Virgin America Revenue...

[TCBKING]

I see V.A. has lost alot of money since they Began flying.. (661 mil since Aug 2007). Is that due to startup costs? Do you think they will start making money soon?

 

[jayme]

Management is predicting a profit for 2012, just like they predicted a profit for 2011 and that didn't work out so well. For exact numbers, Fubijaakr is probably the best autthority. I'm sure he'll chime in soon.

Our unit revenue is approaching industry average, and our unit cost is coming down. The problem is how expensive and time-consuming it is to install our fancy interiors. They take about 30 days, during which we pay for the airplane to sit idle, and the installation. Then we put it on a new route that we have to discount heavily to get people to try it. All of our routes that are at least a year old are actually profitable, but the 5 or so new routes and the down-time for airplane mods overcame that profit and we posted big losses. Next year we are looking at adding only 2 cities. If all 16 "mature" routes are profitable next year too, we should be in decent shape.

 

[Fubijaakr]

Or as long as you get Sir Dick to keep pouring cash down the rathole.

 

[TCBKING]

Great Info Jayme.. Thanks..

As for the other dick with nothing but horrible things to say about your company, Its pretty obvious he has nothing worthy to say. It makes it pretty easy to ignore him, to get the info i need. Thanks again

 

[Fubijaakr]

Great. Another RJ wanna be.

 

[jayme]

I have him on "ignore." It makes it easier to avoid the self-loathing that I used to feel after getting sucked into a "debate" with him. You know... that "arguing with a fool" saying?

 

[NEDude]

Or as long as you get Sir Dick to keep pouring cash down the rathole.

Thanks for chiming in with your same old tired mantra. Can you at least try to come up with something new? Or would that strain your brain too much?

 

[jayme]

VA just announced a $16 million operating profit, $3 million net loss for the 3rd qtr.

 

[Fubijaakr]

Nice. Another net loss.

 

[ualdriver]

Management is predicting a profit for 2012, just like they predicted a profit for 2011 and that didn't work out so well. For exact numbers, Fubijaakr is probably the best autthority. I'm sure he'll chime in soon.

Our unit revenue is approaching industry average, and our unit cost is coming down. The problem is how expensive and time-consuming it is to install our fancy interiors. They take about 30 days, during which we pay for the airplane to sit idle, and the installation. Then we put it on a new route that we have to discount heavily to get people to try it. All of our routes that are at least a year old are actually profitable, but the 5 or so new routes and the down-time for airplane mods overcame that profit and we posted big losses. Next year we are looking at adding only 2 cities. If all 16 "mature" routes are profitable next year too, we should be in decent shape.

Sorry, the problems Virgin has ARE NOT due to putting in aircraft interiors. Every airline bears that cost. United is completely redesigning their first and business class product, but that doesn't mean the whole airline loses money. There are deep, structural issues at Virgin that are broken. For the 9 months ending Sept 30, you guys had a net loss of 70M on 760M of revenue. You lost money on what should be your strongest quarter. I was very surprised someone was willing to loan Virgin 150M. It is either at a sky high interest rate or it has so many strings attached to it that it would make your CFO look like one of those old time string puppets.

Guys, when the other airlines start hiring in 2012 with retirements and such, GET OUT while you can. You might think I am the biggest tool on the forum, but the numbers don't lie. Go on your website and go to the about us section on the website then look at your most recent press release. Look at the Consolidated Statement of Operations. It is all easy math.