Virgin In Trading Halt
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Very true Going Boeing.
Spot on Titan.
Last but not least
Great concept. So when do we get the service? Cause we sure are paying fella!
Instead the taxpayer hands out for the travel of various retired politicians and/or $900 hand outs.
In the past 10 to 15 years the facilities (airports) have gotten worse, the service (ATC/flightwatch ect) has gotten worse. The levies fees and taxes have increased. The airfares have come down. The salaries and conditions haven't kept pace with the rest of the community. No worries. Now both major carriers are losing millions at an unprecedented rate. Do you think there might be only so much you can squeeze out of this aviation orange or what? Perhaps the taxpayer would prefer to pay for a 5 or 10 thousand people on the dole!
Wod have you been overseas?
Spot on Titan.
Last but not least
User pays for services
I, for one, don't want to see a taxpayer handout to airlines, which is the inference of your post.
In the past 10 to 15 years the facilities (airports) have gotten worse, the service (ATC/flightwatch ect) has gotten worse. The levies fees and taxes have increased. The airfares have come down. The salaries and conditions haven't kept pace with the rest of the community. No worries. Now both major carriers are losing millions at an unprecedented rate. Do you think there might be only so much you can squeeze out of this aviation orange or what? Perhaps the taxpayer would prefer to pay for a 5 or 10 thousand people on the dole!
Wod have you been overseas?
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This thread is way off topic and VBA released its announcement to the ASX about the trading halt. If you have any actual info on VBA doing a cap raising then share it otherwise mods this thread should be locked.
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If you have any actual info on VBA doing a cap raising then share it otherwise mods this thread should be locked.
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Well the mkt rumour was that vba did the rounds of the insto's and didnt get much interest ie they'd be funding losses not a growth option.That is what some analysts believe to be the current trading conditions.
The rumour printed in the press was quite detailed so I do think there was likely some element of truth in it.
The statement to the asx was very carefully worded so as not to shut the door on a cap raising sometime in the future.
I wish them well,
its a bugger of a business to be in at an awful time.Hate to see qan / jetstar / tiger with the spoils.Lots of good friends over at vba.
The rumour printed in the press was quite detailed so I do think there was likely some element of truth in it.
The statement to the asx was very carefully worded so as not to shut the door on a cap raising sometime in the future.
I wish them well,
its a bugger of a business to be in at an awful time.Hate to see qan / jetstar / tiger with the spoils.Lots of good friends over at vba.
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Virgin In Trading Halt
Their 4th 777 VH-VPF had it's first flight yesterday. This will not be a leased aircraft, so presumably a reasonable cash deposit plus 12yr finance required. Could there be a problem with the financing of this aircraft?
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Adele Ferguson | July 20, 2009
Article from: The Australian
VIRGIN Blue is courting a Middle East airline to become a "cornerstone" investor as it pursues options to recapitalise the business in the face of increased competition and the severe industry downturn.
Speculation is building that Virgin Blue, Australia's No2 airline, will be forced to seek additional capital either through an equity raising or by inviting new investors on to its register.
It is believed the company has held talks with one Middle East airline, possibly its new code-share partner Emirates, which is owned by the government of Dubai. Other potential solutions to its capital needs could include a partnership with private equity firms or with Air New Zealand.
Virgin Blue has firmly denied plans to merge or tie up with Air New Zealand, although a spokeswoman did not respond to calls to comment on a potential alliance with a Middle East airline.
Some analysts believe Virgin Blue does not need to raise extra funds in the medium term. Responding to reports of a planned $400 million rights issue, Virgin Blue last week said "the board has not approved any such transaction".
But the airline confirmed that "given the prevailing macro-economic conditions" it "assesses capital management initiatives as appropriate".
British Airways said on Friday it would raise pound stg. 600m ($1.2 billion) "to ensure it has strong liquidity consistent with the current difficult trading conditions".
The key to getting any recapitalisation deal across the line is British billionaire Richard Branson, the Virgin Blue founder who retains 25.5 per cent of the airline. It is understood that Sir Richard has not yet been convinced of the need to do a deal.
Any potential equity injection into Virgin Blue could dilute his stake, unless he opts to take up his full entitlement under a rights issue.
Virgin Blue is losing money on its new V Australia service across the Pacific, with its New Zealand business hit by the decision by the Qantas-owned Jetstar to start domestic flights there last month.
The airline, which is being hurt like the rest of the industry by the financial crisis, swine flu and rising oil prices, is expected to post a loss when its full-year results are handed down next month.
Article from: The Australian
VIRGIN Blue is courting a Middle East airline to become a "cornerstone" investor as it pursues options to recapitalise the business in the face of increased competition and the severe industry downturn.
Speculation is building that Virgin Blue, Australia's No2 airline, will be forced to seek additional capital either through an equity raising or by inviting new investors on to its register.
It is believed the company has held talks with one Middle East airline, possibly its new code-share partner Emirates, which is owned by the government of Dubai. Other potential solutions to its capital needs could include a partnership with private equity firms or with Air New Zealand.
Virgin Blue has firmly denied plans to merge or tie up with Air New Zealand, although a spokeswoman did not respond to calls to comment on a potential alliance with a Middle East airline.
Some analysts believe Virgin Blue does not need to raise extra funds in the medium term. Responding to reports of a planned $400 million rights issue, Virgin Blue last week said "the board has not approved any such transaction".
But the airline confirmed that "given the prevailing macro-economic conditions" it "assesses capital management initiatives as appropriate".
British Airways said on Friday it would raise pound stg. 600m ($1.2 billion) "to ensure it has strong liquidity consistent with the current difficult trading conditions".
The key to getting any recapitalisation deal across the line is British billionaire Richard Branson, the Virgin Blue founder who retains 25.5 per cent of the airline. It is understood that Sir Richard has not yet been convinced of the need to do a deal.
Any potential equity injection into Virgin Blue could dilute his stake, unless he opts to take up his full entitlement under a rights issue.
Virgin Blue is losing money on its new V Australia service across the Pacific, with its New Zealand business hit by the decision by the Qantas-owned Jetstar to start domestic flights there last month.
The airline, which is being hurt like the rest of the industry by the financial crisis, swine flu and rising oil prices, is expected to post a loss when its full-year results are handed down next month.
V
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Same paper different article..
Virgin goes to Gulf for cash | The Australian
VIRGIN Blue is believed to be in talks with a Middle East airline about securing a cornerstone investor as it looks to raise cash to recapitalise the business.
The key to getting any deal across the line is British billionaire Richard Branson. As a 25.5 per cent shareholder of Virgin Blue, he calls the shots.
The talk is, Branson needs to be convinced of a deal. He can either sell out to a cornerstone investor or stay in and agree to dilute his shareholding by not taking up his entitlement in a rights issue.
In the past, Branson has not shown any inclination to increase his stake despite the shares falling as low as 17c, nor has he shown any indication of being a willing seller in the recent past.
However, Branson has a history of selling franchises, namely Virgin Records, Virgin Radio and Virgin Mobile, because he still receives revenue from licensing fees. If he decides to sell his Virgin Blue stake -- and by all accounts he has not yet made a decision -- a similar arrangement could be reached with Emirates or another cornerstone investor for ongoing use of the Virgin franchise in Australia.
Right now, investors in Virgin are reluctant to take up a rights issue without the lure of a new cornerstone investor, but with Branson on the register Virgin needs to mindful of not breaching a 49per cent cap on foreign ownership. If the airline becomes majority foreign-owned, it will be unable to fly on its recently launched route between Australia and the US.
Put bluntly, Virgin has a lousy share register composition and its pitch for more cash is more about helping its operational businesses -- some of which are making loss -- rather than paying off debt, and its major shareholder, the omnipotent and brash Branson, is hardly a drawcard for any would-be backer.
If Virgin can pull off a deal with Emirates to take a stake, convince its key shareholder, Branson, to stump up more cash or dilute or sell his shareholding, then institutional investors and retail investors will come to the party and support an equity issue.
Such a move would not only strengthen the company operationally at a time when it is bleeding cash from its new international V Australia business, it would give it tentacles around the world similar to those of Qantas.
If it doesn't, it will need to find some other form of magic to prevent it from hitting really bad times in the next couple of years.
To put it in perspective, Virgin Blue listed on the ASX in December 2003 at $2.25 and reached a high of $2.80 in February 2007. It is currently trading at 30c a share, putting it on a market cap of $315 million. It is expected to report a loss in its full-year results to be released on August 19.
Virgin Blue did not respond to questions about Branson or speculated talks with a Middle-East carrier about taking a cornerstone investment.
In the past few weeks Virgin Blue has honed its international presence with announcements of a code sharing deal with Emirates and a trans-Pacific joint venture with Delta, the world's biggest airline.
Merrill Lynch analyst Kevin O'Connor said: "We believe this will help stem losses for V Australia and, along with the recent Emirates code share, it lifts Virgin Blue's competitive offering against Qantas, making it an increasingly viable competitor for high-yielding corporate accounts.
There is little doubt the country's second biggest airline needs to do something soon. Besides losing money from V Australia, its Australia-US airline, it is also losing money on its New Zealand business, particularly after the decision by the Qantas-owned Jetstar to start domestic flights there last month.
This, coupled with one of the toughest environments in aviation history, including a global financial crisis, swine flu and rising oil prices, means Virgin has other demons to wrestle with.
The latest round of price warfare on the domestic routes as new entrants slash and burn the prices to gain market share, is making some of Virgin Blue's domestic routes look sick.
To make ends meet, Virgin Blue has been cutting capacity, reducing staff and selling and leasing back aircraft and property to meet its short-term capital requirements.
This is not sustainable in the long term. International airfares to some destinations have almost halved in the past five years, with the global economic slowdown slashing corporate air travel and forcing the major carriers into a low-cost showdown.
A return flight from Sydney to Los Angeles can be booked for as little as $886. VAustralia is currently offering return flights from $945. It was not so long ago that return flights to LA were in excess of $1700.
Domestic travel prices have also been slashed as major airlines have engaged in a price war. In the past few weeks Jetstar has offered one-way tickets from Sydney to Melbourne at $19 to stare down new budget rival Tiger Airways.
Virgin goes to Gulf for cash | The Australian
VIRGIN Blue is believed to be in talks with a Middle East airline about securing a cornerstone investor as it looks to raise cash to recapitalise the business.
The key to getting any deal across the line is British billionaire Richard Branson. As a 25.5 per cent shareholder of Virgin Blue, he calls the shots.
The talk is, Branson needs to be convinced of a deal. He can either sell out to a cornerstone investor or stay in and agree to dilute his shareholding by not taking up his entitlement in a rights issue.
In the past, Branson has not shown any inclination to increase his stake despite the shares falling as low as 17c, nor has he shown any indication of being a willing seller in the recent past.
However, Branson has a history of selling franchises, namely Virgin Records, Virgin Radio and Virgin Mobile, because he still receives revenue from licensing fees. If he decides to sell his Virgin Blue stake -- and by all accounts he has not yet made a decision -- a similar arrangement could be reached with Emirates or another cornerstone investor for ongoing use of the Virgin franchise in Australia.
Right now, investors in Virgin are reluctant to take up a rights issue without the lure of a new cornerstone investor, but with Branson on the register Virgin needs to mindful of not breaching a 49per cent cap on foreign ownership. If the airline becomes majority foreign-owned, it will be unable to fly on its recently launched route between Australia and the US.
Put bluntly, Virgin has a lousy share register composition and its pitch for more cash is more about helping its operational businesses -- some of which are making loss -- rather than paying off debt, and its major shareholder, the omnipotent and brash Branson, is hardly a drawcard for any would-be backer.
If Virgin can pull off a deal with Emirates to take a stake, convince its key shareholder, Branson, to stump up more cash or dilute or sell his shareholding, then institutional investors and retail investors will come to the party and support an equity issue.
Such a move would not only strengthen the company operationally at a time when it is bleeding cash from its new international V Australia business, it would give it tentacles around the world similar to those of Qantas.
If it doesn't, it will need to find some other form of magic to prevent it from hitting really bad times in the next couple of years.
To put it in perspective, Virgin Blue listed on the ASX in December 2003 at $2.25 and reached a high of $2.80 in February 2007. It is currently trading at 30c a share, putting it on a market cap of $315 million. It is expected to report a loss in its full-year results to be released on August 19.
Virgin Blue did not respond to questions about Branson or speculated talks with a Middle-East carrier about taking a cornerstone investment.
In the past few weeks Virgin Blue has honed its international presence with announcements of a code sharing deal with Emirates and a trans-Pacific joint venture with Delta, the world's biggest airline.
Merrill Lynch analyst Kevin O'Connor said: "We believe this will help stem losses for V Australia and, along with the recent Emirates code share, it lifts Virgin Blue's competitive offering against Qantas, making it an increasingly viable competitor for high-yielding corporate accounts.
There is little doubt the country's second biggest airline needs to do something soon. Besides losing money from V Australia, its Australia-US airline, it is also losing money on its New Zealand business, particularly after the decision by the Qantas-owned Jetstar to start domestic flights there last month.
This, coupled with one of the toughest environments in aviation history, including a global financial crisis, swine flu and rising oil prices, means Virgin has other demons to wrestle with.
The latest round of price warfare on the domestic routes as new entrants slash and burn the prices to gain market share, is making some of Virgin Blue's domestic routes look sick.
To make ends meet, Virgin Blue has been cutting capacity, reducing staff and selling and leasing back aircraft and property to meet its short-term capital requirements.
This is not sustainable in the long term. International airfares to some destinations have almost halved in the past five years, with the global economic slowdown slashing corporate air travel and forcing the major carriers into a low-cost showdown.
A return flight from Sydney to Los Angeles can be booked for as little as $886. VAustralia is currently offering return flights from $945. It was not so long ago that return flights to LA were in excess of $1700.
Domestic travel prices have also been slashed as major airlines have engaged in a price war. In the past few weeks Jetstar has offered one-way tickets from Sydney to Melbourne at $19 to stare down new budget rival Tiger Airways.
Sprucegoose
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Singapore?
But they don't fly SY-ML, they fly to Geelong!
In the past few weeks Jetstar has offered one-way tickets from Sydney to Melbourne at $19
short flights long nights
and just who is Tiger going to "root"?
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Big stuff happening/being released to the public over the next 24/48 hours. It possibly have to do with ownership... be very interesting... i think it had something to do with the halt from last week.
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Other than the CC EBA being put up for a vote for the third time it has been very quite in the office.
Hopefully any new owners will be prepared to pay their staff better.
Hopefully any new owners will be prepared to pay their staff better.
short flights long nights
Could it be about this?
Virgin Blue May Seek Middle East Investor, Australian Reports - Bloomberg.com
Virgin Blue May Seek Middle East Investor, Australian Reports - Bloomberg.com
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Could be SOPS, who is still unknown? or what for that matter, thou only a hand full of departments have been advised internally... of course the pleb staff won't know probably until after the release to the public and the dog down the road.........
gotta love the flair!
gotta love the flair!
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This is a quote from comsec, on the margin lending section of their website....
"Please note that the following securities have been capped at 40% with no further lending permitted:- AV Jennings Ltd (AVJ), Pan Pacific Petroleum NL (PPP) & Virgin Blue Holdings Ltd (VBA)"
"Please note that the following securities have been capped at 40% with no further lending permitted:- AV Jennings Ltd (AVJ), Pan Pacific Petroleum NL (PPP) & Virgin Blue Holdings Ltd (VBA)"
dont think the middle East Airlines will buy into it .
If anything they would start their own airline with their own somewhat lower conditions. A float for 51% of a Middle East carriers new Australian airline would go down really wel with the institutionsl...........
I still think VB will be fine on its own....
If anything they would start their own airline with their own somewhat lower conditions. A float for 51% of a Middle East carriers new Australian airline would go down really wel with the institutionsl...........
I still think VB will be fine on its own....