Virgin America in the news

[waveflyer]

A rash of current reports across the nation today

Salt Lake City
http://www.sltrib.com/sltrib/money/58500272-79/virgin-america-airline-airlines.html.csp

San Jose
http://www.mercurynews.com/business...erica-ipo-doubted-same-reasons-travelers-love

Seattle
http://seattletimes.com/html/travel/2024733029_airlineservicexml.html

Motley Fool with a JetBlue twist
http://www.fool.com/investing/gener...e-or-rivalry-jetblue-and-virgin-americ-2.aspx

Prince George citizen
http://www.princegeorgecitizen.com/...ange-its-ways-to-please-wall-street-1.1419370

""You can be McDonald's, or you can be a fancy steakhouse," says Kaplan of Airline Weekly. "But if you're going to be a fancy steakhouse, you better not be charging McDonald's prices."

Daily Finance
http://www.dailyfinance.com/2014/10...t-happy-travelers-wall-street-virgin-america/

 

[waveflyer]

Most of us have friends who have landed at Virgin. They've hired when most everyone wasn't.
What's the line flyer view of them as a career?
Do you stick it out, or do you bail to the latest legacy hiring wave. I know friends in both schools of thought
What's the latest?

 

[cbrown1]

the first few articles are the same one. va also made a profit for 2013 and with oil in free fall and aa and us merging i can see an even larger profit for 2014.

 

[waveflyer]

Well I thought all of them were the same- but motley is different
My point was how much it was covered
A lot of AP stories don't get run
And each of the cities that did are VA cities or former cities (San Jose)

I like the optimism, but can you address the points in the article-
It's usually pretty easy to debunk a journalist, but there are points when it comes to an IPO
Motley is pretty interesting tOO THOUGH

 

[tzskipper]

Well I thought all of them were the same- but motley is different
My point was how much it was covered
A lot of AP stories don't get run
And each of the cities that did are VA cities or former cities (San Jose)

I like the optimism, but can you address the points in the article-
It's usually pretty easy to debunk a journalist, but there are points when it comes to an IPO
Motley is pretty interesting tOO THOUGH

Hi Wave-

Out of curiosity, I read through the S-1/A filing and also looked back at VA's past few years quarterly reports. I cannot speak to the level of "success" the IPO may be, but it does appear that the company is performing well financially. Based on last year's restructuring of their debt, and in addition, renegotiation of some ac leases, it appears that VA is on track for an annual operating margin this year of roughly (imo) 8% - 10% (let's guess $120m on $1.4bish in revenue). After subtracting out the "new" annual interest payments of $40m (I think... also, if you think the investors were taking it in the shorts, I found that prior to last year, annual interest expense paid was in the neighborhood of $120m), that leaves a net income this year of about $80m, or 10x last years.

Again, deciphering an IPO is way above my pay grade regarding how the company will be valued, as I believe only a portion of the company may be offered. Post IPO however, two things from the S1 stood out (if I read it correctly); first, the only debt remaining will be a $50m note, and second, the cc companies will release $100m in hold-back monies back to VA. I believe I read Virgin Group intends to provide a letter of credit to satisfy the cc companies, should VA default.

Long story short, in reading the filing, it appears that post IPO the company's balance sheet will be significantly enhanced, there will be cash in the bank and the company's margins will improve, if for no other reason than the amount of interest paid will be significantly reduced. Imo, the company will be positioned to grow organically, or participate in a "friendly" merger in the future.

Again; all of this is just my opinion derived from reading posted financial documents. The author could have done the same, but probably did not want to waste an hour actually doing some critical thinking.

S

 

[waveflyer]

Pretty standard aviation reporting tz!
That's the purpose of the thread- I always get curious when the PR machine gets going in a particular direction and just wondered what current VA pilots thought

 

[SpauldingSmails]

TZ, sidebar. Was that the 2 letter ident for ATA?

 

[pilotpm]

TZ, sidebar. Was that the 2 letter ident for ATA?

As a former Tango Zulu Warrior I can say, yes sir you are correct.

 

[SpauldingSmails]

Cool. I've had the pleasure of working with a handful of ex-ATA guys at my former carrier - one went on to VA as well.

For all that happened to those guys with the collapse of their company, they took their lumps pretty well - all were a class act.

 

[bri5150]

Fwiw, the article is wrong about Vx's financials first half of this year. After 2q2014 there is a net profit of $14.6 million. I have seen one retraction.

https://www.virginamerica.com/cms/a...ica-reports-second-quarter-2014-earnings.html