Virgin blue's future
Join Date: Oct 2007
Location: victoria
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Don't sell them @ $2.20We are not brokers and should not give advice on buying shares; however if you own them look at QF share price & performance and work out if DJ has had its value increase over the same period. Becasue the stock is controlled by 3 shareholders (90%) institutional support is low. Toll will sell there stake very soon (or a big % of it) so the next buyer will pay more than the current price. It's going up but when and by how much is for someone else to call.
Good luck!
Join Date: Jun 2007
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I'd be surprised if Toll sold so many shares that they would dilute their current level of control of the airline.
I foresee DJ being an important cog in Toll Freight nationally and internationally.
Mike
I foresee DJ being an important cog in Toll Freight nationally and internationally.
Mike
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EK have brought shareholdings in several Aussie Companies lately including catering and Toll Airservices, Maybe they will be interested in VB shares ?
Would provide them with AU domestic carrier and like SQ a stepping stone for flights to the US direct from AUS?
Would provide them with AU domestic carrier and like SQ a stepping stone for flights to the US direct from AUS?
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Dj Agm Today
EK, like SQ have both publicly said they're not interested in DJ. Why would they when Toll hasn't delared there hand.
mmciau maeks a valid point regarding the freight; however Toll has already announced that they have secured the belly space available for there freight operations. Does that include International with V Australia? Im not sure, but I reckon they would have and are probably waiting for the US to rubber stamp the agreement. V will quickly become DJ when/if SQ decide to sell there VS stake.
DJ AGM today - Let's wait & see if they turn on a light....
mmciau maeks a valid point regarding the freight; however Toll has already announced that they have secured the belly space available for there freight operations. Does that include International with V Australia? Im not sure, but I reckon they would have and are probably waiting for the US to rubber stamp the agreement. V will quickly become DJ when/if SQ decide to sell there VS stake.
DJ AGM today - Let's wait & see if they turn on a light....
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Page 1 of 3
Chairman’s Address
Overview of the 2007 Financial Year
(for the period 1 July 2006 to 30 June 2007)
Good morning Ladies and Gentlemen thank you for your time and interest today.
During the 2006-2007 year Virgin Blue recorded a strong performance for its
shareholders as the company continued to move towards its vision as a New World
Carrier airline group.
All three of our airlines Virgin Blue, Pacific Blue and Polynesian Blue returned positive
results, contributing to a net profit after tax of $216 million for the year ended 30 June,
2007, a record result for Virgin Blue Holdings Ltd.
This was a 92.9% improvement on the previous year, achieved in an environment of
determined competition, continuing record fuel prices and despite $23 million of pre-tax
non-recurring expenses. Net profit before these expenses was $232 million.
Our revenue at $2.17 billion increased 16.3%. Yield increased by 8.1% to 11.57 cents.
The average price paid for jet fuel oil again increased by 7.9% to over $81 a barrel,
which increased our total fuel bill for the year to $489million,and increase of $38million
on a production adjusted basis for the year.
The Company has continued to implement its hedging policy and for FY08 has in place
currency hedging covering 77% of requirements and fuel hedging covering 55% of fuel
requirements.
During the period under review Virgin Blue incurred non-recurring pre-tax costs
associated with preparations for our long haul international airline
V Australia, the purchase of 20 Embraer E-Jets for our Australia domestic growth project
and a write-off related to cancellation of a reservations project.
Capital expenditure for the year totalled $317 million, which included the purchase of
three new Boeing 737-800 aircraft, and advance payments on a number of future aircraft
deliveries.
Our average days operating cash reserves improved from 124 to 139 as at 30 June
2007. Our cash balances increased $131 million to $704 million.
The Directors declared a fully franked ordinary dividend of 2 cents per share, (payable to
all shareholders recorded on the register at 5pm (AEST) on 5 September, 2007),
bringing the full-year dividend to 4 cents per share.
Looking forward, the next 12 months will be a period of exciting growth for Virgin Blue as
we extend our operations across Australia, New Zealand and the South Pacific andPage 2 of 3
commence long haul international flying with the launch of V Australia in the fourth
quarter of 2008.
Next month we enter the New Zealand domestic market for the first time, flying
New Zealand’s main trunk routes between Auckland, Christchurch and Wellington, this is
an exceptional opportunity for us and demonstrates the array of profitable growth
avenues available to us.
Yesterday the first of our new Embraer aircraft entered service in Australia, it is a 78 seat
Embraer E-170 and its first flight was Brisbane to Cairns. As the next 19 of these planes
enter the country in rapid succession, we will open a new era in Australian aviation,
expanding our Australian domestic network, and introducing superior services and
product to existing and new regional routes. We anticipate a high level of market
support for the Embraer services including from the Government and business sectors.
Both the new Embraer and Boeing 737 aircraft will be fitted with adaptable
configurations to allow maximum flexibility from single class to high density seating.
Across our airline businesses Virgin Blue will continue to introduce product innovations
designed to appeal to corporate travellers. Brett will introduce an exciting enhancement
shortly and we are confident of continued strong revenue and yield improvement over
the short to medium term.
Next year Virgin Blue will launch V Australia’s first Boeing 777-300ER international
flights to and from the USA, adding a fourth airline and long haul international feed to the
current network of Virgin Blue, Pacific Blue and Polynesian Blue. We expect the V
Australia operations to be highly successful with an excellent service offering.
Your Directors believe that significant value creation will be derived other from key
strategies which are already well progressed;
The velocity frequent flyer program has exceeded our expectations with membership of
over 1 million and an established network of partners, this program has the potential
over time to contribute significantly to earnings and cash flows.
In addition, the continued development, in conjunction with Toll, of our air freight
operations also represents a significant opportunity for additional earnings.
In its eighth year, the Company has never been better placed to drive further
shareholder value..
Financial performance is strong, our outlook is positive and among the world’s airlines,
Virgin Blue’s margins now rank among the top few most profitable carriers in the world.
On behalf of the Board I would like to congratulate the management and team members
of Virgin Blue on their achievements, which are the result of creativity, commitment to
their low cost carrier business principles and adherence to the New World Carrier
strategic direction.
Page 3 of 3
I would now like to call on Brett Godfrey, Virgin Blue’s Chief Executive Officer to
elaborate on the past twelve months, and importantly the outlook for the Company, in
greater detail.
Thank you
Chairman’s Address
Overview of the 2007 Financial Year
(for the period 1 July 2006 to 30 June 2007)
Good morning Ladies and Gentlemen thank you for your time and interest today.
During the 2006-2007 year Virgin Blue recorded a strong performance for its
shareholders as the company continued to move towards its vision as a New World
Carrier airline group.
All three of our airlines Virgin Blue, Pacific Blue and Polynesian Blue returned positive
results, contributing to a net profit after tax of $216 million for the year ended 30 June,
2007, a record result for Virgin Blue Holdings Ltd.
This was a 92.9% improvement on the previous year, achieved in an environment of
determined competition, continuing record fuel prices and despite $23 million of pre-tax
non-recurring expenses. Net profit before these expenses was $232 million.
Our revenue at $2.17 billion increased 16.3%. Yield increased by 8.1% to 11.57 cents.
The average price paid for jet fuel oil again increased by 7.9% to over $81 a barrel,
which increased our total fuel bill for the year to $489million,and increase of $38million
on a production adjusted basis for the year.
The Company has continued to implement its hedging policy and for FY08 has in place
currency hedging covering 77% of requirements and fuel hedging covering 55% of fuel
requirements.
During the period under review Virgin Blue incurred non-recurring pre-tax costs
associated with preparations for our long haul international airline
V Australia, the purchase of 20 Embraer E-Jets for our Australia domestic growth project
and a write-off related to cancellation of a reservations project.
Capital expenditure for the year totalled $317 million, which included the purchase of
three new Boeing 737-800 aircraft, and advance payments on a number of future aircraft
deliveries.
Our average days operating cash reserves improved from 124 to 139 as at 30 June
2007. Our cash balances increased $131 million to $704 million.
The Directors declared a fully franked ordinary dividend of 2 cents per share, (payable to
all shareholders recorded on the register at 5pm (AEST) on 5 September, 2007),
bringing the full-year dividend to 4 cents per share.
Looking forward, the next 12 months will be a period of exciting growth for Virgin Blue as
we extend our operations across Australia, New Zealand and the South Pacific andPage 2 of 3
commence long haul international flying with the launch of V Australia in the fourth
quarter of 2008.
Next month we enter the New Zealand domestic market for the first time, flying
New Zealand’s main trunk routes between Auckland, Christchurch and Wellington, this is
an exceptional opportunity for us and demonstrates the array of profitable growth
avenues available to us.
Yesterday the first of our new Embraer aircraft entered service in Australia, it is a 78 seat
Embraer E-170 and its first flight was Brisbane to Cairns. As the next 19 of these planes
enter the country in rapid succession, we will open a new era in Australian aviation,
expanding our Australian domestic network, and introducing superior services and
product to existing and new regional routes. We anticipate a high level of market
support for the Embraer services including from the Government and business sectors.
Both the new Embraer and Boeing 737 aircraft will be fitted with adaptable
configurations to allow maximum flexibility from single class to high density seating.
Across our airline businesses Virgin Blue will continue to introduce product innovations
designed to appeal to corporate travellers. Brett will introduce an exciting enhancement
shortly and we are confident of continued strong revenue and yield improvement over
the short to medium term.
Next year Virgin Blue will launch V Australia’s first Boeing 777-300ER international
flights to and from the USA, adding a fourth airline and long haul international feed to the
current network of Virgin Blue, Pacific Blue and Polynesian Blue. We expect the V
Australia operations to be highly successful with an excellent service offering.
Your Directors believe that significant value creation will be derived other from key
strategies which are already well progressed;
The velocity frequent flyer program has exceeded our expectations with membership of
over 1 million and an established network of partners, this program has the potential
over time to contribute significantly to earnings and cash flows.
In addition, the continued development, in conjunction with Toll, of our air freight
operations also represents a significant opportunity for additional earnings.
In its eighth year, the Company has never been better placed to drive further
shareholder value..
Financial performance is strong, our outlook is positive and among the world’s airlines,
Virgin Blue’s margins now rank among the top few most profitable carriers in the world.
On behalf of the Board I would like to congratulate the management and team members
of Virgin Blue on their achievements, which are the result of creativity, commitment to
their low cost carrier business principles and adherence to the New World Carrier
strategic direction.
Page 3 of 3
I would now like to call on Brett Godfrey, Virgin Blue’s Chief Executive Officer to
elaborate on the past twelve months, and importantly the outlook for the Company, in
greater detail.
Thank you
