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Topic Author
Posts: 53
Joined: Sun Feb 11, 2001 11:12 am

VS Makes Loss Of 92 Million

Tue Aug 20, 2002 9:25 am

Just been browsing VS website press releases,and tagged onto the end of the announcement of new Caribbean routes was the small mention of a GBP 92 million loss last year!!(although a boast of 2 mill profit if it were not for 9/11)

For an airline as small as VS,in terms of size,probably not in the top 5 airlines in the UK..most charters probably have bigger fleets and carry more pax,this equates to a massive loss!! As I understand,VS only has 20 odd a/c and services some 17 destinations(someone correct me if I'm wrong)

Compared to some of the majors who have posted losses of maybe 4,5 or 6 six times more loss than VS...but are airlines that are 10,20,30 0r 40 times bigger in terms of size than Virgin,it strikes me as quite severe.It would be like BA posting losses of maybe 1.2 BILLION!

Is my logic off par,or does this make anyone else think that VS is in serious S**t?

Comments and views...
 
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Topic Author
Posts: 53
Joined: Sun Feb 11, 2001 11:12 am

RE: VS Makes Loss Of 92 Million

Wed Aug 21, 2002 5:34 am

Hmmm,nobody have anything to say on this?Has it been discussed on a previous thread?
There are many Virgin lovers on this forum,surely somebody else thinks this press release is a bit of a worry...that is a BIG loss as I said.
Heads buried in sand??
Somebody worry with me!
 
BA DC-10
Posts: 140
Joined: Sun Jul 15, 2001 8:40 pm

RE: VS Makes Loss Of 92 Million

Wed Aug 21, 2002 6:30 am

this is a major loss for VS, but not suprising considering their major presence on transatlantic routes. Also consider the fact that they got rid of their paid for 742's, in exchange for 744's with high lease rates...draining money. More worrying is their preiction of a £2mil profit if it were not for Sept 11th, they should be making much more profit than this. Virgin is not havin a great time, they're 'struggle' for slot rights at Heathrow was shown to be a complete scam and anti BA campaign as they sold slots at LHR to BA!!
 
KWSea
Posts: 111
Joined: Tue Jul 24, 2001 1:49 am

RE: VS Makes Loss Of 92 Million

Wed Aug 21, 2002 8:26 am

I worry more what will happen to them if the Bermuda II agreement is srapped and Heathorw opened up. I can't see how VS will survive among a whole lot of new,big, powerful airlines. Richard Branson's silence about all of this is interesting.
 
Rick767
Posts: 2613
Joined: Sun Jan 30, 2000 8:11 pm

RE: VS Makes Loss Of 92 Million

Wed Aug 21, 2002 8:53 am

Virgin Atlantic Operating Profit

Year to 30/04/1998 - £78.4 million
Year to 30/04/1999 - £105.8 million
Year to 30/04/2000 - £43.3 million
Year to 30/04/2001 - £53.0 million

Wouldn't be too worried about a £92 million loss to 2002, will be recovered to previous levels in the next year or two in any event. Plenty airlines have much worse figures than above, and still happily operate on the back of wealthy banks as they slip into the red every year.
I used to love the smell of Jet-A in the morning...
 
greenjet
Posts: 869
Joined: Sat Aug 25, 2001 9:59 pm

RE: VS Makes Loss Of 92 Million

Wed Aug 21, 2002 9:21 am

More worrying is their preiction of a £2mil profit if it were not for Sept 11th

Prior to Sept 11th the aviation industry was already experiencing an economic downturn but Sept 11th accelerated this decline. If it had not been for these events then VS claim they would only have posted a £2m profit due to fallen yields brought about by the original downturn.
 
QANTASpower
Posts: 515
Joined: Sat Aug 17, 2002 3:07 pm

RE: VS Makes Loss Of 92 Million

Wed Aug 21, 2002 10:16 am

Looks like another bad investment by SIA then.
 
VC-10
Posts: 3546
Joined: Tue Oct 26, 1999 11:34 am

RE: VS Makes Loss Of 92 Million

Thu Aug 22, 2002 4:11 am

they got rid of their paid for 742's, in exchange for 744's with high lease rates

The 742 were not paid for, they were leased. The last years 744 aquisition were a cancelled order so the leasors wanted to get them off their hands. The result is knock down lease rates.

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