Virgin America hangs as its hedge fund owners get antsy

[tzskipper]

What questions did this answer? That Cush knows how to dodge question and give no real answers. It was simply a marketing interview hoping to draw some actual U.S. investors to bail them out.

Good or bad, Alaska doesn't do anything without researching it to death first. This includes moving into a new market, negotiations, etc...and includes pressing the DOT about Virgin possibly being in violation on foreign ownership laws. It's highly doubtful they got this ball rolling because someone in management picked up a newspaper one morning.

http://www.forbes.com/2009/03/12/al...n-markets-equity-virgin.html?feed=rss_markets

Based on the load factors (as indicated in the Forbes article), it would seem that if ALK management has researched it to death, then they must be out of ideas on how to effectively compete. It would seem that there are really only three main areas of competition: service, schedule and price, yet ALK management is intent on creating a fourth... eliminate the competition. Is this because they are out of ideas regarding the other three?...

Seriously though... The impetus of the original and subsequent complaint to the DOT was the WSJ article. That complaint has been publicly addressed by VA management (as in "nothing has changed"...). I would think that as an ALK employee, you ought to asking why ALK management cannot or will not try and address the other three areas where the two airlines compete.

Regards,

Skipper

 

[Bavarian Chef]

http://www.forbes.com/2009/03/12/al...n-markets-equity-virgin.html?feed=rss_markets

Based on the load factors (as indicated in the Forbes article), it would seem that if ALK management has researched it to death, then they must be out of ideas on how to effectively compete. It would seem that there are really only three main areas of competition: service, schedule and price, yet ALK management is intent on creating a fourth... eliminate the competition. Is this because they are out of ideas regarding the other three?...

Seriously though... The impetus of the original and subsequent complaint to the DOT was the WSJ article. That complaint has been publicly addressed by VA management (as in "nothing has changed"...). I would think that as an ALK employee, you ought to asking why ALK management cannot or will not try and address the other three areas where the two airlines compete.

Regards,

Skipper

What? Maybe the ownership is (magically) above board -- but two relatively large investors bailed.

Yep, nothing has changed.

 

[tzskipper]

What? Maybe the ownership is (magically) above board -- but two relatively large investors bailed.

Yep, nothing has changed.

That's the rub...

The WSJ says something about "...according to people familiar with the situation.".... Yet VA management says the ownership structure has not changed, indicating that the investors are still in place.

Who is telling the truth? the un-named "people familiar with the situation", or the named management of VA?

Considering the make up of VA's BOD, I would say that they are a pretty business smart group, meaning it would be very surprising that they would make any deal that would potentially put the company in harms way.

Regards,

Skipper

 

[Dizel8]

Unless the investors are worried about VA going Tango Uniform and wants their money pronto!

 

[StopNTSing]

http://www.forbes.com/2009/03/12/al...n-markets-equity-virgin.html?feed=rss_markets

Based on the load factors (as indicated in the Forbes article), it would seem that if ALK management has researched it to death, then they must be out of ideas on how to effectively compete. It would seem that there are really only three main areas of competition: service, schedule and price, yet ALK management is intent on creating a fourth... eliminate the competition. Is this because they are out of ideas regarding the other three?...

Seriously though... The impetus of the original and subsequent complaint to the DOT was the WSJ article. That complaint has been publicly addressed by VA management (as in "nothing has changed"...). I would think that as an ALK employee, you ought to asking why ALK management cannot or will not try and address the other three areas where the two airlines compete.

Regards,

Skipper

Wow....Cush himself is gracing us with posts here on FI. Whodathunkit?

 

[mvedepo]

Rumor has it we are going to be making SEA a domicile.

 

[Dizel8]

Rumor has it we are going to be making SEA a domicile.

Why? Are the unemployment benefits better up there ?

 

[mvedepo]

Does it matter? I would never live there! lol

 

[Daytonaflyer]

Sorry to hear it, guys. I was hoping VA would do well and become a solid airline in the future. Unfortunately you can't make money by flying expensive airplanes on long routes into expensive airports while charging minimal prices for tickets.
I'm absolutely convinced that VA's management has been lying in their financial reports and that they are extremely deep in debt.

 

[Q400 Gear Bitch]

Rumor has it we are going to be making SEA a domicile.

Stop teasing me!