Virgin Blue back in the black
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Virgin Blue back in the black
Virgin Blue Holdings Limited today reported a net profit after tax of $62.5 million for the six months to 31 December 2009, compared to a loss of $101.4 million for the prior corresponding period.
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Still room for imporvement but in a global context not a bad result.
Fly safe and play hard
Hoss58
Fly safe and play hard
Hoss58
Last edited by hoss58; 24th Feb 2010 at 02:20. Reason: My bloody keyboard can't spell
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And to think 12 months ago there were many on here saying Virgin Blue were finished and now they post a higher profit there Qantas with a smaller network and fewer aircraft.
The 50 new 737''s will be fitted with the new interiors (similar to the 777).
The 50 new 737''s will be fitted with the new interiors (similar to the 777).
Following the logic that says a 361 seat 777 commands less pay than a 737NG, How much less will the pilots be paid to fly the larger -900ERs?
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According to Airline Transport World, the Boeing deal isn’t quite compete . . . see bold/italics below (my emphasis).
Virgin Blue celebrates half-year profit with commitment for 50 737s
Airline Transport World
Geoffrey Thomas
Thursday February 25, 2010
Virgin Blue Airlines Group, which comprises Virgin Blue, Pacific Blue and V Australia, signed an in-principle agreement to buy 50 737s after recording a net profit of A$62.5 million ($56.1 million) in the fiscal first half ended Dec. 31, 2009, reversed from a A$101.4 million loss in the year-ago period.
CEO Brett Godfrey told ATWOnline yesterday that the company also will upgrade its premium economy product and introduce a new "economy Lite" class on its 737s with less legroom in an effort to compete with Jetstar Airways and Tiger Airways.
According to the airline, deliveries of the 737s start from 2011 and run for seven years, but Boeing said only that "we look forward to working with Virgin Blue to finalize the order, at which time it will be posted to the Boeing Orders and Deliveries website."
Godfrey told media that while favorable fuel prices certainly contributed to the result, the company posted a 4.5% decrease in CASK excluding fuel through cost-saving initiatives and enhanced productivity across the network. "Any way you cut it, to continue to achieve cost reductions while we continue to grow our business and position it to rapidly and fully exploit any improvement in economic conditions demonstrates. . .the resilience of our model," he said. But he cautioned that the operating environment is "still uncertain" and concerns remain around the pace of the global economic recovery. Still, the company plans to expand.
Virgin Blue's half-year revenue rose 12% to A$1.51 billion. Operating expenses were up 4.5% to A$1.41 billion and yield improved 11.4% to A11.72 cents. The short-haul operation's pre-tax profit was A$108 million, up 126% year-over-year, while V Australia delivered a pre-tax loss of A$39 million, reflecting the difficult long-haul environment and startup costs. On short-haul operations, RPKs lifted 5.7% to 11.2 billion and capacity increased 6.1% to 14 billion ASKs, reducing load factor 0.1 point to 80.1%. V Australia posted 2 billion RPKs, 2.4 billion ASKs and a load factor of 81.1%.
Going forward, Blue said V Australia will be profitable later this year in line with original guidance. The group estimates pre-tax profit (excluding ineffective cash flow hedges and nondesignated derivatives) for the full fiscal year will be A$80-A$110 million.
Airline Transport World
Geoffrey Thomas
Thursday February 25, 2010
Virgin Blue Airlines Group, which comprises Virgin Blue, Pacific Blue and V Australia, signed an in-principle agreement to buy 50 737s after recording a net profit of A$62.5 million ($56.1 million) in the fiscal first half ended Dec. 31, 2009, reversed from a A$101.4 million loss in the year-ago period.
CEO Brett Godfrey told ATWOnline yesterday that the company also will upgrade its premium economy product and introduce a new "economy Lite" class on its 737s with less legroom in an effort to compete with Jetstar Airways and Tiger Airways.
According to the airline, deliveries of the 737s start from 2011 and run for seven years, but Boeing said only that "we look forward to working with Virgin Blue to finalize the order, at which time it will be posted to the Boeing Orders and Deliveries website."
Godfrey told media that while favorable fuel prices certainly contributed to the result, the company posted a 4.5% decrease in CASK excluding fuel through cost-saving initiatives and enhanced productivity across the network. "Any way you cut it, to continue to achieve cost reductions while we continue to grow our business and position it to rapidly and fully exploit any improvement in economic conditions demonstrates. . .the resilience of our model," he said. But he cautioned that the operating environment is "still uncertain" and concerns remain around the pace of the global economic recovery. Still, the company plans to expand.
Virgin Blue's half-year revenue rose 12% to A$1.51 billion. Operating expenses were up 4.5% to A$1.41 billion and yield improved 11.4% to A11.72 cents. The short-haul operation's pre-tax profit was A$108 million, up 126% year-over-year, while V Australia delivered a pre-tax loss of A$39 million, reflecting the difficult long-haul environment and startup costs. On short-haul operations, RPKs lifted 5.7% to 11.2 billion and capacity increased 6.1% to 14 billion ASKs, reducing load factor 0.1 point to 80.1%. V Australia posted 2 billion RPKs, 2.4 billion ASKs and a load factor of 81.1%.
Going forward, Blue said V Australia will be profitable later this year in line with original guidance. The group estimates pre-tax profit (excluding ineffective cash flow hedges and nondesignated derivatives) for the full fiscal year will be A$80-A$110 million.
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Airline Transport World is also reporting a healthy turnaround for Tiger Aviation Group . . .
Airline Transport World
26th February 2010
Tiger Airways and Tiger Airways Australia parent Tiger Aviation Group posted a net profit of S$14.1 million in the fiscal third quarter ended Dec. 31, reversed from a S$7.9 million loss in the year-ago period.
Third-quarter operating profit was S$23.5 million, boosted by a 29% year-over-year increase in revenue to S$139.5 million.
President and CEO Tony Davis said the turnaround was "driven by traffic growth across both our airlines, increasing ancillary revenues and a focus on cost containment." Unit cost fell 16% and CASK excluding fuel was cut 4%.
"With this result, our year-to-date underlying operating profit, excluding fuel hedging losses of S$22.2 million and IPO-related expenses of S$7.6 million, was S$36.6 million, a S$68 million turnaround from the previous financial year," Davis said. Load factor rose 4.6 points to 87.6% on a 23.3% lift in capacity to 1.96 billion ASKs.
26th February 2010
Tiger Airways and Tiger Airways Australia parent Tiger Aviation Group posted a net profit of S$14.1 million in the fiscal third quarter ended Dec. 31, reversed from a S$7.9 million loss in the year-ago period.
Third-quarter operating profit was S$23.5 million, boosted by a 29% year-over-year increase in revenue to S$139.5 million.
President and CEO Tony Davis said the turnaround was "driven by traffic growth across both our airlines, increasing ancillary revenues and a focus on cost containment." Unit cost fell 16% and CASK excluding fuel was cut 4%.
"With this result, our year-to-date underlying operating profit, excluding fuel hedging losses of S$22.2 million and IPO-related expenses of S$7.6 million, was S$36.6 million, a S$68 million turnaround from the previous financial year," Davis said. Load factor rose 4.6 points to 87.6% on a 23.3% lift in capacity to 1.96 billion ASKs.
Last edited by Pedota; 26th Feb 2010 at 04:40. Reason: Incompetence
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Could this be true?
Replacing Qantas mainline services with Low Cost Airline JetStar has failed to stem the profitability and expansion of both Virgin Blue and Tiger. Both smaller airlines are using the breather to re-equip with more modern and competitive equipment. Meanwhile the headline brand QANTAS continues to bleed heavily, hampered by the misplaced allocation of resources to their second sting brand, JetStar.
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Trent 972 that statement wouldnt be far off the mark, they are now in the process of wasting $400M on aircraft interior refits because they got it wrong, if someone at QF doesnt not stop the 'madness' they are going to drown in their own mess.
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Hammer, are we refering to a new livery here? Anything been approved?
This just in today too:
Virgin cuts business price and leg room
From: The Australian March 01, 2010 7:26AM
VIRGIN Blue is introducing an economy section for business people "who don't want to put their hands in the pockets" but will cut the amount of leg room available to passengers in the cheap seats.
Virgin, which has moved away from its low-cost roots to become what it calls a new world airline, says it is not getting any value from the extra leg room it gives budget travellers, the Australian reports.
The airline has already introduced premium economy seats with perks such as food and drinks as well as lounges and frequent flyer points in a bid to attract business travellers.
And it is poised to launch a mobile phone application that allows flight bookings, changes and check-in, and gives Blackberry users extra functions.
Virgin chief executive Brett Godfrey said the airline's low-cost seating provided more room than that of its competitors.
"We don't seem to get a lot of value for that, so we've seen the ability to lower our costs further by putting in more seats," he said.
"It would be comparable in terms of seat pitch. But then having forward of the emergency exits but aft of the premium economy section a traditional economy-type product for business people who don't want to put their hands in their pockets."
Read more at the Australian.
This just in today too:
Virgin cuts business price and leg room
From: The Australian March 01, 2010 7:26AM
VIRGIN Blue is introducing an economy section for business people "who don't want to put their hands in the pockets" but will cut the amount of leg room available to passengers in the cheap seats.
Virgin, which has moved away from its low-cost roots to become what it calls a new world airline, says it is not getting any value from the extra leg room it gives budget travellers, the Australian reports.
The airline has already introduced premium economy seats with perks such as food and drinks as well as lounges and frequent flyer points in a bid to attract business travellers.
And it is poised to launch a mobile phone application that allows flight bookings, changes and check-in, and gives Blackberry users extra functions.
Virgin chief executive Brett Godfrey said the airline's low-cost seating provided more room than that of its competitors.
"We don't seem to get a lot of value for that, so we've seen the ability to lower our costs further by putting in more seats," he said.
"It would be comparable in terms of seat pitch. But then having forward of the emergency exits but aft of the premium economy section a traditional economy-type product for business people who don't want to put their hands in their pockets."
Read more at the Australian.
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the 9's are on, but on-thread topic the real issue for DJ is the off balance sheet equation which feathers the result.
Reality is that taking back on the off balance sheet masking and it's a very fine line of profitability. (eg uniforms are off balance sheet as is some critical high cost areas)
cash flow does not equal profit - even under the very forgiving IRFS system :
Reality is that taking back on the off balance sheet masking and it's a very fine line of profitability. (eg uniforms are off balance sheet as is some critical high cost areas)
cash flow does not equal profit - even under the very forgiving IRFS system :
