Virgin America orders 40 A320s

[bluechunks]

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.

 

[NEDude]

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.

 

[jonjuan]

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...

 

[LoveGun]

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.

 

[SpeedBird]

VA's current situation reminds me of this linked video...

http://www.youtube.com/watch?v=NyJkKcXYqSU

 

[BILL LUMBERG]

That's Rich....

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

Aim low and you can always beat your expectations.

 

[Green Banana]

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.

 

[LoveGun]

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.

 

[Green Banana]

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.

 

[say again]

That's Rich....

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

Aim low and you can always beat your expectations.

Hahaha, reminds me of the movie "The Ringer"