Virgin America 2Q loss $31.7 million

[Tomct]

Just LOVE listening to all these "so called" financial experts talk about how we won't be around in a year......UM, Ya'll have been saying that for the last 5 years. STILL HERE!! Here is an idea, you just worry about your airlines and your problems and let us worry about ours. Nuff Said!

 

[Jetjockey]

Just LOVE listening to all these "so called" financial experts talk about how we won't be around in a year......UM, Ya'll have been saying that for the last 5 years. STILL HERE!! Here is an idea, you just worry about your airlines and your problems and let us worry about ours. Nuff Said!

I used to hear that rationale at Midwest Express. Don't need to be a "financial expert" to see the company is bleeding money, and is unprofitable. I do not wish ANY ill will upon any pilot or company. It's just you really have to wonder how many unprofitable quarters the company can endure.

 

[fam62c]

I used to hear that rationale at Midwest Express. Don't need to be a "financial expert" to see the company is bleeding money, and is unprofitable. I do not wish ANY ill will upon any pilot or company. It's just you really have to wonder how many unprofitable quarters the company can endure.

They can theoretically endure forever as long as there are investors willing to fund the losses and provide working capital. So far there doesn't seem to be a shortage of new capital. Whoever is bankrolling VA seems to be willing to hang in there for the long haul believing that at some point the company will be viable and they will be able to cash out their equity. It would appear to be an unproductive use of investment capital to me but obviously the folks with the money see something here or they would pull the plug and take the losses before they get to be much larger.

It's going to be another tough winter for this company. I wish the folks who work there the best of luck, maybe things will start to turn around in the spring and next year will be the turning point.

 

[ackattacker]

They can theoretically endure forever as long as there are investors willing to fund the losses and provide working capital. So far there doesn't seem to be a shortage of new capital. Whoever is bankrolling VA seems to be willing to hang in there for the long haul believing that at some point the company will be viable and they will be able to cash out their equity. It would appear to be an unproductive use of investment capital to me but obviously the folks with the money see something here or they would pull the plug and take the losses before they get to be much larger.

It's going to be another tough winter for this company. I wish the folks who work there the best of luck, maybe things will start to turn around in the spring and next year will be the turning point.

They have been telling their investors that their losses were almost entirely due to the cost of growth. When they stop growing, (actually shrinking this winter), they need to show a profit. Which, IMHO, is doubtful.

The best comparison I can draw is Kingfisher airlines in India. Started at around the same time, bankrolled and led by a charismatic billionaire. First class service and brand new everything, sexiest flight attendants. Everyone thought they were destined for greatness, and could never fail because they were bankrolled by a multi-billionaire. Never turned a profit, started to have trouble getting new financing to pay the bills for their aircraft. Parked some aircraft and then weren't able to pay their salaries. $1.5 billion in debt. Looks like their doors are now shut for good as the Indian regulators are about to yank their certificate.

 

[fam62c]

They have been telling their investors that their losses were almost entirely due to the cost of growth. When they stop growing, (actually shrinking this winter), they need to show a profit. Which, IMHO, is doubtful.

The best comparison I can draw is Kingfisher airlines in India. Started at around the same time, bankrolled and led by a charismatic billionaire. First class service and brand new everything, sexiest flight attendants. Everyone thought they were destined for greatness, and could never fail because they were bankrolled by a multi-billionaire. Never turned a profit, started to have trouble getting new financing to pay the bills for their aircraft. Parked some aircraft and then weren't able to pay their salaries. $1.5 billion in debt. Looks like their doors are now shut for good as the Indian regulators are about to yank their certificate.

One trait of successful investors is that they are willing to throw in the towel and take the loss when an investment goes south before they throw too much good money after bad. They haven't thrown in the towel yet on VA so they must see something but the talk of a "major restructuring" is never good. In this industry I can't see what they can restructure that will make a difference unless they can try to become another Allegiant and find niche routes with minimal competition. There's only so many of those routes available. The next step may be going to the employees, vendors and lenders and start the carpet dance. It's tough for small companies that are not "too big to fail."

 

[Flyer1015]

Apparently there is a new VP of Network Planning/Revenue. He's pushing for this change, and it does make financial sense. VA's first quarters have always been the worst compared to the other three quarters. By eliminating some unprofitable flying (redyes, midweek flights), VA is cutting its schedule 3% for the first quarter Jan 1 - March 30. By trimming the schedule and not paying for fuel expenses on flights where money isn't being made, the plan is to cut the overall loses that are traditionally seen in the first quarter. Note that as soon as Apr 1 comes, the flight schedule goes BACK to normal 100% operations.

 

[bri5150]

I am not concerned about a media outlet that thinks we need to restructure. We are private. There is only so much they/we know. One instance I heard may be happening is we pay through the roof for airplane leases, but we lease from our investors. Possible, sure?

We have stopped growing (scheduled break in deliveries) and we made a profit quarter 3. It also sounds like the numbers are good for quarter 4. Of course, the next comment will be about putting a year together. I'll take a couple quarters at this point.

 

[Blue Dude]

A profitable quarter or two is nice, but occasional quarters of single digit millions in profit hardly make a dent in years of double digit millions of losses. Give me 55 dollars, then 72 dollars, then 32 dollars, on and on so you're 600 in the hole, now I give you 5 back. Look, a profit! Now you're only 595 in the hole. Wake me when you break even, much less show a return.

 

[bri5150]

A profitable quarter or two is nice, but occasional quarters of single digit millions in profit hardly make a dent in years of double digit millions of losses. Give me 55 dollars, then 72 dollars, then 32 dollars, on and on so you're 600 in the hole, now I give you 5 back. Look, a profit! Now you're only 595 in the hole. Wake me when you break even, much less show a return.

As predicted. My point is that investors kept the place open when we were losing money. Why would they pull out once we start making a little? I am not saying we are financially free and clear now...trust me.

 

[ImbracableCrunk]

I am not concerned about a media outlet that thinks we need to restructure. We are private

God save our gracious Queen,
Long live our noble Queen,
God save the Queen!
Send her victorious,
Happy and glorious,
Long to reign over us,
God save the Queen!


etc. etc. etc.