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Virgin Australia : 315 Million Loss - How long can they survive?

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Virgin Australia : 315 Million Loss - How long can they survive?

Old 29th Aug 2019, 06:41
  #81 (permalink)  
 
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Originally Posted by B772
Will MM survive the chop ?
My understanding from the documents listed with the ASX is that MM will not be staying with the company as her position was removed by design. She will stay for a little while, whilst the new structure is implemented.
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Old 29th Aug 2019, 06:43
  #82 (permalink)  
 
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So are any domestic services likely to be cut? Or do they all make money?
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Old 29th Aug 2019, 06:45
  #83 (permalink)  

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Originally Posted by B772
Will MM survive the chop ?
Already gone, in a teary farewell too.
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Old 29th Aug 2019, 06:47
  #84 (permalink)  
 
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Originally Posted by cooperplace
So are any domestic services likely to be cut? Or do they all make money?
It is likely some routes will either be cut or moved between VA and TT. Obviously we don't know what routes make what but regional routes are probably most likely to come under pressure. There is also the possibility of using Alliance for more of the marginal regional routes.
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Old 29th Aug 2019, 06:50
  #85 (permalink)  

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VA should go back to DJ. Pretty much what Machtuk said.

They established themselves in a LCC type role, and then got handed a nice wedge of the market after AN's collapse. Delusions of grandeur meant they felt they could step up & compete with QF, but their brand & market was already established. Go back to competing with Jetstar & when the bottom line looks better, perhaps look at re-entering the premium market in conjunction with a cashed up partner.

My 2c. (which is frighteningly close to their share price atm)
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Old 29th Aug 2019, 07:05
  #86 (permalink)  
 
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Originally Posted by -41
about a million per week - 47.4 million just in lease fees excluding other ancillary costs
I bet the lessors are laughing all the way to the bank. Why not bring the Ejets back in some capacity and have either VARA or Tiger operate them, or even Cobham since they already have the pilots. That makes more sense than wet leasing Alliance's fokkers to do their thin regional routes.
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Old 29th Aug 2019, 07:22
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Originally Posted by Buster Hyman
Already gone, in a teary farewell too.
Seriously!!!
The news just keeps getting better and better!
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Old 29th Aug 2019, 07:42
  #88 (permalink)  
 
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It will be a teary farewell when go Gibbs!
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Old 29th Aug 2019, 07:49
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Originally Posted by G.A. Boy
It will be a teary farewell when go Gibbs!
I doubt that very much!
I’m sure they’ll all be having cake in the village that day!
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Old 29th Aug 2019, 07:57
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It has just been brought to my attention Paul Scurrah and Merren McArthur knew each other from Queensland Rail during the period 2010 - 2011. Merren may not have been up to the task required !
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Old 29th Aug 2019, 08:56
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I don't wish to add to the commentary here about what VA should or shouldn't be doing to return themselves to profitability..... it's not my area of expertise.

I do however, know a lot of good guys and girls who work there and it never a nice thing to go through. Amid all the negativity and bullish!t you must be hearing right now, I hope things settle down and sanity is restored.
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Old 29th Aug 2019, 11:29
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https://www.escape.com.au/travel-adv...1570540dfaad6c

MM reveals her best packing tips - looks like she'll have to use them.
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Old 29th Aug 2019, 11:51
  #93 (permalink)  

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Originally Posted by B772
It has just been brought to my attention Paul Scurrah and Merren McArthur knew each other from Queensland Rail during the period 2010 - 2011. Merren may not have been up to the task required !
You think she was rail roaded....
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Old 29th Aug 2019, 12:06
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Originally Posted by Buster Hyman
You think she was rail roaded....
I see what you did there......
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Old 29th Aug 2019, 12:24
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Hah, tell me about it. Telling them to stick their offer up their ass was a fabulous experience. Having interviewed for and been accepted by every major in the country, that lot were by far the worst to deal with during the interview process.
What a load of garbage. Accepted by them all eh? Must have been that PMI exam that got you in eh?

If that's how you rejected a job offer I'd reckon they're pretty happy you didn't accept. Clown.
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Old 29th Aug 2019, 14:57
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Originally Posted by The name is Porter
What a load of garbage. Accepted by them all eh? Must have been that PMI exam that got you in eh?

If that's how you rejected a job offer I'd reckon they're pretty happy you didn't accept. Clown.
Aw, I've got a new pet. He's gonna follow me everywhere. How cute.

I'm pretty sure VA is busy worrying about the catastrophic performance of their business, rather than the many candidates who decided to go elsewhere after dealing with the appalling recruitment process.
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Old 29th Aug 2019, 15:05
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Originally Posted by havick


haha I hope you’re joking. You do realize that virgin Australia is smaller than most regionals in the USA? Any US carrier would have zero interested in a failing business.
Well, yes. It was largely tongue-in-cheek... but DL if they ever were interested could certainly do better than the mishmash of airline owners faffing about that have had not far off a decade to sort it out.
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Old 29th Aug 2019, 15:18
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Originally Posted by juliusg
Colonel Klink is right on. Couple more points, lot of disparagement in these posts and some who clearly don't fly on VA. (I am VA and QF plat). The VA Business class exceeds QF every time in catering. Flew QF business yesterday Cairns-Sydney; one white, one red wine. That's a choice? No salad. Seeded sourdough or seeded sourdough. Fly VA business often interstate and USA & HK. VA can't be beaten in J. I suspect international will go as well as Tiger, since the results show a decent profit on domestic and 7% revenue growth. Get rid of the stuff that doesn't work, and possibly even ditch the Virgin branding as this costs millions each year too.
But Qantas makes a profit and Virgin doesn't. Obviously Virgin is spending too much on it's product up the front. An out of this world product is great, like AN International, but don't get used to it because it won't be around long if it's not sustainable... well, in Virgin it seems it will because it just goes on and on and on regardless of profit and keeps paying it's CEO bonuses on and on and on for crappy performance. I feel very sorry for the people who may lose their jobs, it is tragic and most of us have been through it... what's really terrible here is that it's become an airline run by people with not much competence at running an airline because despite the good product, the company is generally incompetent... can't get EBAs signed for years, can't negotiate, tosses people out who know what they're doing and replaces them with sycophants who use all the right management-speak words in every meeting... too much duplication, too much taking a simple process and putting sixteen steps in it, 3 spreadsheets to be updated, cobbled together joke IT solutions (a friend flew with them a while ago and said they checked in at the kiosk then got to the gate and weren't checked in... heard this from a few people although it hasn't happened to me)... these are very basic things that add complexity and layers that aren't necessary.
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Old 29th Aug 2019, 15:25
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Originally Posted by PlasticFantastic
I'm not sure that's quite right. Qantas invested heavily in setting up Jetstar to 'pincer' Virgin Blue with an even lower cost product, leaving Qantas itself free to specialise as a full service carrier. JB's move to the current VA model was a response to the fact that VB was caught in the middle, and not winning.

The alternative wouldn't have been to leave VB as it was - it would have been to strip it back to a ULCC model, and JB's view at the time was that there wasn't space in Australia for two, full-size LCCs, and that they stood a better chance of taking corporate marketshare from Qantas.

That's not a defence of JB - I think he lost sight of the need for cost control - but I do think he was right that there wasn't space for multiple LCCs. SQ learnt that with Tiger (and then JB bought it...), and NZ seem to realise this - hence their complete disinterest in entering the domestic market (well, that and having been burnt by Ansett).
Sorry, but that's wrong. Jetstar was announced in 2003 and started operations in 2004 in May (25th to be exact). Ansett was LONG gone and Qantas had taken on some Ansett leases of 767s to get the capacity to cope with the absence of AN. DJ as they were then, also leased one or two ex AN 737s to take up the slack. Ansett exiting most definitely resulted in DJ's survival as it was rumoured to be weeks or a month or so away from pulling the pin (apparently RB has done this more than a few times with no regard for investors losses)... exit AN, ramp up DJ. Then for years DJ had no idea what it was once JQ started... could not decide whether it was low cost, premium or something in between. They should have gone downmarket, kept the 737s and cheerful image and they would have remained profitable. As it is they are too small to effectively compete with QF... even AN struggled with it's good but anaemic international network.
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Old 29th Aug 2019, 15:27
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Originally Posted by smiling monkey
It surely doesn't help when they are still paying for leases of E190 aircraft parked in Nashville, USA. How much is that costing them per year?
PLUS ATRs costing leases but taped up against the fence somewhere and to top it off in this "How to Wreck a Business 101" is the fact they're PAYING another operator to fly the routes... even more laughingly, an operator now 20% owned by QF...
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