Virgin America Cuts Airbus Order, Delays 30 Jets

[myflyby]

The CEO previously talked about a nice profit for 3Q and 4Q, now it's turned into another loss of 12.6 million? That's a big difference in just three months.

I'm not sure how things are going to turn around without growth. Good luck to all.

initially the CEO said we were supposed to make 55 million this year. And now won't even be close to breaking even. How do you miss this projection so badly? Maybe it's time to retire and get some leadership that has some clue to what's actually happening in the real world

 

[redflyer65]

initially the CEO said we were supposed to make 55 million this year. And now won't even be close to breaking even. How do you miss this projection so badly? Maybe it's time to retire and get some leadership that has some clue to what's actually happening in the real world

I found that really BIZZARE. How do you crush the dreams of your employees by saying we are going to make several million dollars, to we are cutting orders immediately and LOSING millions? Something is fishy.

 

[ualdriver]

I don't think its bizarre at all. The CEO has to say things are just hunky-dory. There are lots of employees at VA that have much more portable jobs than pilots. If the CEO "tells the truth" than they start bailing. And of course if passengers start to catch a whiff of bankruptcy from VA, they stop buying tickets. The CEO at Skybus was the same way.

Things will be just "great" until the very end. At that point, a conciliatory letter will be written by the CEO saying that things didn't work out as planned, fuel prices were too high, the government was against them from the beginning, etc., etc.

 

[redflyer65]

Yea, I guess that's cool when you don't have to report to the SEC.

Anything goes!

 

[Flyer1015]

Crush the dreams of your employees by saying we're going to make millions and then not?

Who dreams like that? Certainly no dream crushed here. You'd be unwise to believe every forward-looking statement from a CEO. Aircraft orders don't mean jack until your rear end is strapped in a new one. I set zero expectations. I haven't been disappointed yet. In case you haven't noticed, the economy sucks (still) and oil is still sky high. The deferrals were inevitable. An airline will do what it thinks is best. According to FI financial expert pilots, VA is screwed because they have lost money with their strong growth. Now that they paused the large growth phase and slowed deliveries, FI experts say VA is screwed because it needs to continue to grow. Oh well, I guess you can't win in either case. So what exactly was the point of the thread?

 

[Green Banana]

I set zero expectations. I haven't been disappointed yet.

Sounds like a great new VA slogan.

 

[Green Banana]

In case you haven't noticed, the economy sucks (still) and oil is still sky high.

Tell that to Alaska, Spirit, and Alligent. They seem to be doing fine. Highest Profits Ever.

 

[Flyer1015]

Sounds like a great new VA slogan.

That's something I view in all airlines in general. I don't go in expecting anything that can later turn out not to be true or come to fruition. Less stress.

 

[Flyer1015]

Green Banana, I guess your VA interview didn't go well in Jan 2008 huh?

http://forums.flightinfo.com/showthread.php?t=108259

 

[fam62c]

I think the CEO is talking to the employees in terms of operating profit which is not the same as net loss/profit. The company is making money from it's operations which is revenue minus operating cost but this doesn't include the cost of servicing (principal and interest payments) the debt. There is a loss at the bottom line which includes the cost of servicing the debt. So the company would be making money without the debt but the debt exists so operating profit is a somewhat irrelevant number. It would be like a household saying how well they would be doing if only they didn't have to pay the mortgage and the credit card bills.

I might be wrong but I think that accounts for the difference in numbers.

 

[Green Banana]

Green Banana, I guess your VA interview didn't go well in Jan 2008 huh?

http://forums.flightinfo.com/showthread.php?t=108259

LOL! That is a blast from the past. Thanks.

I actually got hired, but chose not to take the job. A quick read of that 2008 post shows the reasons why.

 

[Flyer1015]

LOL! That is a blast from the past. Thanks.

I actually got hired, but chose not to take the job. A quick read of that 2008 post shows the reasons why.

Sure you did.

That's why:

Yes VA pay is lower that most. but where I am it is a 12 year upgrade and reserve is 3 years. At VA I can get a line in a month, upgrade in 1 year and make more at their low captain pay than at my "Major Airline" FO pay. If VA stays around they will migrate to industry standard and the pilots will unionise if not treated fairly.

All those predictions for you would have been true, and you would have been a senior Captain right now. But of course, "you turned it down" based on what some ALPA chest-thumpers posted on that thread. Right.

 

[Green Banana]

Sure you did.

That's why:



All those predictions for you would have been true, and you would have been a senior Captain right now. But of course, "you turned it down" based on what some ALPA chest-thumpers posted on that thread. Right.

Relax, I am still at my Major airline with a 12 year upgrade, my pension, and ALPA chest-thumpers. All those predictions have come true. I am now on 5 yr pay and off reserve. You are correct. If I took the VA offer I would be a senior captain. The fact is my airline just ordered 50 more aircraft to be delivered before VA gets its first NEO and is making more money than any time in its 80 year history. VA has lost $800,000,000.00 and is deferring aircraft. Was it the right choice? Ask me when I retire. I'm comfortable with my choice so far.

 

[jonjuan]

I think the CEO is talking to the employees in terms of operating profit which is not the same as net loss/profit. The company is making money from it's operations which is revenue minus operating cost but this doesn't include the cost of servicing (principal and interest payments) the debt. There is a loss at the bottom line which includes the cost of servicing the debt. So the company would be making money without the debt but the debt exists so operating profit is a somewhat irrelevant number. It would be like a household saying how well they would be doing if only they didn't have to pay the mortgage and the credit card bills.

I might be wrong but I think that accounts for the difference in numbers.

Good lord. Stick to your day job.

 

[Splert]

Good lord. Stick to your day job.

He was spot on Gilligan.