Toll grits teeth as VB shares head south
Please don't correct Casper
Last week we went over and past a Tiger 4 thousand below us Pth to Mel and judging by how many people boarded their aircraft on the stairs in the rain our NG was making more money then them!
If this is the logic of their company let them keep it!!!!!!!!!!!!!!
Last week we went over and past a Tiger 4 thousand below us Pth to Mel and judging by how many people boarded their aircraft on the stairs in the rain our NG was making more money then them!
If this is the logic of their company let them keep it!!!!!!!!!!!!!!
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Maybe Tiger could offer them $120mill in a previously agreed deal and then pull out in spectacular fashion by publically ripping up a bogus cheque..................
I am sure Gary Toomey would come out of hiding for that one.
I am sure Gary Toomey would come out of hiding for that one.
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Hey OZ Biggles IF your NG wagon was 4000ft above Tiger going Perth Melbourne they were heavier than you. It would not take a brain surgeon to figure more weight more punters ?
VB is following Ansett they went the RJs ?
VB is following Ansett they went the RJs ?
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In my current job I spend at least twice a week flying on Virgin Blue and have found even when the flights are full they always seem to fly high ie F380-410. I've spoken to a few crews and they all so they same, the NG has no problems getting up to those levels when flying along the east coast carrying 6 - 8t of fuel with a full pax load.
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The thread has lost it's way; read the title!
No news yet regarding the cuts DJ was intimating last week in the press after QF announced some of theirs. The upside of it is that most airlines share prices have gone up after these announcements have been made.
No news yet regarding the cuts DJ was intimating last week in the press after QF announced some of theirs. The upside of it is that most airlines share prices have gone up after these announcements have been made.
I think they're all standing in a circle holding on to each others.
Seriously, start a separate thread and try to prove each other wrong with trivial matters somewhere else.
Boring!
Seriously, start a separate thread and try to prove each other wrong with trivial matters somewhere else.
Boring!
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Metro man
Sorry mate, for the A320's in OZ, its 39,800...operating limitation.
Cost index is from 0-999.
The opt alt on the PROG page depends on wind, tropopause, temp, weight and sector length. Compared to the NG's, the 320 will generally have an opt alot lower for a given weight. Considering such factors as turbulence and sched keeping, its a bit of a stretch using CRZ levels as an indicator of how well an airline is going.
Now back to the VB share price...60cents...not good
Sorry mate, for the A320's in OZ, its 39,800...operating limitation.
Cost index is from 0-999.
The opt alt on the PROG page depends on wind, tropopause, temp, weight and sector length. Compared to the NG's, the 320 will generally have an opt alot lower for a given weight. Considering such factors as turbulence and sched keeping, its a bit of a stretch using CRZ levels as an indicator of how well an airline is going.
Now back to the VB share price...60cents...not good
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The answer is clear:
Virgin Blue 'could fold over fuel costs'
June 5, 2008 - 2:14PM
Advertisement
Virgin Blue Holdings Ltd faces financial oblivion if jet fuel remains at record prices and the carrier cannot raise fares to cover the increase, an analysis by broker JP Morgan says.
"If jet fuel were to stay at current levels for several years and Virgin Blue could not significantly increase fares, it would not survive," JP Morgan analysts Matthew Crowe and Russell Crichton-Browne wrote in a note.
In some relief to airlines, crude oil for July delivery fell more than $US2 to $US122.30 s barrel overnight.
JP Morgan said if high fuel prices persisted, an equity injection would not help keep Virgin Blue airborne.
"Equity injections would be futile as prices would not cover costs."
The two analysts said that even with $1 billion in equity Virgin Blue would become insolvent under this scenario .
"A five per cent fare rise is not enough to cover fuel costs," they said.
"A $500 million equity injection would buy some time in the hope that fuel costs fall, but if fuel did not fall Virgin Blue, on our analysis, would eventually become insolvent despite the equity injection."
The analysts said two back-to-back five per cent fare rises would save the company and reduce the need for an equity injection.
However, they said the resulting growth profile would not be very attractive, with fiscal 2015 estimated earnings still below fiscal 2007.
"Virgin Blue needs to raise fares to cover the cost of fuel, rather than raise equity.
"To create a profile of strong earnings growth at the current oil price, we estimate Virgin Blue needs to raise fares by 10 per cent and then raise fares 0.5 per cent per annum."
The analysts reduced their December 2008 price target to 85 cents "reflecting cuts to our earnings estimates and current fuel price sentiment".
"Risks to this price target include fuel costs, capacity and further loss-making expansions."
Virgin Blue last lifted its airfares on May 6.
One-way fares on Virgin Blue domestic flights increased by between $5 and $10, based on flight sector length, and its Pacific Blue branded trans-Tasman and short-haul international fares increased by between $5 and $15.
At 1353 Thursday, Virgin Blue was up 3.5 cents, or 5.83 per cent, to 63.5 cents.
Virgin Blue 'could fold over fuel costs'
June 5, 2008 - 2:14PM
Advertisement
Virgin Blue Holdings Ltd faces financial oblivion if jet fuel remains at record prices and the carrier cannot raise fares to cover the increase, an analysis by broker JP Morgan says.
"If jet fuel were to stay at current levels for several years and Virgin Blue could not significantly increase fares, it would not survive," JP Morgan analysts Matthew Crowe and Russell Crichton-Browne wrote in a note.
In some relief to airlines, crude oil for July delivery fell more than $US2 to $US122.30 s barrel overnight.
JP Morgan said if high fuel prices persisted, an equity injection would not help keep Virgin Blue airborne.
"Equity injections would be futile as prices would not cover costs."
The two analysts said that even with $1 billion in equity Virgin Blue would become insolvent under this scenario .
"A five per cent fare rise is not enough to cover fuel costs," they said.
"A $500 million equity injection would buy some time in the hope that fuel costs fall, but if fuel did not fall Virgin Blue, on our analysis, would eventually become insolvent despite the equity injection."
The analysts said two back-to-back five per cent fare rises would save the company and reduce the need for an equity injection.
However, they said the resulting growth profile would not be very attractive, with fiscal 2015 estimated earnings still below fiscal 2007.
"Virgin Blue needs to raise fares to cover the cost of fuel, rather than raise equity.
"To create a profile of strong earnings growth at the current oil price, we estimate Virgin Blue needs to raise fares by 10 per cent and then raise fares 0.5 per cent per annum."
The analysts reduced their December 2008 price target to 85 cents "reflecting cuts to our earnings estimates and current fuel price sentiment".
"Risks to this price target include fuel costs, capacity and further loss-making expansions."
Virgin Blue last lifted its airfares on May 6.
One-way fares on Virgin Blue domestic flights increased by between $5 and $10, based on flight sector length, and its Pacific Blue branded trans-Tasman and short-haul international fares increased by between $5 and $15.
At 1353 Thursday, Virgin Blue was up 3.5 cents, or 5.83 per cent, to 63.5 cents.
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Was the Virgin meeting today, or tommorow
What routes would you guys predict to recieve the Chop??
Mabye:
SYD-OOL-SYD (reduce)
BNE-MKY
MEL-HBA
SYD-HBA
Apparently DJ are weak in Hobat
What routes would you guys predict to recieve the Chop??
Mabye:
SYD-OOL-SYD (reduce)
BNE-MKY
MEL-HBA
SYD-HBA
Apparently DJ are weak in Hobat
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heavens to Betsy
Oh how awful. I've just read the article. Tell me, is there any airline that wouldn't go broke if everything stayed the same as the analysts claim? Or are they heaven forbid sending a signal to the Virgins that GOD would like them to go up by 10% because otherwise they might end up full of HIS customers.
Look I can't fly a plane, unlike some of my family, but I know a try on when I see one.
Look I can't fly a plane, unlike some of my family, but I know a try on when I see one.
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maybe the time is coming when governments need to drop some of the taxes and fees associated with the industry... or it'll just go away and the travelling public will have to get the train or a bus.
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i seriously doubt a virgin company would ever go tits up.......
not too good for the brand, surely Sir Richard would step in and clean up the mess that this company seems to be in...
i could be wrong, but has a virgin assoc company ever fell over?
not too good for the brand, surely Sir Richard would step in and clean up the mess that this company seems to be in...
i could be wrong, but has a virgin assoc company ever fell over?
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At the end of the day these so called analysts could come up with what ever out come they so desire. Most seem to work on the pretext the operation will not shift to deflect the economic impact of the external influences, in this case oil/fuel .I am sure the LCC's must feel the strain to a greater degree than DJ but do we hear speculation on their demise with similar fervour .I sometimes wonder about the motivation of these so called analysts.
Yep lots,
Virgin Bride, Virgin Cola, Virgin Sun(holiday charter airline), Tried superannuation for a while in the U.K as well as home loans and they don't seem to exist any more. But compared to the strength of the main brand they do seem insignificant
Virgin Bride, Virgin Cola, Virgin Sun(holiday charter airline), Tried superannuation for a while in the U.K as well as home loans and they don't seem to exist any more. But compared to the strength of the main brand they do seem insignificant