Virgin America Reports First Quarter 2011 Financial Results

[jayme]

Just FYI, the credit card companies have been withholding 100% since our inception. They don't have the ability to do to us what they did to Frontier.

 

[clickclickboom]

tomcat dont be foolish. i am thrilled for all the juice that flows out of you but the reality is that the bod and management treats your beloved airline nothing more than a business plan. if the plan dont work the doors get closed.

in this industry there is only so much juggling a company can do to be successful.

you could shut your doors tomorrow or be here in 10 years making coin but i am sure your optimism far exceeds managements. and considering that you have lost nearly three quarters of a billion dollars since inception your strong opinions are like the drunk guy in the bar talking about the bullseye he is going to get on the dartboard

 

[Tomct]

tomcat dont be foolish. i am thrilled for all the juice that flows out of you but the reality is that the bod and management treats your beloved airline nothing more than a business plan. if the plan dont work the doors get closed.

in this industry there is only so much juggling a company can do to be successful.

you could shut your doors tomorrow or be here in 10 years making coin but i am sure your optimism far exceeds managements. and considering that you have lost nearly three quarters of a billion dollars since inception your strong opinions are like the drunk guy in the bar talking about the bullseye he is going to get on the dartboard

Well, then, here is the bulls eye Click. See you in 10 yrs and we will still be going strong. But Thanks for your concern. As far as my optimism outpacing mngmnt, well lets just say I don't see them dropping as much coin on the improvements for our airplanes to come along with better products for on board amenities if they thought this place was going away. Again, thanks for your concern.

Fubi, for your information, Virgin Blue is going strong and actually getting bigger. Keep using Nigeria as an excuse though...now you are comparing the market in Africa with the U.S.? That's pretty weak....even for you! :laugh:

 

[Lampshade]

[FONT=ARIAL,]$25m was in unrestricted cash. (down $5mil from Q4)!!!! Getn' down to the nitty gritty!

[/FONT][FONT=Verdana,Helvetica,Arial][SIZE=-1][FONT=ARIAL,]For 2011 Q1:

Airline/ Operating margin
UA 1.4%
DL -1.1%
AA -4.2%
US -1.2%
WN 3.7%
B6 4.5%
AS 14.9%
FL -5.5%

VX -14.7%[/FONT][/SIZE][/FONT]

 

[weasel_lips]

Virgin America CFO Quits




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SAN FRANCISCOVirgin America said Thursday that its chief financial officer is leaving the airline company and will be replaced by the CFO from Pinnacle Airlines Corp.
Privately held Virgin America pointed out that its next CFO has experience leading an airline preparing to sell stock to the public.
Peter D. Hunt will become CFO and senior vice president effective July 11, replacing Holly Nelson, who is leaving "to pursue other opportunities," Virgin America said.
Hunt has spent six years at Pinnacle, which operates regional flights for Delta, Continental and US Airways through subsidiaries that include Colgan Air and Mesaba Aviation.
CEO David Cush said Hunt's background would help Virgin, "specifically in leading a growing airline as it prepares to enter the public markets."
Officials at Virgin America, which began flying in 2007 and is 25 percent owned by Richard Branson's Virgin Group, have talked of going public but not until at least 2013.
Last week, Spirit Airlines Inc. went public but only after cutting the opening price for its shares. The shares fell further on the first day of trading.
Most U.S. airlines were profitable last year but are struggling with higher fuel costs in 2011.
Virgin America lost $68.7 million last year on revenue of $724 million, compared with a loss of $80.8 million on $547.6 million in revenue in 2009.

 

[weasel_lips]

Looks like Virgin is going to try and raise cash with an IPO? That must mean the private investment money is drying up.....

 

[jayme]

Or that they always were going to go public (like pretty much every other large airline that has ever existed.)

 

[Blue Dude]

Most airlines that IPO are profitable first. This looks more like a Hail Mary to me. Best of luck though.

 

[Fubijaakr]

[FONT=Verdana,Helvetica,Arial][SIZE=-1][FONT=ARIAL,]VX -14.7%[/FONT][/SIZE][/FONT]

Virgin America lost $68.7 million last year on revenue of $724 million, compared with a loss of $80.8 million on $547.6 million in revenue in 2009.

Let's see, the cash is draining away. It doesn't really matter how much money you put through the system, if you don't make a profit, you won't be around long.

Its simple economics. Even the richest of benefactors gets tired of throwing their money down a rathole eventually.

 

[jayme]

Most airlines that IPO are profitable first. This looks more like a Hail Mary to me. Best of luck though.

What seems like a Hail Mary? Having a plan to IPO some day? When jetBlue devised a plan to go public, was that a Hail Mary? It seems to me that every big airline that ever existed made a plan to go public.

It has been explained to every employee here that we need to have a succesful company that people want to invest in before we can sell stock, so this isn't something that will happen any time soon.

 

[B6Busdriver]

What seems like a Hail Mary? Having a plan to IPO some day? When jetBlue devised a plan to go public, was that a Hail Mary? It seems to me that every big airline that ever existed made a plan to go public.

The difference is JetBlue was profitable when they went public. BIG difference. Please don't take it personal.

 

[jayme]

We'd be stupid to go public before becoming profitable. I don't know why you guys seem to think we'd IPO before that. Nobody from VA said we would.

 

[jayme]

We all hear what we want to, don't we?

Tomct reads a dismal financial report and gleans some shiny nuggets of gold (RASM increased at a higher rate than our competitors.)

B6Busdriver reads a press release regarding a change of CFO and concludes we are going to IPO tomorrow as a "Hail Mary."

Your motivation is clear, so your request I not take it personally rings a little hollow.

 

[B6Busdriver]

What seems like a Hail Mary? Having a plan to IPO some day? When jetBlue devised a plan to go public, was that a Hail Mary? It seems to me that every big airline that ever existed made a plan to go public.

It has been explained to every employee here that we need to have a succesful company that people want to invest in before we can sell stock, so this isn't something that will happen any time soon.

Sorry you took it that way. Above is your quote. Your above post was quite vague and seemed to justify a Virgin IPO now because JetBlue went public early on. Again, not personal.

 

[bizicmo]

Maybe virgin could become profitable if everyone there took a paycut?

 

[JetFumes]

Guys, guys, guys, don't worry. In fact, to Virgin management,......spend away! That's right, spend it all. Get as many routes into profitability as you can before you go belly up, that way jetblue can come in and buy you at fire sale prices. I'm sure B6 management is just waiting for events to unfold so we can get some of those planes and gates in SFO! VX pilots, you will just end up at b6, so again don't worry!

 

[Busdriver320]

Are any of you guys on the BOD? Are any of you privvy to the investor's books? Just because the "operation is losing money" doesn't mean the whole thing is. It's a world of shell games, anonymous holding companies, aircraft leasing companies that are no more than a suite in some Vegas strip mall with an address, and on and on. VA will "lose money" up until about a year before they want to IPO, then the profits will soar, making Wall Street salivate. There is no way the investors would have stayed in this long unless they were getting their money back. VA is privately held, they can report whatever they want to make anyone believe WHAT they want.

 

[weasel_lips]

So all those finanical reports filed with the DOT are fabricated?

Right!,.............

 

[pilotpm]

When I interviewed, I was told that the business plan was for no profit for the first five years while they grew to the critical mass point. All our infrastructure is built and staffed for an airline of 60 plus aircraft. The investors are well aware of how we are doing. So long as we are within our financial projections (everything we are told is that we are) Then I won't sweat it. When they cancel new purchases for the likes of simulators and new cabin mock up trainers and aircraft, That's when I'll start to worry.

 

[B6Busdriver]

Guys, guys, guys, don't worry. In fact, to Virgin management,......spend away! That's right, spend it all. Get as many routes into profitability as you can before you go belly up, that way jetblue can come in and buy you at fire sale prices. I'm sure B6 management is just waiting for events to unfold so we can get some of those planes and gates in SFO! VX pilots, you will just end up at b6, so again don't worry!

Sorry VA guys and gals, we have our 10%.