Things don't look too Rosy for VA
Krismiler, it isn’t only Hainan, Etihad have had significant losses included big losses associated with their partner airlines, and jet airways is screaming for a cash injection, the indication being they only had weeks of cash with which to continue operating.
Given they have cut off both Alitalia and Air Berlin, I would be surprised if Jet got any additional equity from the mothership, and same same virgin Australia,
i also hear around the water cooler than Nanshan is sitting there scratching their heads going “huh” and wondering what to do, so all in all the ownership structure might be about to morph into something quite different.
porch Monkey - good point and on face value it might have been a majority decision to excise JT from the business but would have been done so with significant lobbying from someone with potentially similar initials (but maybe not)
as we saw with the change in MT’s fortunes in cbr recently a few days can significantly alter an outcome, and who is to say the board would vote the same way again, particularly after the qf/anz link up and other various issues.
Given they have cut off both Alitalia and Air Berlin, I would be surprised if Jet got any additional equity from the mothership, and same same virgin Australia,
i also hear around the water cooler than Nanshan is sitting there scratching their heads going “huh” and wondering what to do, so all in all the ownership structure might be about to morph into something quite different.
porch Monkey - good point and on face value it might have been a majority decision to excise JT from the business but would have been done so with significant lobbying from someone with potentially similar initials (but maybe not)
as we saw with the change in MT’s fortunes in cbr recently a few days can significantly alter an outcome, and who is to say the board would vote the same way again, particularly after the qf/anz link up and other various issues.
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People forget that ANZ and QF code shared for years before they got into bed with VA. So it was quite likely they would go back. Sadly, the real reason ANZ got out will never be known in the public arena. Snake, it isn't just the board, it is also the public support he has received from one of the unions, to the extent of a "survey" being distributed to it's members regarding this. If you can think of one Australian board who have appointed a CEO that whether by perception or reality, was a favourite of the unions, I'll be very surprised. I don't say this because I don't think he can do it. I truly don't know as I have never met the man. But the more public nut hugging I see going on for him, the less I think his chances are, given the Australian industrial management style.
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who is to say the board would vote the same way again
Rumour has it that the majority of the board now want JB gone, and I reckon it’s a pretty safe bet that they wouldn’t want one of his cronies to replace him.
Except that the other company made profits before and after and that year remains the only year they didn't - this bloke has been in charge of this company for 8 years and has barely made a return on anything, with increasing revenue. We are constantly showered with another bunch of bean-counter, weasel-word rubbish like 'cash flow positive' and/or similar rubbish about 'fundamentals being sound' - it's all clap trap... I'm sure we heard the same rubbish from Pan Am when it was shrinking it's way to oblivion... just how much more evidence do we need that this organisation's management is thoroughly incompetent, narcissistic and anybody that has come along with even a shred of an idea about what an aeroplane is or how an airline operates profitably has been shown the door. Just a complete and utter joke.
If you believe the AFR, board will support quick move of JB for hopefully JT. If not they sell 5% to activist to shake things up and clear the decks more throughly. 51% shareholders are on board with this, China not showing their cards... yet.
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Yeah, AP, we get it. You hate Virgin, you hate the management, whatever. Same old bile and vitriol in every post. Got something useful for us?
"If you believe the AFR". Says it all...........
"If you believe the AFR". Says it all...........
All this talk about JT.
You lot need to remember the Chairman was the one who sacked him. Highly likely she would reappoint him now, not.
You lot need to remember the Chairman was the one who sacked him. Highly likely she would reappoint him now, not.
No, I don’t hate Virgin I know there are some good people there but none of them are in management - I also know a lot of good people who’ve been shafted by the current leadership. My argument is not with the company but it’s management.
Mate you seriously going to contend that a business that has lost money hand over fist since this overrated imbecile took over and has had billions poured in for no return should still be there... had a friend once who was a PA to a MD in the mining industry, the share price dropped 10% and stated there for 6 months and the MD, the PA and everyone around them was fired...
The share price is around 22c... it’s been there for 5-6 years, the company is in net loss to a massive extent for the whole time he’s been there, some good people have been recruited then shafted when they disagreed with him and it’s always someone else’s fault... bought Skywest and got rid of half the aeroplanes, now paying Alliance to do the flying, someone else’s fault... the A320/B737 TT debacle, someone else’s fault... millions piled into LAX, still losing money, someone else’s fault, automation mistakes, someone else’s fault... DPS debacle, someone else’s fault... his arse in business class more important than a person positioning to fly an aircaraft because of some 70s misconception about staff travel yet allows staff to travel in J long haul... I guess that was someone else’s fault too... all you hear from that company is decent people asking “why did we do a instead of b, it doesn’t make sense...” answered with “JB wanted...”
I keep commenting because the company is a corporate joke and it’s CEO is the most overrated executive in the industry... the fact this guy is still being paid a salary let alone a bonus for ch***t sake is completely laughable.
This bloke is the Basil Fawlty of the aviation industry and his inner circle is full of Manuels...
Anyone who buys the line about the fundamentals being sound, think about this, after ignoring the write downs...
they made $110 million on revenue of $5.4 Billion, just think about that.
they made $110 million on revenue of $5.4 Billion, just think about that.
Except the only reason that you can write off a deferred tax asset is if Management do not believe that they will have sufficient future taxable profits to utilise the tax asset. So, no matter how Management dress this up, their view MUST (under accounting rules) be that they aren't profitable in the medium to long-term; what is more the auditors must agree with this following a review of their future financial projections.
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From today’s Australian:-
Hopefully sooner rather than later.
Whether or not Mr Borghetti would be delivering the next result was less clear, with the CEO indicating he may be gone well before January 2020.
“I’m staying here for another few months or thereabouts,” he said.
“The company is conducting a search and when they find someone and a proper handover is done, then I’ll go.”
“I’m staying here for another few months or thereabouts,” he said.
“The company is conducting a search and when they find someone and a proper handover is done, then I’ll go.”
Moderator
Forget the article headline, read the article in reverse, starting at the last paragraph:
Then the second last paragraph:
I seem to recall another Australian airline doing something not dissimilar in recent years?
With a little tweaking in management Virgin could be looking like a good investment!
”The company said the loss was driven by a $573 million hit from accounting adjustments, including taking out $452 million in deferred tax assets from the books and a $121 million write down in the value of its international business.”
Then the second last paragraph:
’The loss came despite revenue increasing by 7.4 per cent to a record $5.4 billion and a doubling in its net cash position to $540 million.”
I seem to recall another Australian airline doing something not dissimilar in recent years?
With a little tweaking in management Virgin could be looking like a good investment!
Except the only reason that you can write off a deferred tax asset is if Management do not believe that they will have sufficient future taxable profits to utilise the tax asset. So, no matter how Management dress this up, their view MUST (under accounting rules) be that they aren't profitable in the medium to long-term; what is more the auditors must agree with this following a review of their future financial projections.
In saying that, there is apparently $1.4 billion in cash sitting around. And they are reducing their leverage, I'm guessing by paying debt down. By the looks of it they don't need any cash injections either from shareholders. At least the free cash flow is there to keep the place running...no paying for fuel on delivery.....
Sure the share price is low, but it's not a very liquid share with a tiny free float. It doesn't exactly attract the big financial institutions to buy and retail holders very seldom move the market.
It will be interesting to see if they will delay the MAX again or reduce the rate of MAX deliveries... I though I read in the Sydney Morning Herald that JB did not expect many MAXs to be around when the 10s started arriving in 2022..
“We don’t want to fly our 737s for 25, 26 years like Qantas does,” said Mr Borghetti, adding he expected Virgin to have taken on “closer to 10… than 30” of the new aircraft by 2022.
JT is also out of the running for CEO...
https://www.smh.com.au/business/comp...29-p500jp.html
Last edited by Gate_15L; 30th Aug 2018 at 02:07. Reason: added info
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All this FY report tells me is JB will be here for another 12mths. His bonus in 12mths will be astronomical and he’ll walk out the door. The board was/is self appointed by JB so the talk about them wanting him gone is rubbish so is all this JT talk.
JT is also out of the running for CEO.
Unless on your in the executive circle nobody knows what went down behind closed doors. As much as I got was she got rid of him and he was never to return. You don’t then go rehire someone who you cannot stand and fired. According to some on this forum you do.
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JT is also out of the running for CEO...
He was only ever in the running according to Pprune show ponies.
Unless on your in the executive circle nobody knows what went down behind closed doors. As much as I got was she got rid of him and he was never to return. You don’t then go rehire someone who you cannot stand and fired. According to some on this forum you do.
As of last week he was still in contention.
A long list to take the reins at Virgin Australia has begun to take shape with former Australia Post boss Ahmed Fahour and Westpac executive George Frazis some of the names under consideration to succeed chief executive John Borghetti
Last edited by The Bullwinkle; 30th Aug 2018 at 04:02.
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AP, my reading is fine. I was answering 2 posts in the same post. I "contend" nothing. I have expressed no opinion on whether I believe Borghetti should stay, go or anything else. My opinion is completely irrelevant in the context of who gets the job next. Which is why I don't get stressed over it. You on the other hand, are gonna blow a seal if you keep that ranting up........
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Bullwinkle, it doesn't matter that much who gets the job. What is important is that they surround themselves with capable, knowledgeable staff, and that they ACTUALLY LISTEN to what said staff tells them. Sadly, neither of those things usually happen.