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The Current State Of Virgin Blue  
User currently offlineIndustrybuff From United Arab Emirates, joined Dec 2003, 347 posts, RR: 1
Posted (5 years 4 months 3 weeks 10 hours ago) and read 3695 times:

Hi All

Many rumours surround Virgin Blue here in AUST, particularly about their solvency and financial status.

Can anyone in the know answer some of these comments we have been hearing

How is cash operating reserves looking,
Is DJ's fuel hedging cost around USD$80 a barrell
is DJ loosing millions each week
is DJ trying to hold out till end MAR to review operations
is DJ parking 8 planes out of regular service
is DJ cutting 200 cabin crew positions ASWELL as 400 other positions

Cheers
Industrybuff

15 replies: All unread, jump to last
 
User currently offline6thfreedom From Bermuda, joined Sep 2004, 3321 posts, RR: 20
Reply 1, posted (5 years 4 months 3 weeks 9 hours ago) and read 3628 times:

i keep hearing all of the above...

User currently offlineZkpilot From New Zealand, joined Mar 2006, 4798 posts, RR: 9
Reply 2, posted (5 years 4 months 3 weeks 5 hours ago) and read 3504 times:

I read somewhere a press release from DJ saying they were cutting back staff but that many of them would be transferred to VA.


56 types. 38 countries. 24 airlines.
User currently offlineANstar From United Kingdom, joined Nov 2003, 5148 posts, RR: 6
Reply 3, posted (5 years 4 months 3 weeks 2 hours ago) and read 3372 times:



Quoting Industrybuff (Thread starter):
How is cash operating reserves looking,

They had about $603 Million when they last released their figures in October lats year.

Quoting Industrybuff (Thread starter):
is DJ parking 8 planes out of regular service

5 will be parked temporarily.

Quoting Industrybuff (Thread starter):
is DJ cutting 200 cabin crew positions ASWELL as 400 other positions

Upto 400 in total - though if they can transfer some to DJ or go part time it will not be that high - apparently the part time list is quite high.

If their cash reserves had dropped considerably, they would be obliged to advise the ASX.

If you like at their last annual report - they also have Assets of $3.3BN and liabilities of $2.4BN.
This would have changed obviously as they have the 777's now.

They release the last 6 months results tomorrow. their outlook and guidance was for a small profit. If they were going to reveal a HUGE loss as a lot of scaremongers are wanting, then again, I'm sure the ASX would have to be notified of this huge variance since their last guidance to the market.


What I think? A small loss will be posted, which given the launch of V Aus and its expected first year loss of $65M this is to be expected.


User currently offlineJetfuel From Australia, joined Jan 2005, 2198 posts, RR: 0
Reply 4, posted (5 years 4 months 3 weeks 2 hours ago) and read 3342 times:

V Australia may creat losses for a few years. At least DJ is being procative in trying to batten down the costs, including 30% salary cut to management. I remember AN being in trouble and any effort to ammend their ways was never instituted.... I really hope they make it. Yes they have made a few blunders along the way, but few could forsee this economic mess


Where's the passion gone out of the airline industry? The smell of jetfuel and the romance of taking a flight....
User currently offline6thfreedom From Bermuda, joined Sep 2004, 3321 posts, RR: 20
Reply 5, posted (5 years 4 months 2 weeks 6 days 23 hours ago) and read 3235 times:



Quoting ANstar (Reply 3):
5 will be parked temporarily.

it won't actually be 5 parked aircraft...
it is reduced flying equivalent to 5 parked aircraft.
mothballing and restarting 5 aircraft is just too hard and costly...


User currently offlineNZ1 From New Zealand, joined May 2004, 2245 posts, RR: 26
Reply 6, posted (5 years 4 months 2 weeks 6 days 23 hours ago) and read 3215 times:
AIRLINERS.NET CREW
FORUM MODERATOR



Quoting 6thfreedom (Reply 5):
it won't actually be 5 parked aircraft...
it is reduced flying equivalent to 5 parked aircraft.
mothballing and restarting 5 aircraft is just too hard and costly...

I think you will find ANStar is correct. We have had these 5 aircraft removed from our maintenance schedule, due to the fact they will be parked up. Well that's what DJ told us last week.

NZ1


User currently offline6thfreedom From Bermuda, joined Sep 2004, 3321 posts, RR: 20
Reply 7, posted (5 years 4 months 2 weeks 6 days 22 hours ago) and read 3162 times:



Quoting NZ1 (Reply 6):

I think you will find ANStar is correct. We have had these 5 aircraft removed from our maintenance schedule, due to the fact they will be parked up. Well that's what DJ told us last week.

mixed reports i suppose...
my understanding was that mothballing 5 aircraft and then re-activating was too expensive, and that they would simply reduce flying.

speaking of which, does anyone know where the equivalent of 5 aircraft reduced flying will come from?

i suspect some high frequency sectors will be reduced..
perhaps OOL from MEL and SYD, MEL-SYD, some MEL and SYD to BNE?

any information out there?


User currently offlineEXAAUADL From , joined Dec 1969, posts, RR:
Reply 8, posted (5 years 4 months 2 weeks 6 days 21 hours ago) and read 3084 times:

wow things certainly have changed at DJ in only a few short years.

The oil hedge is surely killing them but even so they could make money at $80 im sure

I think they have increased their costs too much and grown too fast to serve too many out of the way places.

Also is Tiger trashing yields in Australia?


User currently offlineREALDEAL From , joined Dec 1969, posts, RR:
Reply 9, posted (5 years 4 months 2 weeks 6 days 20 hours ago) and read 2989 times:

DJ can't be in any more trouble than QF part of Qantas group. Isn't JQ the only part of Qantas making money right now (not last 1/4 or last 1/2) right now !!!

User currently offline6thfreedom From Bermuda, joined Sep 2004, 3321 posts, RR: 20
Reply 10, posted (5 years 4 months 2 weeks 6 days 7 hours ago) and read 2799 times:



Quoting NZ1 (Reply 6):
Quoting 6thfreedom (Reply 5):
it won't actually be 5 parked aircraft...
it is reduced flying equivalent to 5 parked aircraft.
mothballing and restarting 5 aircraft is just too hard and costly...

I think you will find ANStar is correct. We have had these 5 aircraft removed from our maintenance schedule, due to the fact they will be parked up. Well that's what DJ told us last week.

From this morning's announcement:

http://www.asx.com.au/asxpdf/20090223/pdf/31g6359pz0k0vz.pdf

"aircraft managed as operational spares"


User currently offlineANstar From United Kingdom, joined Nov 2003, 5148 posts, RR: 6
Reply 11, posted (5 years 4 months 2 weeks 6 days 7 hours ago) and read 2786 times:



Quoting EXAAUADL (Reply 8):
wow things certainly have changed at DJ in only a few short years.

And things have changed for a lot of airlines in the past few months.

If the losses continue at the current rate (which I dont think they will given $100M was due to bad heges and forex) then they would still have 2 years of cash reserves.


User currently offlineAussie_ From Australia, joined Dec 2000, 1766 posts, RR: 5
Reply 12, posted (5 years 4 months 2 weeks 6 days 6 hours ago) and read 2741 times:

Godfrey's presentation today said that cuts would mainly be through frequency reductions on high frequency routes, so one would imagine the likes of SYD-MEL, SYD-BNE, MEL-ADL etc?

Other forums have mentioned the fact that ADL-HBA has quietly dropped off the booking system from Mid-April too, so there might be one or two entire routes cut?


User currently offline6thfreedom From Bermuda, joined Sep 2004, 3321 posts, RR: 20
Reply 13, posted (5 years 4 months 2 weeks 6 days 5 hours ago) and read 2679 times:



Quoting Aussie_ (Reply 12):
Other forums have mentioned the fact that ADL-HBA has quietly dropped off the booking system from Mid-April too, so there might be one or two entire routes cut?

Thin routes that they don't want to go head on with Tiger?
I suspect form PER-ADL capacity will also be pulled if that's the case, with TT and JQ starting in coming months.


User currently offlineREALDEAL From , joined Dec 1969, posts, RR:
Reply 14, posted (5 years 4 months 2 weeks 2 days 6 hours ago) and read 2359 times:



Quoting 6thfreedom (Reply 13):
Thin routes that they don't want to go head on with Tiger?
I suspect form PER-ADL capacity will also be pulled if that's the case, with TT and JQ starting in coming months.

Be VERY interesting if Tiger start on the Golden Triangle.

With todays VA 1st flight finally & all the publicity, should at least boost DJ's share price a little. Hope media don't focus on their load factor today which seems to be low.

So are they still paying leasing costs on parked aircraft ?

Surely, they'd be better off using aircraft on low utilisation basis rather than parking them ?


User currently offlineEXAAUADL From , joined Dec 1969, posts, RR:
Reply 15, posted (5 years 4 months 2 weeks 1 day 20 hours ago) and read 2235 times:



Quoting 6thfreedom (Reply 13):
Thin routes that they don't want to go head on with Tiger?
I suspect form PER-ADL capacity will also be pulled if that's the case, with TT and JQ starting in coming months.

so you think DJ will run away from Tiger?


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