Virgin Australia faces financial crush.
 

Earlier in the year I suggested Virgin Australia were on the road to privatisation. Nothing has changed.

The financials are still a mess even after the recent $1,000,000,000 (1 Billion) raising.
Total current assets are $1,713,700 with total current liabilities of $2,779,800. The shares are trading at around their book value but the NTA per share is 8c.

Virgin Australia are caught between a rock and a hard place.

A friend's wife works in VA accounts. Regales us with stories of having to become a Las Vegas quality juggler! No cash even after the constant injections. Some major creditors are tightening up too...

I just hope that they survive. Firstly the staff and secondly that last thing Australia needs is a virtual monopoly to an ever increasingly arrogant Qantas. Privatisation won't fix the underlying problems IMO.

So despite what many on this forum suggested, perhaps Luxon was right to pull the plug. Time for new governance and executive team me thinks

There should be no question now that Luxon was right, the question is, why has the board continued to support Borghetti?You would expectt that Elizabeth Bryan would be second person out the door, right behind Borghetti if this analysis is even close to being correct.

It shouldn't be lost on employes either that Borghetti's fixed pay went up 400k for the 15-16 financial year.

330's anf ATR's were intended to be the saviour of the airline, instead they may well be the death of it. One can only assume the Chinese had access to all the financials before they bought in and therefore are committed to the long term. Without them, Virgin will indeed be in dire straights in the very near future.

Virgin Australia has just released their trading update for July, August and September. The statutory loss after tax for the 3 months was $34,600,000.

It appears the interest by Singapore Airlines in taking over Virgin Australia has waned since the Chinese have come onboard possibly after being approached by John Borghetti.

Chairman of Caltex can't seem to get fuel hedging right either, what a joke.

romeocharlie.

I am no fan of Elizabeth Bryan but to be fair I have to point out that she resigned as Chairman of Caltex in late 2015.

She is still getting big bucks from Westpac (10 years) and is Chairman of IAG. This is in addition to a $400,000 package from Virgin Australia. Not bad for a 70 year old still putting icing on the cake.

One would assume despite her resignation from the position, she was still responsible for the 18 month/long term hedges still in place though yes?

I did mean to initially write ex-chairman too, my apologies.

So the company that published that article has been found to be a fake. False facts mixed in with an element of truth to give it credence.Care to reveal how you found the article Bullwinkle?

The hint should've been that not a single reputable analyst has cited that article

Pretty disgusting to put a few hundred employees through a sleepless night, so who has the most to gain from this kind of scare mongering?

http://crudeoilpeak.info/wp-content/..._2003_2013.jpg

The story may have been fake but this chart is not.

No one disagrees Virgin has a lot of work to do. However what kind of individuals go to this much effort to spread misinformation? That article was well written with just enough truth to make the falsehoods believable. And to what end?

On the basis of your statement Icarus if an organisation mixes truth and lies it's ok? As long as there's a little bit of truth? What that article alluded to regarding cash flow turned out to be false. It was almost impossible to find that article without that link. Back to my original question, how did you come across it Bullwinkle?

It was passed on to me from a colleague.
I'm not sure where he got it from, but there's plenty of other Aviation related articles on their website, not just that one article.
Not too hard to find at all really.
Don't try to shoot the messenger!

https://australinea.com/category/austraday/

Actually really hard to find. I was told about it and tried googling it in several different combinations, nothing came up. It was only once I got the link that I accessed it.

Get back in your box...

How does this...
explain this response?

And I dispute that 10 articles is plenty.....

zim2uk

What evidence do you have that the company that published the article has been found to be a fake. Have you called their number or visited them at Level 10/20 Martin Place Sydney. I notice their email server is in San Francisco but that is not unusual

BTW here is today's report.

https://australinea.com/austraday-re...november-2016/

I agree with Icarus2001 and removing access to Air New Zealand lounges and charging for spirits at the replacement lounges shows how desperate things are becoming.

Virgin Australia (VAH) are walking a financial tightrope.
Operating margin is 9.9% (QF is 19.8%)
Return on capital is 11% (QF is 19%)
Return on equity is 22.8% (QF is 39.3%)
Last financial year VAH lost an average of $5,000,000 per week. QF made an average profit of $19,800,000 per week.
VAH being the underdog has enjoyed the support of the financial community who want them to succeed. VAH were built on a poor financial foundation.

Get back in your box mate.

This thread is about an article that has been proven to be based on a falsehood. Rather than criticise the authors or article you instead regurgitate a graph from another thread that has already been robustly discussed. As if that graph somehow justifies the article

Icarus2001

To update your chart you need to add the following.

2014 Red -355.6

2015 Red -110.8

2016 Red -260.9

John Borghetti has thrown his last dice.

John Thomas will have to pick up the pieces with the support of a new dynamic Chairman.