Virgin Australia concerns

[C441]

Most airlines are not good long term investments, the only people who make money out of them are the speculators and the crooks.

Or those that know that the share price has been artificially driven low with the intent of "cashing in" and the resources to make that happen……but that would never happen of course.

[galdian]

I believe the intent was that any contract F/O's employed - for either B737 or A320 - would not be permanent, all contract with no seniority dates applicable.

When the contracts were completed THEN the numbers would be crunched and offers might be made for permanent employment with seniority starting from the END of the contract.

At the same time they would still be recruiting "intake" F/O's as permanent during the rollover who would have a seniority number from the day they joined.

Regards contract Captains in the early days "expectation" was at the end of contract positions as F/O's would probably be expected and IF the stars lined up and there'd been a mass exodus of Captains AND there were no upgradable F/O's then MAYBE there'd be Captain slots to be filled.

Set your own odds of THAT all coming together!

Then the pilot deal was made with the V group.
And that, as they say, was that!

Once again only my understanding.
Cheers.

[International Trader]

Derfred,

A good comment.

[DutyofCare]

Hitting the Nail on the Head

Derfred You are spot on there with your comments !

Derfred: can you pls tell us ( little simple people ) how much longer V management can continue not making a positive announcement for the sake of their employees / share price & future

[The Bullwinkle]

Derfred: can you pls tell us ( little simple people ) how much longer V management can continue not making a positive announcement for the sake of their employees / share price & future

They made an amazingly positive announcement today!
Double Chin told us that today was International Women's Day and thanks to Virgin throwing its weight behind White Ribbon Day, less male mysoginist pilots are going home and bashing their wives/girlfriends after dealing with the crap that goes on there every day.
And she should know about being international.
Apparently she's living in Paris and just phoning it in. Not bad for a $1,000,000 a year!
No wonder they're going broke!

[donderwolkje]

What a terrible waste of time all this PC is.
The country is going down the plug hole and we debate social BS like its going to make one poofteen of a difference to how we survive as a country.
We don't own anything thing of substance any more yet we debate narrow self important crap that does not give one important boost to the future of this beautiful country. Been there, done that, and we are heading to the also rans of the world.
Cheers

[Falling Leaf]

The silence from Virgin management was deafening last International Mens Day.

[Wombat]

The Bullwinkle.

Couldn't have said that better myself. Had a good laugh. Very typical of the PC crap shoved down our throats by VA.

Wombat

[Derfred]

Derfred: can you pls tell us ( little simple people ) how much longer V management can continue not making a positive announcement for the sake of their employees / share price & future

I hate to say it but the next positive announcement will probably be that a major shareholder has made another $300M capital injection to keep the Company afloat.

I sincerely hope the management (or a new management) can come up with something to get the airline back onto it's own two feet before it's too late. And I say that as a QF pilot.

[The Bullwinkle]

I sincerely hope the management (or a new management) can come up with something to get the airline back onto it's own two feet before it's too late.

They won't!

[Popgun]

I sincerely hope the management (or a new management) can come up with something to get the airline back onto it's own two feet before it's too late. And I say that as a QF pilot.

Agreed. It will be a disaster for everyone in the long term if we ended up with only 1 airline (group) in Australia.

PG

[Willie Nelson]

To add to what international trader stated:

https://www.virginaustralia.com/au/e...S_ASX_RELEASE/

I think the above announcement was when the rot set in. Aside of the current management concerns that some have, once the majority shareholder divested the comapany of cash reserves, essentially remortgaging the farm, before hitting the road, things were always going to be very difficult. The competition, for all its failings, has always managed its debt levels quite effectively.

The yields in this game are too low.

It is no reflection on the professionalism of those at the coalface that you got screwed by Toll some years ago. I hope it all comes back together somehow.

[The Bullwinkle]

I'm starting to think this is a standard QANTAS strategy.
Send Gary Toomey to Ansett, that gets rid of them.
Send Borghetti to Virgin. Looks like they're going the same way!

[t_cas]

A 45% reduction in debt and over half a billion squirreled into cash reserves, equaling approx 1.5 billion together, is a marked decrease in leverage. This was achieved on top of operating costs. Is this what is being commented on as bad or going backwards?

[virginexcess]

Originally Posted by t_cas

A 45% reduction in debt and over half a billion squirreled into cash reserves, equaling approx 1.5 billion together, is a marked decrease in leverage. This was achieved on top of operating costs. Is this what is being commented on as bad or going backwards?

Correct me if I'm wrong, but wasn't the debt paid down from proceeds received as a result of the capital injection from the chinese? If it had been paid from operating profit, then the underlying profit figure would have been much higher, to the tune of $500m. If I am correct on this Borghetti's claim is not one of having paid down debt, but one of being able to convince yet another shareholder to give him more capital to fritter away on his next fancily named project.

If the debt reduction was a product of JB's brilliant business strategy, then we should see another significant tranch of debt retired in the second half of the year. I bet we don't.

[t_cas]

Originally Posted by virginexcess

Correct me if I'm wrong, but wasn't the debt paid down from proceeds received as a result of the capital injection from the chinese? If it had been paid from operating profit, then the underlying profit figure would have been much higher, to the tune of $500m. If I am correct on this Borghetti's claim is not one of having paid down debt, but one of being able to convince yet another shareholder to give him more capital to fritter away on his next fancily named project.

If the debt reduction was a product of JB's brilliant business strategy, then we should see another significant tranch of debt retired in the second half of the year. I bet we don't.

The capital injection you are referring occurred as new shares issued. This issue (and resultant dilution of existing shareholdings) was no where near the levels in the figures quoted. Of course there is creative accounting. A major rivalled displayed that on a grand scale over the years. To refer to JB as the reason.... who will really know. One thing is for sure, financial reporting has become a dark art and I am certain the leader has many minions crunching the numbers to fit.

My point all along is that inflammatory reference to Virgin failing does not help anyone. Facts are airlines are cash cows. The difficulty is in the efficient running of the operation as capital cost and compliance factors are massive and frankly restrict every airline in this country. There will always be personalities that will take advantage of this cashflow for there own advancement. Particularly in management roles when there is a revolving door.

[The Bullwinkle]

My point all along is that inflammatory reference to Virgin failing does not help anyone.

So speaking the truth is regarded as inflammatory, but polishing a turd is okay?
The truth is Borghetti might, and I'll emphasise "might", be a good salesman, but he has no idea how to run an airline.
People are now speaking out from sheer frustration in an effort to make others see the truth about Borghetti and to push for change, hopefully before it's too late, but alas, the board will continue to believe his spin right up to the point where Virgin closes its doors.
The writing is on the wall, it's just a matter of time.

[t_cas]

Originally Posted by The Bullwinkle

So speaking the truth is regarded as inflammatory, but polishing a turd is okay?
The truth is Borghetti might, and I'll emphasise "might", be a good salesman, but he has no idea how to run an airline.
People are now speaking out from sheer frustration in an effort to make others see the truth about Borghetti and to push for change, hopefully before it's too late, but alas, the board will continue to believe his spin right up to the point where Virgin closes its doors.
The writing is on the wall, it's just a matter of time.

I am not here to defend JB, I also believe he may not have the solution going forward. Airlines are a big machine. Providing many people with livelihoods. The airline (board) will work it out. Along the way there will be many changes. That is the business. If any poster here knows so much more. Apply for the job.

Frustration levels are high enough all over the shop. Not just VOZ. Negativity breeds the same.

[galdian]

Just wondreing/to clarify - have there been company notices in either tigerair or Virgin (one would hope both) to confirm the fleet swap is officially cancelled??

[BPA]

There has been no announcement re the fleet swap, as there is nothing to announce ie no changes from the plan to replace the TT A320's with B737s. There was a rush to get 3-4 B737s on the TT AOC for the DPS flying, but now that's not happening at least one of those 737's will return to VAA/VAI and will operate with no airline markings on it, as it will eventually go to TT.
VUD is still doing trying flights at TT.