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

Is JB not doing what the board wanted him to do?

It's more JB telling the board what he wanted to do.

Some CEO's & the like forget that it is not a game. They may be able to collect a few million & wait around for the next position to come up, but the employees & their families are the ones that pay when it all goes wrong. This is a particularly sensitive area for pilots because of the seniority system. Unless you are still relatively young, losing your company can mean the end of your stable career while your experience goes to waste back in the right or, heaven forbid, back seat. And that will be accompanied by a significant reduction in standard of living, or way of life if you end up commuting to a contract job.

I'm not suggesting that that is the case here, but time will tell. If these men & women really had the best interests of their employees in mind, like it is PC to say they do these days, perhaps they would be a little more conservative in their decision making.

:mad: :mad: :mad: :ugh: :ugh: :ugh:

b772

thanks.

The mail room boy has been the captain of the ship and has driven her into the rocks . Why would anyone think he can fix his own mess. Remember that AirNZ CEO walked with his company after JB didn't walk the plank. Qatar are more or less saying they're out too...

Social niceties are not all that is needed to run a successful airline

QATAR are out of what? Makes no sence.

Nocookies | The Australian


The chief executive of Qatar Airways has ruled out buying any or all of Air New Zealand’s stake in Virgin Australia, saying the Gulf carrier only invests in “successful” airlines.

The rejection by Qatar Airways chief executive Akbar Al Baker comes as analysts at Credit Suisse warn that Virgin Australia needs to raise as much as $1 billion in new capital to repair its balance sheet.

That task to raise capital is likely to fall on Virgin’s existing shareholders — Etihad and Singapore — after Mr Al Baker indicated Qatar Airways had no interest in buying any of the 25.9 per cent stake currently being reviewed for sale by Air New Zealand.

Buying into airlines around the world forms a central plank of Mr Al Baker’s strategy to quickly grow the Gulf carrier. The airline has become the largest investor in British Airways parent International Consolidated Airlines Group and recently it also struck an agreement with Italian carrier Meridiana under which it could take a 49 per cent stake by midyear.

Too many fingers in the Virgin pie. Lots money being siphoned off so the investors can get their money back before the **** hits the fan.
The victims here are the shareholders and the staff.
Would guess another Airline likely to start up in the next 5 years , possibly backed by Middle East or China.

Why would Qatar buy into an airline partially owned by Etihad anyway?

He is like Mick O'Leary, likes seeing his face in the paper.

Not wrong there.

He was only in Oz for a couple of days...already made his name into about 150 news articles.

Mission Accomplished.

Wow, Qatar hey..... wonder if he see's an opportunity for more slaves?

Either way, just like all sociopathic CEO's, he is notorious for saying the exact opposite to his intentions.

I dont think I would want to work in Virgin if Qr owned it!

Opportunity for Singapore to gain a controlling interest maybe.

Denied by the Kiwis in 2001, facilitated in 2016?

I wouldn't be relying on SQ to be any sort of white knight. They had the opportunity to get Ansett in 2001 after AirNZ cut it adrift. SQ have proved time and again that unless an airline is based in Singapore then they are clueless.

Could you give a couple of examples?

^^^ Tiger Australia?

SQ's investment in Virgin Atlantic was hardly an inspired investment. SQ paid £600m for a 49% stake in Virgin Atlantic in 1999, which it then sold to Delta for £224m, a loss of £376m!

The Gruniad wrote..

.

Caveat:-I have no inside knowledge as to the tax, or creative accounting implications. My comments are entirely based on the "face value" numbers available in the public domain

The AFR is speculating that Cathay and Hainan Airlines may be two sharks circling.

No Cookies | Herald Sun

Crawford Rix who came from BMI Baby in the UK was the problem, not so much SQ. This guy ignored the warnings from CASA.

Tiger
Virgin
Ansett
Air New Zealand

Or was none of that SQ's fault? That was my point, outside of Singapore they have not had a successful investment in airlines.