Investors keen to see VBA's new product
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Investors keen to see VBA's new product
From AAP
SYDNEY, Feb 22 AAP - Travellers and investors alike hope chief executive John Borghetti sheds more light on Virgin Blue Holdings Ltd's new products beyond the confirmed new uniform when he delivers the airline's half year results on Wednesday.
The airline group, comprising Virgin Blue, Polynesian Blue, Pacific Blue and V Australia, has foreshadowed - through an earnings downgrade last month - that first half profit would be weaker due to the effect of the Queensland floods and weak consumer sentiment.
Hence, with little surprise expected from the financial numbers, much interest is expected to centre on whether Mr Borghetti will reveal more details on his strategy to capture a greater share of corporate travellers.
The Virgin Blue boss could unveil Virgin Blue's new domestic business class product, an alliance with an Asian carrier, new routes and even a new name for the airline group.
Or potentially, none of the above.
What is known is that cabin crew will start wearing new uniforms from Wednesday.
The new outfits, designed by Project Runway winner Juli Grbac, will be presented to the public for the first time during a fashion show featuring supermodel Elle Macpherson at a Sydney CBD shopping centre.
Net profit for the six months to December 31, was expected to come in at $27 million, according to the median of five analysts' forecasts gathered by AAP.
If the result prints in line with consensus, it would represent a 57 per cent decline from net profit of $62.5 million in the first half of 2009/10.
Company guidance, issued last month was for net profit of between $23 million and $26 million. It was the third earnings downgrade since May last year.
"The extent of this impact on revenue cannot be accurately estimated at this time, but could be up to $40 million," Virgin Blue said on January 25.
In terms of underlying profit before tax - the company's preferred measure - Virgin Blue said in January it expected the first half result to be between $70 million and $75 million, compared with the prior year's $75.6 million.
The market consensus for underlying profit before tax is $73 million.
"In terms of short-term financial performance, we expect 2H11 (second half of fiscal 2011) to be of greater significance, given rising fuel prices and continued yield pressure in the domestic leisure segment," JP Morgan analysts Scott Carroll and Paul Huxford said in a research note dated February 2.
Virgin Blue closed down one cent at 38.5 cents on Wednesday.
SYDNEY, Feb 22 AAP - Travellers and investors alike hope chief executive John Borghetti sheds more light on Virgin Blue Holdings Ltd's new products beyond the confirmed new uniform when he delivers the airline's half year results on Wednesday.
The airline group, comprising Virgin Blue, Polynesian Blue, Pacific Blue and V Australia, has foreshadowed - through an earnings downgrade last month - that first half profit would be weaker due to the effect of the Queensland floods and weak consumer sentiment.
Hence, with little surprise expected from the financial numbers, much interest is expected to centre on whether Mr Borghetti will reveal more details on his strategy to capture a greater share of corporate travellers.
The Virgin Blue boss could unveil Virgin Blue's new domestic business class product, an alliance with an Asian carrier, new routes and even a new name for the airline group.
Or potentially, none of the above.
What is known is that cabin crew will start wearing new uniforms from Wednesday.
The new outfits, designed by Project Runway winner Juli Grbac, will be presented to the public for the first time during a fashion show featuring supermodel Elle Macpherson at a Sydney CBD shopping centre.
Net profit for the six months to December 31, was expected to come in at $27 million, according to the median of five analysts' forecasts gathered by AAP.
If the result prints in line with consensus, it would represent a 57 per cent decline from net profit of $62.5 million in the first half of 2009/10.
Company guidance, issued last month was for net profit of between $23 million and $26 million. It was the third earnings downgrade since May last year.
"The extent of this impact on revenue cannot be accurately estimated at this time, but could be up to $40 million," Virgin Blue said on January 25.
In terms of underlying profit before tax - the company's preferred measure - Virgin Blue said in January it expected the first half result to be between $70 million and $75 million, compared with the prior year's $75.6 million.
The market consensus for underlying profit before tax is $73 million.
"In terms of short-term financial performance, we expect 2H11 (second half of fiscal 2011) to be of greater significance, given rising fuel prices and continued yield pressure in the domestic leisure segment," JP Morgan analysts Scott Carroll and Paul Huxford said in a research note dated February 2.
Virgin Blue closed down one cent at 38.5 cents on Wednesday.
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Project Runway winner turned uniform designer Juli Grbac has done away with the casual desert khaki pants and skirts. Females get knee-length cherry red dresses or skirts (not too tight, ahem Virgin Atlantic) and loose white blouses, both complemented with a thin black belt. The chic professional look is finished with a red jacket and violet & white blend scarf angled to the left over the uniform.
You would be forgiven for thinking this was the smart-looking Virgin Atlantic uniform. Virgin Blue's new scarf, worn over the uniform, is the major difference, and ladies can also wear grey pants that match the male uniform. The gents have gone upscale the most with white dress shirts, shimmering purple and indigo ties, and black vests and blazers.
You would be forgiven for thinking this was the smart-looking Virgin Atlantic uniform. Virgin Blue's new scarf, worn over the uniform, is the major difference, and ladies can also wear grey pants that match the male uniform. The gents have gone upscale the most with white dress shirts, shimmering purple and indigo ties, and black vests and blazers.
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as a substantional shareholder myself, I am eager to see DJ's new product!
I still cannot believe that people buy airline shares, period. The return on investment is small and stacked up against the highest of risks.
So DJ have a new CEO, new direction, about to be launched new product and major overhaul, new routes, new aircraft and the list goes on. All positive I say, agreed.
Then on the other hand you have one uni student on Youtube and Farcebook ignite a middle east revolt which at this point in time is pointing the world in the direction of an oil crisis beyond belief (Brent is already rising, and incidentaly so is gold and silver which are real investments) and airline profits = goooooooooooone.
My point is that is how fragile airline profitability is.
as a substantional shareholder myself
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The corporations act defines a substantial shareholder as holding greater than 5% of the issued capital which in VB's case is more than 100,000,000 shares
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Well as a minor shareholder, with some bought as low as 20 cents, you can't compare the old peak of $2.65 to nuthin'.
The shares pool was flooded with shares at a nominal value of 50 cents but free to Toll shareholders after it divided its stake in the airline up and gave it away to the punters.
The shares pool was flooded with shares at a nominal value of 50 cents but free to Toll shareholders after it divided its stake in the airline up and gave it away to the punters.
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You're not alone KRUSTY.
The rumour I've heard isn't a good one. As I said in another thread: There is a lot of expenditure taking place at the moment replacing equipment uniforms, paint jobs, terminals. The list must be massive. As JB said himself "It must be done, it had to be done anyway, now is the time."
He was reportedly shocked at the state of the Brisbane terminal. It really is disgusting. There are buckets under leaking urinals. Something you would expect in Africa. I'm not sure what they are going to do about the cheap and nasty retailers there. Everyone of them belongs at Fortitude Valley train station in my book.
The rumour I've heard isn't a good one. As I said in another thread: There is a lot of expenditure taking place at the moment replacing equipment uniforms, paint jobs, terminals. The list must be massive. As JB said himself "It must be done, it had to be done anyway, now is the time."
He was reportedly shocked at the state of the Brisbane terminal. It really is disgusting. There are buckets under leaking urinals. Something you would expect in Africa. I'm not sure what they are going to do about the cheap and nasty retailers there. Everyone of them belongs at Fortitude Valley train station in my book.
Skystar320 :
Why would you take out the FF business profit? There would be no FF "business" without an airline.
The other thing to remember is that any rewards program runs MASSIVE liabilities on the balance sheet, by virtue of the business itself. It is fair enough to show up the profit as the "points" go in (which is happening at an incredible rate with a large number of Woolworths customers signing up to the program), but when (if?)they are withdrawn that also has to be shown as well.
I've heard a rumour that the results are better than Qantas! When you take about the FF business
The other thing to remember is that any rewards program runs MASSIVE liabilities on the balance sheet, by virtue of the business itself. It is fair enough to show up the profit as the "points" go in (which is happening at an incredible rate with a large number of Woolworths customers signing up to the program), but when (if?)they are withdrawn that also has to be shown as well.
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The numbers are out
Airline group Virgin Blue Holdings has reported a big decline in first-half net profit and says conditions in the second half are expected to be challenging.
Virgin Blue said net profit for the six months to December 31, 2010, came in at $23.8 million, down 62 per cent from the prior corresponding period.
The result was below the market consensus of $27 million, according to the median of five analysts' forecasts gathered by AAP.
Advertisement: Story continues below Company guidance, issued last month, was for net profit of between $23 million and $26 million.
Revenue rose 12 per cent to $1.693 billion, Virgin Blue said in a statement on Wednesday.
Virgin Blue chief executive John Borghetti said while business traffic was improving on both domestic and international routes, the same could not be said for the leisure market.
"In the domestic leisure market, flat consumer confidence, forecast industry capacity growth and flow-on impacts from the recent weather events will impact domestic demand," Mr Borghetti said in a statement.
The airline has flagged a six to eight per cent increase in capacity for the full 2010/11 year, but added that "domestic capacity growth remains under review".
The airline group comprises Virgin Blue, Polynesian Blue, Pacific Blue and V Australia.
Underlying profit before tax - the company’s preferred measure - came in at $72 million for the first half, Virgin Blue said, down from $75.6 million in the prior year but within guidance of between $70 million and $75 million.
The market consensus for underlying profit before tax was $73 million.
Mr Borghetti said yield, or average fares per passenger, had improved on both the airline’s long-haul and short-haul routes.
The half had also been impacted by a number of one-off events, such as Virgin Blue’s Navitare IT system outage, restructuring costs and adverse weather across Australia and New Zealand, Mr Borghetti said.
Virgin Blue’s long-haul offshoot V Australia reported negative earnings before interest and tax (EBIT) of $7.4 million in the first half of 2010-11, an improvement from negative EBIT of $24.2 million in the prior year.
Mr Borghetti said V Australia was ‘‘on track for reaching close to breakeven’’ at the EBIT level for the full financial year.
‘‘This follows the cancellation of non-profitable routes, changes to current schedules aimed at profit maximisation and the beginning of the benefits flow through from our international alliance strategy,’’ Mr Borghetti said.
Short-haul flying, including domestic flights and international destinations in the Pacific and Asia, posted positive first half EBIT of $83.9 million, down from $103 million in the prior corresponding period, Virgin Blue said.
The 2010-11 result was hit by the reservation system outage in September last year.
More to come
AAP
Virgin Blue said net profit for the six months to December 31, 2010, came in at $23.8 million, down 62 per cent from the prior corresponding period.
The result was below the market consensus of $27 million, according to the median of five analysts' forecasts gathered by AAP.
Advertisement: Story continues below Company guidance, issued last month, was for net profit of between $23 million and $26 million.
Revenue rose 12 per cent to $1.693 billion, Virgin Blue said in a statement on Wednesday.
Virgin Blue chief executive John Borghetti said while business traffic was improving on both domestic and international routes, the same could not be said for the leisure market.
"In the domestic leisure market, flat consumer confidence, forecast industry capacity growth and flow-on impacts from the recent weather events will impact domestic demand," Mr Borghetti said in a statement.
The airline has flagged a six to eight per cent increase in capacity for the full 2010/11 year, but added that "domestic capacity growth remains under review".
The airline group comprises Virgin Blue, Polynesian Blue, Pacific Blue and V Australia.
Underlying profit before tax - the company’s preferred measure - came in at $72 million for the first half, Virgin Blue said, down from $75.6 million in the prior year but within guidance of between $70 million and $75 million.
The market consensus for underlying profit before tax was $73 million.
Mr Borghetti said yield, or average fares per passenger, had improved on both the airline’s long-haul and short-haul routes.
The half had also been impacted by a number of one-off events, such as Virgin Blue’s Navitare IT system outage, restructuring costs and adverse weather across Australia and New Zealand, Mr Borghetti said.
Virgin Blue’s long-haul offshoot V Australia reported negative earnings before interest and tax (EBIT) of $7.4 million in the first half of 2010-11, an improvement from negative EBIT of $24.2 million in the prior year.
Mr Borghetti said V Australia was ‘‘on track for reaching close to breakeven’’ at the EBIT level for the full financial year.
‘‘This follows the cancellation of non-profitable routes, changes to current schedules aimed at profit maximisation and the beginning of the benefits flow through from our international alliance strategy,’’ Mr Borghetti said.
Short-haul flying, including domestic flights and international destinations in the Pacific and Asia, posted positive first half EBIT of $83.9 million, down from $103 million in the prior corresponding period, Virgin Blue said.
The 2010-11 result was hit by the reservation system outage in September last year.
More to come
AAP
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This link also has pictures of the new uniform.
http://www.asx.com.au/asxpdf/2011022...yh3mshtl5s.pdf
http://www.asx.com.au/asxpdf/2011022...yh3mshtl5s.pdf
i've been thinking this for a while and after seeing the uniforms it looks like it's happening:
* Uniforms look like Virgin Atlantic, even the oversize Ray Bans?
* If you look at the color scheme for Virgin Atlantic, look at the tail and compare
it to the missing area on the tail of the two mostly white AFL jets, to me it looks like the curve at the back is going to meet with a new Virgin Logo like Virgin Atlantic...
My long shot:
Singapore Airlines sells out of Virgin Atalntic, allowing Virgin Blue to trade as Virgin Pacific or Virgin Australia, Virgin Australia/Pacific aligns with Virgin Atlantic through Hong Kong and Virgin America through LA (already happening.) Virgin Pacific/ Australia Jets to look like Virgin Atlantic......
* Uniforms look like Virgin Atlantic, even the oversize Ray Bans?
* If you look at the color scheme for Virgin Atlantic, look at the tail and compare
it to the missing area on the tail of the two mostly white AFL jets, to me it looks like the curve at the back is going to meet with a new Virgin Logo like Virgin Atlantic...
My long shot:
Singapore Airlines sells out of Virgin Atalntic, allowing Virgin Blue to trade as Virgin Pacific or Virgin Australia, Virgin Australia/Pacific aligns with Virgin Atlantic through Hong Kong and Virgin America through LA (already happening.) Virgin Pacific/ Australia Jets to look like Virgin Atlantic......
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Game change
What are we wanting to achieve?
1. Hedging of revenue line exposure
- maintaining our strong leisure presence but lessening our reliance on this market
- modest increase in our penetration of the higher yielding Corporate and Government traffic from 10% to 15-20%
2. Improved return, not fixated on market share
3. Access growth markets without the burden of substantial capital requirements
- internationally through consolidation of our operations and creating a virtual network through strong strategic alliances
- regional Australia- suitable aircraft and not operating entity
4. No desire to be the biggest but want to be the domestic airline of choice
I think point 4 is the best!
1. Hedging of revenue line exposure
- maintaining our strong leisure presence but lessening our reliance on this market
- modest increase in our penetration of the higher yielding Corporate and Government traffic from 10% to 15-20%
2. Improved return, not fixated on market share
3. Access growth markets without the burden of substantial capital requirements
- internationally through consolidation of our operations and creating a virtual network through strong strategic alliances
- regional Australia- suitable aircraft and not operating entity
4. No desire to be the biggest but want to be the domestic airline of choice
I think point 4 is the best!