VA- Why an Airline that travelers Love is Falling

[Flybywire44]

If AA and US Air end up merging, I think we'd probably see at least two LCCs combine. VX/JBLU or Spirit/Allegiant.

I certainly hope so!

 

[dollacrackho]

http://mobile.bloomberg.com/news/20...s-labor-cost-on-slower-winter.html?cmpid=yhoo

 

[bri5150]

Nevermind

 

[wms]

VA also announced it will honor status from other airlines. But they'll have to honor points to really make it work.

 

[HighSpeedClimb]

Latest partner HAL

 

[cameltoad]

Doesn't appear that VA will be around long enough to enter any "merger Talks." A Hail Mary at best...

 

[Andy]

The question is whether or not VX can turn the corner on cash burn. So far it's not looking good.

2Q2011: $26M unrestricted cash on hand
3Q2011: $24M unrestricted cash on hand
Dec 2011: $150M debt facility from hedge funds
4Q2011: $160M unrestricted cash on hand
1Q2012: $111M unrestricted cash on hand
2Q2012: $82M unrestricted cash on hand
3Q2012: $75M unrestricted cash on hand

In spite of 3Q2012 having an operating profit, the cash burn was higher YoY.

Links:
http://www.virginamerica.com/press-...ts-second-quarter-2011-financial-results.html
http://www.virginamerica.com/press-...rts-third-quarter-2011-financial-results.html
http://www.bizjournals.com/sanfranc...gin-america-raises-cash-cushion.html?page=all
http://www.virginamerica.com/press-...-quarter-and-full-year-financial-results.html
http://www.prnewswire.com/news-rele...quarter-2012-financial-results-161239805.html
http://www.prnewswire.com/news-rele...quarter-2012-financial-results-171023701.html
http://www.prnewswire.com/news-rele...quarter-2012-financial-results-179638501.html