BigGSFO From United States of America, joined Jun 2005, 2755 posts, RR: 7 Posted (4 years 6 months 1 day ago) and read 4153 times:
Interview with David Cush Highlights include:
-Fuel hedge opportunity
-Will remain at current fleet size for 1 1/2 years
-Still could turn profit by 2010 but may push back until 2011
PanAm330 From United States of America, joined Mar 2004, 2601 posts, RR: 10 Reply 3, posted (4 years 6 months 21 hours ago) and read 3844 times:
Quoting Wedgetail737 (Reply 1): Does it mean that VX will probably not open any new destinations through 2010?
I'm pretty sure they've got quite a bit of slack in their schedules to allow for a new destination or two. We might not see any new transcon or midcon flights, but you may see close-in destinations like PHX, SNA, PDX or even DEN added. They do have 25 aircraft, after all.
Iaddca From United States of America, joined Jul 2007, 286 posts, RR: 0 Reply 5, posted (4 years 6 months 19 hours ago) and read 3710 times:
I understand it's rough times, but when you plan to break-even three years from now, you really don't have a plan to to break-even.
I've never understood how an LCC could fill its schedule, whether with 7 destinations or 70, focusing on routes where it only offers 20-30% of the seat capacity. They should pick a destination from SFO, whether it's PDX, SNA, PHX, wherever, and determine to own it. No question they have a great in-flight product, but from a practical standpoint, it's taking too long to build a base of loyal San Franciscans, New Yorkers, and Washingtonians, etc, who'll pay a premium or choose VX consistently over PS.
PlanesNTrains From United States of America, joined Feb 2005, 4539 posts, RR: 28 Reply 6, posted (4 years 6 months 16 hours ago) and read 3034 times:
Quoting Iaddca (Reply 5): I've never understood how an LCC could fill its schedule, whether with 7 destinations or 70, focusing on routes where it only offers 20-30% of the seat capacity. They should pick a destination from SFO, whether it's PDX, SNA, PHX, wherever, and determine to own it. No question they have a great in-flight product, but from a practical standpoint, it's taking too long to build a base of loyal San Franciscans, New Yorkers, and Washingtonians, etc, who'll pay a premium or choose VX consistently over PS.
I would think that, if they are trying to woo the business flyer, they will be hardpressed to do so with only a couple of destinations that they dominate. Those business flyers are likely tied to their FF programs - not switching for VX, no matter how good they are on those handful of routes.
Ikramerica From United States of America, joined May 2005, 21029 posts, RR: 60 Reply 8, posted (4 years 6 months 10 hours ago) and read 2080 times:
Quoting Iaddca (Reply 5): I understand it's rough times, but when you plan to break-even three years from now, you really don't have a plan to to break-even.
Which is what some domestic carriers feared was the case from the start with VX. Unlimited funds from foreign sources to keep an airline in business solely to poach high yield fliers from established carriers, especially those connecting from other Virgin brand flights.
Whether that's true or not, it's what some believe is Branson's plan.
Of all the things to worry about... the Wookie has no pants.
Sydscott From Australia, joined Oct 2003, 2377 posts, RR: 18 Reply 9, posted (4 years 6 months 8 hours ago) and read 1834 times:
Quoting Ikramerica (Reply 8): Unlimited funds from foreign sources to keep an airline in business solely to poach high yield fliers from established carriers, especially those connecting from other Virgin brand flights.
At which point the equation for SRB becomes "revenue derived from said premium pax for Virgin Atlantic MINUS cash cost (and opportunity cost lost from re-deploying that cash) of keeping VX in business." Not forgetting that the co-investors in VX would also have to dip into their own pockets to keep the %'s right if there was a capital injection. Given the state of the US economy if you were one of the co-investors would you put your hand in your pocket to buy more equity?
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