Virgin America Cuts Airbus Order, Delays 30 Jets

[Flyer1015]

Actually, I think this works against your main point. Any potential suitor already has a res system, freq flyer plan, training programs, etc. These brought from a failed airline are a net negative, not a positive, since they would cost money to integrate or dispose of. Only slots, gates and equipment are valuable in an acquisition, and these can be obtained for far less money in a liquidation than for what it would cost to assume all that debt in an acquisition or a merger. Still not seeing it.

Rinse out the blue juice from your face, you'll see it then.

 

[jonjuan]

Actually, I think this works against your main point. Any potential suitor already has a res system, freq flyer plan, training programs, etc. These brought from a failed airline are a net negative, not a positive, since they would cost money to integrate or dispose of. Only slots, gates and equipment are valuable in an acquisition, and these can be obtained for far less money in a liquidation than for what it would cost to assume all that debt in an acquisition or a merger. Still not seeing it.

Yep- YOU get it versus some other virtual airline wannabe CEOs on here. There is very little in common VX has with B6, Spirit or DAL. The synergies with a combination are nil. Now while flyer lashes out at his "ignore the haters" mantra and regales us all with the massive experience of all at VX (as though that means anything), the facts remain that Alaska, Southwest, American, Delta, and United will not stand by and let another airline take its high yield business passengers without a massive and costly fight. The business passenger is the key to virgins growth and survival.
Like it or not, UAL, DAL, and AMR will be as healthy as they have ever been very soon and will take an even more aggressive stance at losing any sort of marketshare going forward. The only way for virgin to compete is to grow. In any case, it should be interesting.

 

[Flyer1015]

Yep- YOU get it versus some other virtual airline wannabe CEOs on here. There is very little in common VX has with B6, Spirit or DAL. The synergies with a combination are nil. Now while flyer lashes out at his "ignore the haters" mantra and regales us all with the massive experience of all at VX (as though that means anything), the facts remain that Alaska, Southwest, American, Delta, and United will not stand by and let another airline take its high yield business passengers without a massive and costly fight. The business passenger is the key to virgins growth and survival.
Like it or not, UAL, DAL, and AMR will be as healthy as they have ever been very soon and will take an even more aggressive stance at losing any sort of marketshare going forward. The only way for virgin to compete is to grow. In any case, it should be interesting.

Virtual airline forum CEOs? Hardly. The ones preaching VAs death are acting like pilot virtual CEOs. "Only way for Virgin to compete is to grow." How is it that only non-VA pilots know what's best for VAs survival? Anyway, like you said, it will be interesting.

 

[Splert]

I would be more worried if we couldn't pay our leases, rent, and fuel bills, but we are covering those costs.

9 month Trailing Operating Income for 2012 is a LOSS. Only in the 3rd quarter was VA's revenue covering its operating costs.

If I started a company with my own money.

But you didn't. VA is heavy leveraged with capital from a third party who have investors that expect a return on their investment into Cyrus.

 

[Chairman]

Just in......Next to no breaking industry intel has come from Flight Info....VX has been closing there doors for 5 years here. So there is nothing to see it will happen between now and when any of us read this retire.....

That is all

 

[Bolo]

Actually, I think this works against your main point. Any potential suitor already has a res system, freq flyer plan, training programs, etc. These brought from a failed airline are a net negative, not a positive, since they would cost money to integrate or dispose of. Only slots, gates and equipment are valuable in an acquisition, and these can be obtained for far less money in a liquidation than for what it would cost to assume all that debt in an acquisition or a merger. Still not seeing it.

Whether you like Blue Dude or not, he is right on the money with his post!

 

[Blue Dude]

Hey, what's not to like? I'm just the nicest guy you'll meet when I'm not on message boards pointing out the obvious.

 

[redflyer65]

So, you're saying that "the only way out" for the investors is success or riding it all the way down? No middle such as "cutting your losses?".
Professional investors always have an exit strategy, to include the limiting of losses. I have seen a number of posters say the investors are committed and may just have to ride all the way down so they'll keep pumping money ad naseum into it. Crazy not to have an exit strategy.

Very rare, but I agree with Jonjuan here.

So the premise is the VA investors are going to just 'ride it to zero' because they have sooo much invested?

That's a horrible investment strategy that leaves you with NOTHING in the end. I think these guys are probably smarter than that. Not comparing VA to Skybus, but when the investors pull the plug...the planes aren't going anywhere.

And, growth and a better route structure are the only thing that will most likely save VA. Both have been shelved....for now.

 

[tzskipper]

Very rare, but I agree with Jonjuan here.

So the premise is the VA investors are going to just 'ride it to zero' because they have sooo much invested?

That's a horrible investment strategy that leaves you with NOTHING in the end. I think these guys are probably smarter than that. Not comparing VA to Skybus, but when the investors pull the plug...the planes aren't going anywhere.

And, growth and a better route structure are the only thing that will most likely save VA. Both have been shelved....for now.

I have to ask the obvious (to me anyway); if the "plug" is pulled, how and what would the investors recoup in the end? The only salvation for the investors at this point (imo), is making it to an IPO (get out even?) or selling their debt at a discount to a new group of investors or another airline (take a loss).

I don't know...

S

 

[sshrae]

The firing of kd will not be accepted nor tolerated! Things must change over there or it's going to get real ugly real fast.