Virgin America hangs as its hedge fund owners get antsy

[Horrido]

I wonder what Southwest paid their employees/pilots when they started 25 years ago and where a crappy outfit with a couple of old planes. Now they are a respectable airline with great work rules.I just do not understand why a 1.5 year old airline is compared to companies that are around for years and have gone through several contract negotiations to get where they are now....
I hope VA survives, have flown on them several times and they are the best. can't stand the other carriers with old equipment and employees with sh$tty attitudes, oh wait the all work for excellent wages and workrules, not....

Oh no Mplex...you're going to ruin all the "my airline's better than yours" banter with talk like that.

 

[Bavarian Chef]

That wasn't in response to you. Our standard daily rig is the greater of what you work, where scheduled to work, or 3.5 hours. We get 125% over 82 hours or when offered by scheduling.

Vacation is essentially 1 week of vacation for every year with the company.

We have unlimited sick time.

You sound like the band on the Titanic.

 

[flyipilot]

Based on the news today about VA. I am sure they will find new investors and continue normal ops. But, I have to say the one tiny thing that stands out is that VA is not completely honest. IN a news report dated March 3rd. the denied to the death that the (2) US investors would be bailing out. Today they did. I am not that naive to think that VA had no clue as to this March 3rd. Please. It just goes to show that VA management is no different than any other airlines. VA really is not a different airline after all. They hide the truth and tried to hide their financials. It is sad because I really thought they would be different. Just smoke and mirrors and some mood lighting. Take heart employees....VA is lieing to you all about their future. I wish them no ill, just be honest. You knew you were going to lose your investors and you lied about it a week ago. (sigh)

 

[Horrido]

LOL...never mind...it's still going strong.

 

[metroplex]

horrido, how was Midwest treating you....?

 

[Singlecoil]

I find it very interesting that in the linked SF Chronicle article above that Cush was quoted saying that (and I paraphrase) look, we are still 75% controlled by Americans that hasn't changed. What he pointedly left out was the fact that there are two requirements. You have to be 75% controlled by Americans and 51% owned by Americans. Why didn't he say that they were still 51% owned by Americans? Because they aren't.

 

[tzskipper]

I find it very interesting that in the linked SF Chronicle article above that Cush was quoted saying that (and I paraphrase) look, we are still 75% controlled by Americans that hasn't changed. What he pointedly left out was the fact that there are two requirements. You have to be 75% controlled by Americans and 51% owned by Americans. Why didn't he say that they were still 51% owned by Americans? Because they aren't.

Maybe this interview will answer a few questions:

http://cbs5.com/video/[email protected]

What I don't get is that ALK management is making their case based on a newspaper article. Any idea of what their response will be if/when the DOT rules that there is no issue?

Skipper

 

[Bavarian Chef]

LOL...never mind...it's still going strong.

By that you mean still losing investor money?

Huh?

 

[Chief Pilot]

Maybe this interview will answer a few questions:

http://cbs5.com/video/[email protected]

What I don't get is that ALK management is making their case based on a newspaper article. Any idea of what their response will be if/when the DOT rules that there is no issue?

Skipper

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.

 

[Bavarian Chef]

By that you mean still losing investor money?

Huh?

Sorry, it's flightinfo ... I should have said "loosing".

 

[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?