Despite my history of being a Virgin cheerleader, I will admit this is bad news. My honest opinion is that the board/investors are preparing for a sale or merger. We have all known the intent of the investors was to start and IPO as quickly as possible. This was not a long term plan for them. The market is bad for IPOs and the looming threat of a fiscal cliff has ensured it will not be good for IPOs for a while longer. So the only way for the investors to get a quick return is to sell to another company. How do you make yourself attractive to sell? Reduce your financial obligations as much as possible. With the deferrals VX can offer a decent presence in SFO and LAX and lower long term financial obligations. I doubt we will see VX around in its present form by this time next year. We will either a be a subsidiary of Delta and being slowly absorbed, or you will see us in a two or three way hookup with JetBlue and/or Frontier.
This is a beauty!! I really find this stuff interesting from last year. This post was almost exactly a year ago. I don't post this to prove anyone wrong, but it is just interesting looking at predictions just after the aircraft deferral.