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Virgin America orders 40 A320s

  • Thread starter Thread starter jonjuan
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I thought you were not in support of jumpseat wars? So any Union count if is not ALPA are you going to deny AMR, SWA, F9, Any teamsters carrier. Sure a lot of Mainline pilots in the JS on companies like SkyW would hate to see them not get to work since much of the flying is on RJ's now. To each there own but to deny a fellow pilot the jumpseat is pathetic. I didn't asked to be furloughed does that mean you will deny me!

I don't care what union a pilot group is affiliated with. Become a branch of the Association of Dog Walkers, I don't care. Have a crappy initial contract, I don't care, just make the effort and get to that first step of certifying a union with the Department of Labor.

Read my post again. My "3 year" limit starts tomorrow or sometime in the future with Carrier XYZ, not sometime in the past.

Hope that makes it a little more clear. By the way, I'm not ALPA.
 
It's not even a real order.

It's just an MOU.

Subject to change, ratification and more importantly a down payment.
 
Maybe not the only ones...

From the DAL CEO:

"...But Delta’s chief executive, Richard H. Anderson, indicated on a conference call with analysts on Monday that Delta’s capacity would grow 5 to 7 percent in the fourth quarter to make up for last year’s sharp pullback. He also forecast capacity growth of 1 to 3 percent in 2011. Delta is not planning to increase the number of planes it has; rather, it wants to fly them more often."

http://www.nytimes.com/2010/07/20/business/20air.html?partner=yahoofinance

Hey TZ.....

All those airplanes were pulled out of service 2 years ago when VA had one plane. The capacity rise comes from planes back from the desert, that's it!

Nobody on my side of the house is running around Farnborough purchasing 60 jets or anything.....
 
No Jumpseat wars.....UNSAT!

They can get enough $hit when people see them in the terminal and see those "hip" unis.
 
So I think I read that right. They lost $20 million for Q2 and only have about $20 million left in the bank.

No you read it wrong. Q2 results have not been released. As of the last financial report, Q1, we had $28 million in cash and $108 million in total liquidity. Also as of Q1, financials were ahead of planned and were on track for a total year profit. Funny how everyone seems to forget that last part when predicting our demise - our financial performance is ahead of expectations and we will make a profit for the year.
 
No Jumpseat wars.....UNSAT!

They can get enough $hit when people see them in the terminal and see those "hip" unis.


Have yet to hear anything negative said about the uniforms other than here on FI. Are you guys pilots or auditioning for new episodes of 'Queer eye for the straight guy' with all your fashion sense?
 
Ding Ding Ding!

It's not even a real order.

It's just an MOU.

Subject to change, ratification and more importantly a down payment.

Virgin America Signs MOU for 40 More Airbus A320 Aircraft

News >> Civil Aviation >> Sales & Contracts Released on Thursday, July 22, 2010



Virgin America set to acquire 40 more Airbus A320 Aircraft
Virgin America and Airbus signed a non-binding Memorandum of Understanding (MoU) for 40 Airbus A320 aircraft today at the Farnborough International Air Show.


The order will triple Virgin America's fleet going forward. The airline indicated it would announce its choice of engines for the additional aircraft once the purchase agreement is finalized.

"The low operating costs and cabin comfort of the A320 fit our growth plans as well as our guests' high expectations for comfort, style and efficiency in their travel," said Virgin America President and CEO David Cush.

"A repeat order from Virgin America � a U.S. airline growing quickly both in terms of their route network and their reputation for excellent service � is a great affirmation of the benefits of operating the A320 Family," said John Leahy, Airbus Chief Operating Officer, Customers. "We are very pleased they have chosen to expand their reach with even more of our aircraft, and we look forward to continuing to support their Airbus fleet."

Virgin America already operates 28 Airbus aircraft (10 A319s and 18 A320s) and will put a total of 22 more purchased and leased A320s into service by the end of 2012. Once finalized, the MoU announced today would expand the Virgin America fleet to a total of 90 Airbus aircraft.

What better way for both Airbus and Virgin America to come away with some big press releases.

My understanding of a non-binding MOU is that nothing is required to be exercised and no money is lost if they are not. No surprise the official Virgin America Press Release (even the one released internally prior) spin this as much as possible that they are orders while all of the actual aviation news companies clearly report it for what it is...a possible order.
 
Yeah Branson isn't exactly press shy.

Got to make a little noise at the Air Show.

Anything is possible. Time will tell.
 
doesn't this belong on the LCC board?

Yay, 400 more of the worst paid, non-union, pilots in this country get to be added to the dime-a-dozen ranks.
 
doesn't this belong on the LCC board?

Yay, 400 more of the worst paid, non-union, pilots in this country get to be added to the dime-a-dozen ranks.

WN was once here as was B6.....tick, tock, tick, tock....
 
WN was once here as was B6.....tick, tock, tick, tock....
Yes, but BOTH of those companies were also profitable, and in B6's case the first pay raise was already announced at this point on their timeline.

In contrast VA is burning cash with their -15% operating margin so they are much more concerned about making payroll and debt payments than talking about pilot pay raises anytime soon.

VA has an outstanding onboard product but so far it seems like passengers are not willing to pay for it. The planes are full but everybody is on a cheap ticket--not a good combination even for a low cost operation.

Just saying.
 
Yes, but BOTH of those companies were also profitable, and in B6's case the first pay raise was already announced at this point on their timeline.

In contrast VA is burning cash with their -15% operating margin so they are much more concerned about making payroll and debt payments than talking about pilot pay raises anytime soon.

VA has an outstanding onboard product but so far it seems like passengers are not willing to pay for it. The planes are full but everybody is on a cheap ticket--not a good combination even for a low cost operation.

Just saying.

Obviously you missed a few things in the recent press releases:
Our financial performance is ahead of expectations and we will make a profit for the year.
 
Yes, but BOTH of those companies were also profitable, and in B6's case the first pay raise was already announced at this point on their timeline.

In contrast VA is burning cash with their -15% operating margin so they are much more concerned about making payroll and debt payments than talking about pilot pay raises anytime soon.

VA has an outstanding onboard product but so far it seems like passengers are not willing to pay for it. The planes are full but everybody is on a cheap ticket--not a good combination even for a low cost operation.

Just saying.

If B6 or WN were started when VX were started and in the same competitive environment, their profits or lack thereof, would undoubtedly be similar. Are you implying VX is mismanaging their resources and is the reason for their failure to make a profit?
Shouldn't the employees decide that they have/have not spent enough time there and then move on when the company is unsalvageable? I doubt any of their pilots are leaving for "better opportunities." What does that tell you?
BTW, they do sell quite a few high margin premium seats. $3,000 RT F seats certainly makes up for their cheaper Y fares.

Just saying...
 
Yes, but BOTH of those companies were also profitable, and in B6's case the first pay raise was already announced at this point on their timeline.

In contrast VA is burning cash with their -15% operating margin so they are much more concerned about making payroll and debt payments than talking about pilot pay raises anytime soon.


Just saying.

VA gave the pilots and all front line employees a raise in June and increased our 401k match this spring. VA also recently bought new scheduling software. VA just recently spent money updating our industry leading inflight entertainment system. We are building a new sim training building in San Fran. And, VA is once again paying for every single employee to come to San Fran for our annual pep rally this fall. Next month VA is holding our three year old birthday bash complete with a carnival for the kids and free booze for the adults.

Sounds like we're teetering on the edge of bankruptcy.

Oh, I forgot to list some other expenditures... VA recently increased our expensive San Fran office space by 1/3. They are buying new uniforms for all the crew members this winter. A few months ago they increased the minimum days off for reserve pilots and FAs.

For those of you that worked at Skybus; is this what it looked like right before they turned out the lights?

Before you answer, I forgot to list a couple other developments... We are taking delivery of six more aircraft this year, and twelve next year. We just started service to Toronto and we're starting service to Orlando, Cancun, and Cabo before years end. We are also starting service to one other yet to be announced city before years end.

Let's not forget about Terminal 2 in SFO. VA is moving into terminal 2 when construction is complete next spring. The city built the terminal to VA's specs. It's supposed to be the prettiest terminal in the United States with sweeping views of the bay. I suppose that's a lot like Skybus. Skybus pax would get a nice view of Columbus from the top of the airstairs because the company was too cheap to pay for a Jet bridge.
 
That's Rich....

Comparing yourselves to Skybus and saying "we are much better off!"

Aim low and you can always beat your expectations.
 
VA gave the pilots and all front line employees a raise in June and increased our 401k match this spring. VA also recently bought new scheduling software. VA just recently spent money updating our industry leading inflight entertainment system. We are building a new sim training building in San Fran. And, VA is once again paying for every single employee to come to San Fran for our annual pep rally this fall. Next month VA is holding our three year old birthday bash complete with a carnival for the kids and free booze for the adults.

Sounds like we're teetering on the edge of bankruptcy.

Oh, I forgot to list some other expenditures... VA recently increased our expensive San Fran office space by 1/3. They are buying new uniforms for all the crew members this winter. A few months ago they increased the minimum days off for reserve pilots and As.

For those of you that worked at Skybus; is this what it looked like right before they turned out the lights?

Before you answer, I forgot to list a couple other developments... We are taking delivery of six more aircraft this year, and twelve next year. We just started service to Toronto and we're starting service to Orlando, Cancun, and Cabo before years end. We are also starting service to one other yet to be announced city before years end.

Let's not forget about Terminal 2 in SFO. VA is moving into terminal 2 when construction is complete next spring. The city built the terminal toVA's specs. It's supposed to be the prettiest terminal in the United States with sweeping views of the bay. I suppose that's a lot like Skybus. Skybus pax would get a nice view of Columbus from the top of the airstairs because the company was too cheap to pay for a Jet bridge.

You really do not get it, do you. This company has NEVER MADE A PROFIT! It's operation does not cover its basic operating costs.

Are you really bragging about how much money you are spending? Really? New buildings, Sims, Airplanes, Raise, Uniforms, Parties, Inflight Entertainment? And you think this is GOOD? That is like me saying "I just got out of school with $300,000 in debt. Now I am going to buy a BMW, Threw myself a party, Buy a condo and a jet ski! I must be successful, Right?"

Wow, I hope spending into success works for you.
 
You really do not get it, do you. This company has NEVER MADE A PROFIT! It's operation does not cover its basic operating costs.

In response I will have to echo you and say, "You really don't get it, do you."

Our management team isn't so stupid as to spend all this money on nonessential things if we were running out of cash. That was the point of my post. That's why I listed a bunch of nonessential expenditures. Our board of directors is made up of our investors. Do you think they would throw their money down a pit for no reason? There's a big difference between us and a publicly traded company. If we go under, rather than grabbing a golden parachute our board loses their money. It's a huge sign of confidence that they continue to spend like crazy.

I suppose when you spend a career enslaved by a legacy airline it is hard for you to think in any other terms.
 
It's a huge sign of confidence that they continue to spend like crazy.

Well, at least you have confidence. For your sake, I hope all that spending and confidence pays off the hundreds of millions of dollars of debt VA has. I just don't think that type of operating logic leads to long term success.
 

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