

[ECAMACTIONSCOMPLETE]

Pretty good, thanks for asking

[Blueskymine]

Pretty good, thanks for asking

You’d be the only one.

[morno]

Pretty good, thanks for asking

That’s because you’re just a greasy turd happy to undercut your mates

[thefeatheredone]

Watch this space! See you all here later...

so back on track..... what are we waiting for? Announcement coming? How long are we watching for? Can I go grab a coffee?

[wheels_down]

Well it’s going to be a effort to fund the upcoming MAX order let alone anything else.

Perhaps drop by late this decade

[havick]

Well it’s going to be a effort to fund the upcoming MAX order let alone anything else.

Perhaps drop by late this decade

Shouldn’t be too hard when Boeing ends up offloading the Max’s at Faruk’s bargain basement prices, everything must go!

[wheels_down]

The concern would be is the Dash 10 a lemon also? It’s still in test mode. It doesn’t have MCAS but what else have they dressed it up with? The Dash 9 might have been a safer bet as I understand it does not have MCAS either and is just essentially new engines on a -900ER

Unlike QF, Virgin can pretty much go this entire decade with its current 737 fleet bar about 10.