FreequentFlier From United States of America, joined Feb 2007, 804 posts, RR: 6 Posted (5 years 2 weeks 2 days 1 hour ago) and read 1060 times:
It seems like VX continues to offer sale after sale, or offers regular fares that most would consider introductory level. Considering VX isn't fuel hedging and has been around for almost a year now, does it's investors even care how much money it's likely burning through? I say likely because they don't even want to reveal their Form 41 data to the public.
Someone at FlyerTalk mentioned they just did a job posting for a Director of Environmental Sustainability in Flight. While this may be an admirable goal, does an airline that's losing money hand over fist need a director level position considering they only have a few planes to begin with and their "impact" on the environment is basically negligeable? I'm just curious because it seems like VX has no real direction. Perhaps someone with more knowledge of the carrier could enlighten me.
Cubsrule From United States of America, joined May 2004, 21242 posts, RR: 19 Reply 1, posted (5 years 2 weeks 2 days 1 hour ago) and read 1057 times:
Quoting FreequentFlier (Thread starter): Considering VX isn't fuel hedging and has been around for almost a year now, does it's investors even care how much money it's likely burning through?
Doesn't ANY investor care about how much money his company is burning through?
I can't decide whether I miss the tulip or the bowling shoe more
KELPkid From United States of America, joined Nov 2005, 5932 posts, RR: 4 Reply 2, posted (5 years 2 weeks 2 days 1 hour ago) and read 1040 times:
Quoting Cubsrule (Reply 1): Doesn't ANY investor care about how much money his company is burning through?
Only when the dividends per share, expected profit, etc. aren't up to snuff And believe you me, if a private investor was told that they would see x amount of dollars per share investment return, and the money is not there, they will be quite upset...
Celebrating the birth of KELPkidJR on August 5, 2009 :-)
FreequentFlier From United States of America, joined Feb 2007, 804 posts, RR: 6 Reply 3, posted (5 years 2 weeks 2 days ago) and read 1040 times:
Quoting Cubsrule (Reply 1): Doesn't ANY investor care about how much money his company is burning through?
One would think. And while of course investors can't micromanage a company to the point of determining what jobs it can post, a director of environmental sustainability for an airline with only 10 planes or so seems a little odd, no? Is VX just a pride thing for SRB at this point?
It has been SRB's dream to launch a U.S. carrier for quite some time, and how he has finally done it. Nonetheless, there is no way in hell that the airline is making money by offering transcons on JFK/IAD-LAX/SFO when oil is $123/bbl. If JetBlue, which has a lower cost structure as well as plenty of connections at JFK decided to pull its LAX flights so close to start-up, then it is clear indication that transcontinental flights are simply not efficient nor profitable in this environment. VX adding frequencies to its transcon flights is simply to satisfy SRB's ego; IAD loads as well as yields have been horrendous, and there is no way that VX is making money on its JFK flights with all that competition.
So...to answer the question: do VX's investors intend to earn a return? Probably not through VX, but maybe through the Virgin brand itself. Who knows?
JetBluefan1
Most people on a.net hate JetBlue. Get used to it.
HikesWithEyes From United States of America, joined Jan 2004, 816 posts, RR: 8 Reply 5, posted (5 years 2 weeks 2 days ago) and read 975 times:
Quoting FreequentFlier (Reply 3): While B6 did pull out of LAX, it looks like AS is trying to kill them on the West Coast
Kind of a no-brainer for AS. If someone invades your turf, you need to be aggressive in your defense.
Hopefully the AS response willl cause VX to re-deploy their jets elsewhere.
Competion, baby.
FreequentFlier From United States of America, joined Feb 2007, 804 posts, RR: 6 Reply 6, posted (5 years 2 weeks 2 days ago) and read 953 times:
Quoting JetBluefan1 (Reply 4):
It has been SRB's dream to launch a U.S. carrier for quite some time, and how he has finally done it. Nonetheless, there is no way in hell that the airline is making money by offering transcons on JFK/IAD-LAX/SFO when oil is $123/bbl. If JetBlue, which has a lower cost structure as well as plenty of connections at JFK decided to pull its LAX flights so close to start-up, then it is clear indication that transcontinental flights are simply not efficient nor profitable in this environment. VX adding frequencies to its transcon flights is simply to satisfy SRB's ego; IAD loads as well as yields have been horrendous, and there is no way that VX is making money on its JFK flights with all that competition.
So...to answer the question: do VX's investors intend to earn a return? Probably not through VX, but maybe through the Virgin brand itself. Who knows?
All very interesting comments but given the fact that foreign owned carriers can only own 25% of a carrier, SRB has to find $3 dollars for every 1 of his own dollars. Who the hell is providing that under this environment given their terrible LF numbers so far in addition to poor yield?
Cubsrule From United States of America, joined May 2004, 21242 posts, RR: 19 Reply 7, posted (5 years 2 weeks 1 day 22 hours ago) and read 864 times:
Quoting FreequentFlier (Reply 6): SRB has to find $3 dollars for every 1 of his own dollars. Who the hell is providing that under this environment given their terrible LF numbers so far in addition to poor yield?
All businesses lose money at first... I would argue that the more relevant issue is whether there's improvement (in performance metrics), and I don't know whether that's the case or not. Perhaps VX is still so small and so young that it's not possible to tell.
I can't decide whether I miss the tulip or the bowling shoe more
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From United States of America, joined Feb 2007, 804 posts, 
And believe you me, if a private investor was told that they would see x amount of dollars per share investment return, and the money is not there, they will be quite upset...
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