VA annual profit plunge of $110 mil
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Well I guess that international to you and me mean different things, given I fly to different countries I would have thought that would be classed as international. Maybe I missed something in our manuals about not being short haul international...
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I'm sorry you missed my sarcastic comment. The point is that the international routes flown are not substantial. That Borghetti's cunning plan doesn't include flying to Asia, Europe, North and South America, Africa. There isn't much money to be made in their current or future international ops.
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This is quoted straight from the Virgin Anouncement on the ASX...
Domestic
Domestic EBIT22 was a loss of $44.4 million (including $8.8 million23 from Skywest), a decline of $137.6 million on the prior comparative period. This performance was impacted by the difficult economic and operating environment which has impacted revenue, includes allocated corporate overheads and the Skywest loss, and makes no adjustment for waived ancillary fees or other earned revenue impacts from the Sabre migration.
International
International EBIT24 was a profit of $7.7 million, making no adjustment for waived ancillary fees or other earned revenue impacts from the Sabre migration.
Interesting that International made a profit in the last year and the Domestic Operation LOST a fortune... As for future international ops...tbc.
Domestic
Domestic EBIT22 was a loss of $44.4 million (including $8.8 million23 from Skywest), a decline of $137.6 million on the prior comparative period. This performance was impacted by the difficult economic and operating environment which has impacted revenue, includes allocated corporate overheads and the Skywest loss, and makes no adjustment for waived ancillary fees or other earned revenue impacts from the Sabre migration.
International
International EBIT24 was a profit of $7.7 million, making no adjustment for waived ancillary fees or other earned revenue impacts from the Sabre migration.
Interesting that International made a profit in the last year and the Domestic Operation LOST a fortune... As for future international ops...tbc.
Last edited by always inverted; 31st Aug 2013 at 02:26.
I guess it depends upon what tier of the business wears the overall group loss. It's a fair suspicion that QF's international arm is Peter, with JQ being Paul. Whether VA has employed a similar strategy in reverse, well who knows?
Overall the entire business has to be viable, something the next few years will reveal.
Personally I hope VA hasn't bitten off more than it can chew. The acquisition of Tiger and Skywest obviously had an effect on the bottom line. The real endgame however must surely be the costs involved in making these acquisitions profitable?
Overall the entire business has to be viable, something the next few years will reveal.
Personally I hope VA hasn't bitten off more than it can chew. The acquisition of Tiger and Skywest obviously had an effect on the bottom line. The real endgame however must surely be the costs involved in making these acquisitions profitable?
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You need to spend a dollar to make a few more. They needed a lcc ie Tiger to compete in any way against JQ. Q successfully snookered V with the dual brand strategy. Getting into Skywest, not sure but hope it works. I'll give them credit for having a go at growth and product diversification.
Last edited by ampclamp; 2nd Sep 2013 at 02:32.
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What a load of bollocks.
No doubt executive bonuses are still safe?
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Typical excuses - carbon tax, restructuring, economic uncertainty, fuel in USD, new software, everybody else's fault except the CEO and Co, yeah yeah same old story we know........
Perhaps investing in Tiger was a bad choice?
Perhaps indulging in Skywest because JB had mining royalty stars in his eyes was a bad idea? He struck while the iron was cold on this one. They moved far to late as the mi ing sector was declining at the time they bought in. That's a bad business decision John, the gamble didn't pay off.
Perhaps the ludicrous amount of mid level managers and 'specialists' for the past decade is taking its toll? If you want to compete with JQ on that front John you need to remove the layers of people who don't get their hands dirty.
I'm sick of hearing the excuses from Australian airlines for their poor performances, poor investor returns, pathetic share prices and lack of dividends for investors while at the same time the senior people reap millions in salaries and bonuses. When will everybody else wake up to this farcicle con job.
If these executives can't factor in oil prices, economic uncertainties, an outbreak of the clap and whatever else can cause profit declines then bugger off out of the industry. The excuses are lame, palpable and very very repititious. In fact the words bull**** and incompetence comes to mind.
P.S John, how many millions are you still paying that nupty Branson so as to use his his silly brand name??? What a crock.
Cookies must be enabled. | The Australian
Typical excuses - carbon tax, restructuring, economic uncertainty, fuel in USD, new software, everybody else's fault except the CEO and Co, yeah yeah same old story we know........
Perhaps investing in Tiger was a bad choice?
Perhaps indulging in Skywest because JB had mining royalty stars in his eyes was a bad idea? He struck while the iron was cold on this one. They moved far to late as the mi ing sector was declining at the time they bought in. That's a bad business decision John, the gamble didn't pay off.
Perhaps the ludicrous amount of mid level managers and 'specialists' for the past decade is taking its toll? If you want to compete with JQ on that front John you need to remove the layers of people who don't get their hands dirty.
I'm sick of hearing the excuses from Australian airlines for their poor performances, poor investor returns, pathetic share prices and lack of dividends for investors while at the same time the senior people reap millions in salaries and bonuses. When will everybody else wake up to this farcicle con job.
If these executives can't factor in oil prices, economic uncertainties, an outbreak of the clap and whatever else can cause profit declines then bugger off out of the industry. The excuses are lame, palpable and very very repititious. In fact the words bull**** and incompetence comes to mind.
P.S John, how many millions are you still paying that nupty Branson so as to use his his silly brand name??? What a crock.
