Tomct
Well-known member
- Joined
- Oct 4, 2004
- Posts
- 2,062
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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.
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.
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.
God save our gracious Queen,I am not concerned about a media outlet that thinks we need to restructure. We are private
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.![]()
I don't know what they are telling you guys, but they only just released the 2nd quarter numbers so I question how you would know they made a 3rd quarter profit. And is that "operating" profit or "actual" profit? Are these hard numbers or management spread rumors?
As for the leases... sure they could be throwing lots of money at their investors. But if they have to borrow from investors, which they clearly are, in order to pay their investors, well, in the long run that's a description of a Ponzi scheme.
I don't know what they are telling you guys, but they only just released the 2nd quarter numbers so I question how you would know they made a 3rd quarter profit. And is that "operating" profit or "actual" profit? Are these hard numbers or management spread rumors?
As for the leases... sure they could be throwing lots of money at their investors. But if they have to borrow from investors, which they clearly are, in order to pay their investors, well, in the long run that's a description of a Ponzi scheme.
Be carefull there, your {visionairy "BILLIONAIRE" who knows what it will take and how to get it there} is not without fault. He has had many ventures fail.
Virgin Cola
Virgin Vines
Virgin Vodka
Virgin Energy Shot
Virgin Ooze
Virgin Brides
Virgin Vie
Virgin Clothing
Virgin Cars
Virgin Ware
Virgin Megastore
Virgin Flowers
Virgin Pulse
Virgin Digital
Virgin Express
Virgin Charter
Virgin Student
All were started with HUGE fan fair, lost tons of money, then were sold off or shut down.
Be carefull there, your {visionairy "BILLIONAIRE" who knows what it will take and how to get it there} is not without fault. He has had many ventures fail.
Virgin Cola
Virgin Vines
Virgin Vodka
Virgin Energy Shot
Virgin Ooze
Virgin Brides
Virgin Vie
Virgin Clothing
Virgin Cars
Virgin Ware
Virgin Megastore
Virgin Flowers
Virgin Pulse
Virgin Digital
Virgin Express
Virgin Charter
Virgin Student
All were started with HUGE fan fair, lost tons of money, then were sold off or shut down.
Jet....now you are comparing Virgin with Midwest Express?? Is that a JOKE??? Here's the difference, we have a visionairy "BILLIONAIRE" who knows what it will take and how to get it there...hence the profitable 3rd quarter with the 4th to follow.
Have a nice day!![]()
SWA pay rates only became industry leading after the legacy bankruptcies post 9/11...
I will roughly summarize what the email said. It basically said we just finished the numbers for quarter 3 and they were good. We made money. Also, our projections say that quarter 4 will be even better. Then it went on to talk about the bloodbath that is 1st quarter at Virgin every year and how they are going to minimize the loss so we can put a profitable year together. That is where the talk from the media is coming from about the pull down of flying and offering leaves. It then says we need you back for quarter two when we go back to our full schedule. It was a side note from a recurrent class where the CEO said hiring pilots again in quarter 1. That would be classified as more of a rumor since I didn't hear it with my own two ears (or see with eyes).