Virgin America Cuts Airbus Order, Delays 30 Jets

[redflyer65]

Yea. The dot-com era IPO's turned out really well.

Carry on.

 

[hyflyin]

Yea. The dot-com era IPO's turned out really well.

Carry on.

It did for the 1% and a few more.

 

[climbhappy]

what's you point? southwest went public in 1971 and i assure you they had debt on their balance sheet.....If VA is making a quarterly profit.. which they are...then what they are doing now is simply a prelude to getting a better financial condition to go public some time later..or so it would seem..

 

[ackattacker]

what's you point? southwest went public in 1971 and i assure you they had debt on their balance sheet.....If VA is making a quarterly profit.. which they are...then what they are doing now is simply a prelude to getting a better financial condition to go public some time later..or so it would seem..

Huh.

The first and only time Virgin America reported a quarterly profit was in the 3rd quarter of 2010. Until they show a real profit, their financial situation is deteriorating, not improving.

When Southwest airlines was formed and almost immediately went public in 1971 they offered 650,000 shares at $11 a share. That's $7.1 million market capitalization, which pretty handily covered their startup expenses for their 3 airplane operation. I don't think you want to make a comparison there.

Nobody has claimed a company never went public when carrying debt. That would be an absurd claim. I think someone claimed no company ever had a successful IPO while so deeply in the hole. I think that's probably a valid claim. Debt doesn't just magically go away in an IPO, the IPO would have to raise enough money to pay it off and also fund future growth. In this case we are talking about in the range of over $1 billion dollars (cue Dr. Evil finger gesture). Their operation is too small to support such a valuation. Delta airlines, currently the most valuable airline in the US in terms of market capitalization, is hugely profitable, is valued over $8 billion dollars, and flies roughly 250 *billion* airline seat miles annually. Virgin America flies roughly 10 billion airline seat miles. It's only 4 percent of the size of Delta, so there's no way they're 12% of the value particularly when they can't make dime one.

 

[climbhappy]

the only reason i commented was a guy said

no company has ever gone public riddled with debt

just reab back a few pages.... his understanding of what debt is ,also, is totally misunderstood.

debt is not equity...he seems to think it is when he said

VAs debt is owed to its investors

if the investors received stock for their cash, they are owed nothing unless they purchase bonds the company issues, or buy more stock.....shares of stocks is not debt...

really? i thought debt was owed to lenders such as banks...since the company is private , we dont't know who carries the debt...banks? hedge funds? or even richard branson personally....who knows...

 

[Flyer1015]

You flightinfo financial gurus. You know the difference between a pilot and a CEO? A CEO doesn't go pretending to be a pilot.


On a separate note, no one here has any clue as to what will happen with VA. The Finance VP is ex Pinnacle. He led Pinnacle down the path it did, and he was the first high level management to bail out of Pinnacle. Its no surprise that someone with knowledge of internal financial matters would leave early because he saw it coming. If he leaves, then that could be history repeating. So far, he's staying put. The only recent VP departure has been Inflight, and that was for a higher paying position with VA's latest codeshare partner in the US.

Also, it will be worth noting what happens with VS, Delta, and AF. Whatever tie-up that happens will have implications (or consequences) for VA. No one said it would be a boring career.

 

[climbhappy]

flyer dude, this is basic accounting...if you took it in college, it's pretty darn simple...you dont to be a CPA to understand the difference between an asset or a liability...

:beer:

 

[rjpilot7667]

You flightinfo financial gurus. You know the difference between a pilot and a CEO? A CEO doesn't go pretending to be a pilot.

I guess you've never flown business jets. Especially with an owner operator.

 

[Flyer1015]

I guess you've never flown business jets. Especially with an owner operator.

I was referring to the topic in hand regarding a Part 121 airline. I'm aware that very small businesses have some owners (CEOs) pilots acting as PIC, with a hired SIC in the right seat.

 

[jonjuan]

You flightinfo financial gurus. You know the difference between a pilot and a CEO? A CEO doesn't go pretending to be a pilot.


On a separate note, no one here has any clue as to what will happen with VA. The Finance VP is ex Pinnacle. He led Pinnacle down the path it did, and he was the first high level management to bail out of Pinnacle. Its no surprise that someone with knowledge of internal financial matters would leave early because he saw it coming. If he leaves, then that could be history repeating. So far, he's staying put. The only recent VP departure has been Inflight, and that was for a higher paying position with VA's latest codeshare partner in the US.

Also, it will be worth noting what happens with VS, Delta, and AF. Whatever tie-up that happens will have implications (or consequences) for VA. No one said it would be a boring career.

Well that's one way to connect the dots-to determine whether VA is going to make it based on whether a person leaves the company or not. Lol.....
There will be no ipo. Not anywhere near current debt and income levels, at least. It only is looking worse.

 

[Jetjockey]

Yea. The dot-com era IPO's turned out really well.

Carry on.

Tell that to Mark Cuban.

 

[Flyer1015]

Well that's one way to connect the dots-to determine whether VA is going to make it based on whether a person leaves the company or not. Lol.....
There will be no ipo. Not anywhere near current debt and income levels, at least. It only is looking worse.

No, that's not a way to connect any real dots. Just casual talk, like every other post in this thread. There will be no IPO for the foreseeable future. Good. I'd rather it still be owned partially by Branson as opposed to attempt an ill-timed IPO and have that go bust. VX is still around, and they just announced new service to Newark in April, our 20th destination. No one knows what the future will bring. You, a corporate pilot not in the Part 121 world, should know that.

 

[HA25]

I guess you've never flown business jets. Especially with an owner operator.

exactly!

 

[redflyer65]

Tell that to Mark Cuban.

One person out of millions that lost billions?

You have better odds in the lottery.

 

[Jetjockey]

One person out of millions that lost billions?

You have better odds in the lottery.

Looks like he has company on that list. http://www.incomediary.com/top-young-entrepreneurs