Virgin America cutting capacity during Winter, offering leaves

[NEDude]

That's what I was thinking too...

Says who is the CEO (David Cush) in the very same letter the article frequently cites. The author just chose to conveniently omit the statements about third quarter profitability (as well as initial fourth quarter outlooks) because it does not align with tone of the article.

 

[Flyer1015]

One of the above posters on the first page is a PO'ed VA interview reject.

There isn't a single airline in the last 3 years that hasn't offered some type of leave. Whether it's a reduced line guarantee (40 instead of 75 for example) a whole month leave, or early retirement. My last airline also offered a leave in times we were "overstaffed" and when flying was being cut - traditionally 1st quarter. There are many other airlines that are (or have) offered temporary leaves, especially for the first quarter.

As for VA, apparently there is a new VP of Network Planning/Revenue. He's pushing for this change, and honestly, it does make financial sense. VA's first quarters have always been the worst compared to the other three quarters. By eliminating some unprofitable flying (redyes, midweek flights), VA is cutting its schedule 3% for the first quarter Jan 1 - March 30. By trimming the schedule and not paying for fuel expenses on flights where money isn't being made, the plan is to cut the overall loses that are traditionally seen in the first quarter. Note that as soon as Apr 1 comes, the flight schedule goes BACK to normal 100% operations.

So these temporary leaves are being offered only for the first quarter Jan-March, the flight schedule will be 100% normal capacity starting on Apr 1.

 

[bri5150]

And hiring pilots starts quarter 1 again as per ceo. It is interesting that the media has so much insight into our financial situation despite Virgin America being a private company.

 

[n757st]

And hiring pilots starts quarter 1 again as per ceo. It is interesting that the media has so much insight into our financial situation despite Virgin America being a private company.

The FAA requires you to report your financials, that's why the media has access to them.

 

[bri5150]

The FAA requires you to report your financials, that's why the media has access to them.

I understand that the general financials are reported. I am sure the FAA does not have access to our business plan and and all the details. Maybe I am wrong. Just for the record, I am not saying we are in a great position financially. I just don't think we will shut our doors real soon as some say/want.

 

[BuckMurdock1]

Sir, Those are IOUs. 250 thou..might want to hold onto that one

Our word is our bond!

 

[Tomct]

Finally have someone in upper mgmnt that actually knows what he is doing. Funny how everyone says we are shutting the doors...(ahem, you have all been saying that for the last 5 yrs and you are STILL WRONG!), things are going to get a lot better with this new guy and the good news....he is untouchable by the CEO. If we would have kept our original CFO, we would be leaps and bounds ahead of where we are now, but the CEO didn't like being told HOW to do his job...hence, he was sent (to spend more time with his family.)

Profitable 3rd and 4th is looking as good or better. Fix the first losses which is exactly what they are doing and this place will be heading in the right direction. There is PLENTY of money behind this place and we aren't going ANYWHERE!

Sorry to disappoint! And Yes, we have a TON of Hot Female Flight Attendants!! Of course, you ALL know that!

 

[NEDude]

The new route planner was hired directly by the BOD, against the wishes of the CEO, and the result is a lot of head butting. Or so is the word coming out of the triple nickle (HQ). But the route planner has a mandate from the board, and the experience at route planning at a very profitable airline, and he is winning out. The winter cutbacks are his plan, but so is the ramp up come spring time. Again, at least that is the word leaking out of HQ.

 

[UM#1]

What happens if they don't get enough takers on the voluntary leave offers?

They will then set a lower hour cap on the lines.

 

[climbhappy]

Spirit just received alot of good press.....their model seems to work..
40% of revenues from fees.....just like allegiant, if they relied solely on RPMs then they would not be as well off either..

this article to me says it is time to rethink your plan......

i could see a merger with spirit but the the brands are so non compatible, i quickly say ,that wouldn't work....


with 82 mil, they need and angel investor.

 

[Chairman]

Or Rebel Investor....Yep I will take that guy, but we already have him!

 

[NEDude]

Spirit just received alot of good press.....their model seems to work..
40% of revenues from fees.....just like allegiant, if they relied solely on RPMs then they would not be as well off either..

this article to me says it is time to rethink your plan......

i could see a merger with spirit but the the brands are so non compatible, i quickly say ,that wouldn't work....


with 82 mil, they need and angel investor.

I don't think the business plan needs to be reworked, but I do think the route structure needs to be reworked. There have been many missteps and poorly thought out routes. For an airline that is trying to build a following in the California business market to announce consecutive expansions into markets like Cancun, Los Cabos, Puerto Vallarta and Palm Springs, while ignoring places like PHX and DEN is not very smart IMHO. A few years ago the CEO put up a graphic of the most heavily traveled business markets from SFO and LAX and stated that those would be the markets we would be going after. Instead we spent a year going after the specialty leisure markets.

Another giant misstep IMHO was announcing YYZ. Everyone knows that from California YVR is the big market, particularly from LAX. Instead the CEO "went with his gut" and decided to try YYZ.

 

[jonjuan]

Sir, Those are IOUs. 250 thou..might want to hold onto that one

Lololol"........

http://m.youtube.com/index?&desktop_uri=/#/watch?v=7GSXbgfKFWg

 

[jonjuan]

I don't think the business plan needs to be reworked, but I do think the route structure needs to be reworked. There have been many missteps and poorly thought out routes. For an airline that is trying to build a following in the California business market to announce consecutive expansions into markets like Cancun, Los Cabos, Puerto Vallarta and Palm Springs, while ignoring places like PHX and DEN is not very smart IMHO. A few years ago the CEO put up a graphic of the most heavily traveled business markets from SFO and LAX and stated that those would be the markets we would be going after. Instead we spent a year going after the specialty leisure markets.

Another giant misstep IMHO was announcing YYZ. Everyone knows that from California YVR is the big market, particularly from LAX. Instead the CEO "went with his gut" and decided to try YYZ.

Maybe the CEO is a Rush fan?
Sounds like someone needs to toss his resume over to senior management.

 

[redflyer65]

You can add hiring CFO Peter Hunt as another bad move. Don't think that's going to work out too well.

Pulling out of SNA was probably questionable too. I don't see how you don't make money in SNA, it's on the trees there.