Job cuts at Virgin maybe!
 

More cutbacks [5.1%] and losses from the 'mail room' boy!

Well given that the crew on the 737 fleet have for the most part been well into overtime constantly for the past 12 months any easing off in that fleet would come as a relief for most. The ATR though with a planned reduction in airframes might soon be over crewed. It seems that Virgin now has a fairly constant trickle of retirements so I would hazard a guess that some reduction in the flying program can be absorbed. But this could just be the start of reductions so who knows��

Well slice, I'll be happy to not be seeing 90+ hr rosters anymore.........

Its a worry that in times of record low fuel prices, and the fact that QF seem to be making buckets, that Virgin doesn't seem to be able to turn a profit. Tiger either for that matter. In the longer term this can't continue. What is it that they are doing wrong, I've heard the loads are good???

SN

I think you have asked the correct question, Soup.

Well it's a good thing that Tigerair is on track to make a profit then isn't it. As was pointed out when they made a half year profit.

morno

SN

In my opinion Virgin has been poorly managed from a financial perspective. The rot started when it expanded quickly and transformed from a basic LLC to a FSC using excessive debt. There should have been a number of capital raising's as the business expanded.

Debt/Equity Ratio is 271% (QF is 161%)

Net interest cover is 0.47 (QF is 4.61)

Net interest cover below 1 is cause for concern.

:ugh:

Just wait until the global economy crashes.

Most airlines are making money now because market manipulation is keeping oil low and we are still in the credit cycle.

When these two factors change, those airlines that are in poor shape will be in deep trouble.

Rationalization anybody?

I get nervous when I see threads like this. Having endured a lot of stress at QF from the period 2011-2015 when things were reported to be so bad, I'm only too aware of how this can play into people's minds.

Most people will sail on through but for some, this sort of skittishness adds a significant degree of stress to an already stressful occupation. When added to financial stresses or other family issues it can become the proverbial straw.

So to my aviation colleagues in Virgin I hope that there is a way through this. If you're getting stressed about things please reach out to others for perspective.

can we have a definition for net interest cover please?

Nicely put Keg.

Indeed we need to exercise our duty of care. Business philosophy these days seems to miss the profound effect of company warfare upon those who bear much responsibility on their shoulders on a daily basis. The attempts to diminish our value do have unintended consequences.

Well said Keg.

Nobody likes to see people under stress through circumstances beyond their control, regardless of which uniform you wear. We're all pilot colleagues first and foremost.

I'm certain this is just a temporary situation.

Looking forward to more friendly rivalry for years to come.

waren 9

Interest cover (ratio) is a measure of a company's ability to service its outstanding debt without any provision for reduction in the principal.

The formula being EBIT/Interest Expense

EBIT = Interest (Earnings) before (Excluding) Interest and Tax

I'm predicting external recruiting by end of the next financial year. More likely the end of this calendar year.

what period does that interest coverage figure represent?

great post Keg...

Well put Keg,I'm certainly starting to get that 2001 AN feeling again,been hoping to avoid polishing up the CV.Bugger.

If it's any consolation Ratpin, many former AN crew now in Qantas also had that feeling over the last few years. We managed to ride it out and I hope you guys do too.

Anecdotal evidence would suggest that managment have been running fairly lean on crews over the last year or so, so hopefully any capacity cuts will just bring crew numbers back toward normal levels rather than cause any. Job losses. That's certainly the message the CEO was peddling at his roadshows.

Interesting article in the Australian today. Virgin need a billion dollar capital injection to tidy up the balance sheet.

No wonder the kiwis want to walk.

Qatar CEO saying he's not interested as he only buys into successful airlines. Damn.

Hopefully JB has the skills to steer through this one.

When does JB return to Q ?
 

Another good post Keg - - - you the MAN !

Hey buy the way " " " When will JB return to Q :} :} :}

It would appear that his mission IS COMPLETE :D