Search found 1628 matches

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by VS11
Thu May 21, 2020 8:24 pm
Forum: Civil Aviation
Topic: FT: Investors bet AA will file for BK
Replies: 170
Views: 27329

Re: FT: Investors bet AA will file for BK

However, this bankruptcy discussion is totally theoretical because the Federal Reserve is already buying all sorts of debt, which means that when any airline stops servicing their debt, that debt can be simply sold to the Federal Reserve, which then can refinance it any way it wishes. The Fed can l...

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by VS11
Thu May 21, 2020 7:25 pm
Forum: Civil Aviation
Topic: FT: Investors bet AA will file for BK
Replies: 170
Views: 27329

Re: FT: Investors bet AA will file for BK

I'm not a bankruptcy expert here but I wanted to pose an alternative to some of the scenarios being thrown around. What about a deal with either an investment group, another airline (or both) where AA enters CH-11 and the assets of AA are purchased from the creditors by the investors and are transf...

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by VS11
Thu May 14, 2020 10:39 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

WSJ: Virgin Atlantic in Talks to Raise More Than $900 Million

The Wall Street Journal is reporting on Deutsche Bank and other institutions in talks for funds for Virgin Atlantic. Richard Branson’s Virgin Atlantic in Talks to Raise More Than $900 Million https://www.wsj.com/articles/richard-bransons-virgin-atlantic-in-talks-to-raise-more-than-900-million-115894...

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by VS11
Wed May 13, 2020 4:29 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

BA will return to these smaller markets before anyone else. Your comment about DL adding AUS/MSY/BNA/CHS/BWI is not going to happen in the current climate and they don't have the slots. VS with its weak finances will be dealing with reduced demand at a time it has no money against a much better cap...

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by VS11
Wed May 13, 2020 4:19 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

[I said this before but here we go again. In the next 3 years: Is BA going to send 4 huge jets to Boston? NO. Is BA going to send 6-8 huge jets to NYC? NO. Is BA going to decrease its flights/capacity to Miami? YES. Same for LAX and SFO. These are high yielding lucrative markets where BA's cuts giv...

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by VS11
Wed May 13, 2020 4:15 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Exactly. He is just dreaming of an imaginary situation where VS maintains all its capacity (at a time when they have no money to even survive) and BA keeps shrinking its operation on all routes :-P. Not dreaming up anything. VS already published its schedule for next year. But yes, percentage-wise ...

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by VS11
Wed May 13, 2020 3:58 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

I don't see BA going for frequency. They will want to focus on minimizing their operating costs and maximizing yield per flight. That means fewer flights in general. In the case of Boston, one flight per day for the next year. If demand is strong, raise fares and/or use a bigger plane but unlikely ...

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by VS11
Wed May 13, 2020 3:38 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

LOL. If you really think that DL/VS can make AUS, MSY, BNA, CHS, BWI, etc. work in a situation where BA cannot, it is clear that you have no freaking clue about what what you are talking! DL can serve them from ATL. Duh! And BA can serve them via AA. Of course, they can and will. But the lack of no...

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by VS11
Wed May 13, 2020 3:30 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Additionally, BA is very likely to cut its non-stop flights to Austin, New Orleans, Nashville, Charleston, Baltimore. While VS doesn't serve these, it presents opportunities to serve them via DL. These are all in the American South where Delta rules supreme (and I am saying this as an AA flyer). LO...

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by VS11
Wed May 13, 2020 3:27 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

It's like being stuck in the twilight zone in this thread. The very same reasons why BA has to cut back will apply to VS. Just on a smaller scale but that is not a competitive advantage but a function of their overall smaller size. Once more: BA like most airlines will cut back in line with decline...

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by VS11
Wed May 13, 2020 3:22 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

It's like being stuck in the twilight zone in this thread. The very same reasons why BA has to cut back will apply to VS. Just on a smaller scale but that is not a competitive advantage but a function of their overall smaller size. Once more: BA like most airlines will cut back in line with decline...

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by VS11
Wed May 13, 2020 1:52 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

⁸ ....but suggesting that VS is somehow in a stronger/same position as BA... I only suggested that BA's necessity to cut capacity and frequency will be beneficial for Virgin. That's all. Everything else is your assumption or imagination. It's like being stuck in the twilight zone in this thread. Th...

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by VS11
Wed May 13, 2020 12:19 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

JamesCousins wrote:
....but suggesting that VS is somehow in a stronger/same position as BA...


I only suggested that BA's necessity to cut capacity and frequency will be beneficial for Virgin. That's all. Everything else is your assumption or imagination.

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by VS11
Wed May 13, 2020 12:12 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

....The point off a paid off asset is that it isn't a burden, because you've paid for it - it's the precise reason Delta hold onto to frames longer than the rest, operating costs might be higher but because the asset has been paid for it costs less overall. Sure, I agree with you here. The burden i...

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by VS11
Wed May 13, 2020 12:04 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

No offense - but I'm not quite sure what you've been reading or who you've been listening to: I'll keep this very simple as opposed to delving deep into corporate finance of airlines It's obvious bigger fleet requires more cash to maintain costs - but that also means you've made more money & ha...

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by VS11
Tue May 12, 2020 6:17 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Sure. I expect BA to be able to renegotiate its leases, same way as VS and other carriers. Somehow you still don't get it that currently and in the foreseeable future, it is best to NOT be an airline of any kind at all. Right now owning an airplane means a loss. Operating a flight means a loss. Wha...

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by VS11
Tue May 12, 2020 4:48 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

VS will have fewer revenue-earning opportunities than BA due to BA's larger fleet. Computer says NO. This is not Field of Dreams "If you build it they will come" type of situation. The list of destinations served plus the frequency offered matters now as well as later this year. Not curre...

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by VS11
Tue May 12, 2020 3:54 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

You don’t really seem to understand that the airlines are not all shrinking to the same size. Yes BA has higher fix costs, but they are not shrinking down to 30-whatever planes. Post-covid they will be smaller than before, but still a lot larger than VS. That means they can earn more revenue to cov...

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by VS11
Tue May 12, 2020 3:22 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

And in the case of BA, those assets flew profitably throughout the last years and resulted in a position of £9 billion in the bank. VS with around 1/7th of the fleet has more than £1.3billion in the bank? Good luck with your theory. You'll need it. To achieve higher yields, airlines like BA, LH, KL...

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by VS11
Tue May 12, 2020 2:57 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Yes but I reiterate my point, it is all relative. 5% of BAs revenue equals a lot more than Virgin's 5%, so BA can "afford" (and by afford I mean manage/survive with the already allocated state aid) their higher fixed costs (which I say again are proportionally lower than BAs). Both BA and...

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by VS11
Tue May 12, 2020 2:25 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Relative to average revenue generated it's probably actually Virgin. Their fleet is basically entirely leased/financed compounded with the fact IAG/BA have far more in cash reserves and a much greater margin. As soon as people start flying again BA will find it much easier to breakeaven on a flight...

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by VS11
Tue May 12, 2020 12:53 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

What makes you think BA will cut the routes it shares with VS? They tend to be the higher yield ones. The yield is not going to come by running 6-7 flights to NYC or 4 flights to Boston (one of which used to be 380). That is correct. The yield is not going to come by cutting more than necessary to ...

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by VS11
Tue May 12, 2020 12:34 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Herein lies the greatest misconception folks here have about VS and airlines in general. The largest weak spot of any airline is its huge fixed costs which in times of difficulty are hard to maintain as the fixed costs are there but the revenue isn't. Now you tell me between BA and VS which one has...

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by VS11
Tue May 12, 2020 12:18 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

The thing that puts an airline out of business is not it's fixed costs, it is cash flow. Swissair and Sabena went out of business because revenue dried up and they could not cover their immediate need for cash. BA's fixed costs are likely to be higher than Virgin's. However, bear in mind that a lot...

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by VS11
Mon May 11, 2020 10:42 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

The thing that puts an airline out of business is not it's fixed costs, it is cash flow. Swissair and Sabena went out of business because revenue dried up and they could not cover their immediate need for cash. BA's fixed costs are likely to be higher than Virgin's. However, bear in mind that a lot...

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by VS11
Mon May 11, 2020 5:15 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Good points, selling something of value to prop up something of less or no value. It didn't work for Pan Am and I doubt it will for Virgin Atlantic. SRB does have some interesting associates. I don't think any of this will change the fact that the airline business will be radically different when w...

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by VS11
Mon May 11, 2020 4:11 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Good points, selling something of value to prop up something of less or no value. It didn't work for Pan Am and I doubt it will for Virgin Atlantic. SRB does have some interesting associates. I don't think any of this will change the fact that the airline business will be radically different when w...

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by VS11
Fri May 08, 2020 1:07 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

https://www.ft.com/content/d6ecbf8a-4b2 ... 0218fa9c41
-->

Some good news coming from a FT article stating that the Virgin Group is now able to cash up to 50% of its Virgin Galactic stake, which is worth more than $900 million at current prices.

https://www.ft.com/content/d6ecbf8a-4b2 ... 0218fa9c41

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by VS11
Fri May 08, 2020 12:05 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

I notice nobody mentions the 49% Delta own, and the money they take out of the airline. Nooooo, it's only ever Bransons fault. Sent from my SM-G930F using Tapatalk I questioned Delta's part in this in terms of responsibility to it's share holding and was met with a round of comments suggesting Delt...

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by VS11
Wed May 06, 2020 9:44 pm
Forum: Civil Aviation
Topic: Rumour: IAG and EY interested in creating a hub at VIE
Replies: 118
Views: 21237

Re: IAG or Etihad possibly taking over OS

It is a good idea to turn VIE into oneworld hub after Malev’s collapse left a big gap in Central and Eastern Europe a few years ago. Austrian has a good network in the area that can benefit OW.

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by VS11
Tue May 05, 2020 9:28 pm
Forum: Civil Aviation
Topic: Alaska Air Group (ALK) reports Q1 2020 financial results
Replies: 64
Views: 7374

Re: Alaska Air Group (ALK) reports Q1 2020 financial results

Why would any airline need to merge when they all have more airplanes than they know why to do with for the foreseeable future. Agreed. Airlines will be receding to their backyards where they have relative strength. DL most likely will step back from Seattle and Boston giving more breathing room fo...

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by VS11
Tue May 05, 2020 8:47 pm
Forum: Civil Aviation
Topic: Alaska Air Group (ALK) reports Q1 2020 financial results
Replies: 64
Views: 7374

Re: Alaska Air Group (ALK) reports Q1 2020 financial results

It's funny though, AS seems to always be the target for mergers on here but they consistently perform better than nearly every other airline. So why would they every vote to merge with anyone when they are perfectly capable of making more money being independent? If they merge with anyone, it will ...

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by VS11
Tue May 05, 2020 8:21 pm
Forum: Civil Aviation
Topic: COVID-19 Cargo Discussion Thread (Cargo Operators and Passenger Airlines Operating Cargo Only Flights)
Replies: 362
Views: 43801

Re: COVID-19 Cargo Discussion Thread (Cargo Operators and Passenger Airlines Operating Cargo Only Flights)

The Wall Street Journal has an article on the topic. "..Available freight capacity on passenger planes in March was still down around 44% from a year ago, according to the air transport association. While dedicated air freighters added more flights, total air-cargo capacity was down 25% versus ...

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by VS11
Tue May 05, 2020 3:13 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

According to the article the fleet will consist of 36 aircraft. The previous setup would've been 43 aircraft by 2022 (subject to new A330's replacing older ones). The split would have been as below, however clearly there will need to be some cancellations on new orders. Even with the 787's, all A35...

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by VS11
Tue May 05, 2020 2:12 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

The LGW-switched-to-LHR routes don't have to operate daily for some time. So 1 slot pair can be used for 2-3 former LGW destinations.

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by VS11
Tue May 05, 2020 12:54 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Confirmed on BBC live broadcast: Virgin Atlantic to close Gatwick ops.

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by VS11
Tue May 05, 2020 1:10 am
Forum: Civil Aviation
Topic: Dominic Gates and Team Wins Pulitzer Prize for MAX Reporting
Replies: 10
Views: 2018

Re: Dominic Gates and Team Wins Pulitzer Prize for MAX Reporting

Well-deserved! The reporting was compelling and competent.

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by VS11
Fri May 01, 2020 12:46 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

PHL, BOS and MIA were available to anyone as remedy slots and no one could make anything off the routes. And DL tried hard... so sometimes if there is no competition on a specific route it's because one player is all it can take You are just making statements in further support of the anti-competit...

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by VS11
Thu Apr 30, 2020 5:36 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

To conclude that the exit of a handful of single route and often one flight a day airlines makes Heathrow to the US less competitive in a meaningful way makes no sense. You need three meaningful airlines/groups to keep it honest and we have that - with or without the help of VS. It's still way more...

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by VS11
Thu Apr 30, 2020 5:09 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

To conclude that the exit ofr= a handful of single route and often one flight a day airlines makes Heathrow to the US less competitive in a meaningful way makes no sense. You need three meaningful airlines/groups to keep it honest and we have that - with or without the help of VS. It's still way mo...

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by VS11
Thu Apr 30, 2020 4:17 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

To conclude that the exit of a handful of single route and often one flight a day airlines makes Heathrow to the US less competitive in a meaningful way makes no sense. You need three meaningful airlines/groups to keep it honest and we have that - with or without the help of VS. It's still way more...

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by VS11
Thu Apr 30, 2020 12:22 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Yes, I am well aware that there is a difference between an alliance and a JV. Airlines do not enter into alliances to enable them to operate parallel services (eg AA and BA both flying LON-DFW). Rather, airlines want access to the behind point cities their partner serves that they do not. A key ben...

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by VS11
Wed Apr 29, 2020 12:13 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

What has VS done to raise additional capital? They should only go to the the government as a last resort - when all else has failed, or after it has failed to raise the full amount needed. They hired investment bank Houlihan Lokey to reach out to private investors - which is what they were asked to...

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by VS11
Wed Apr 29, 2020 11:42 am
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Unless the Govt can support every company, choices have to be made. Actually, there already is a solution which was used by the UK 100 years ago and even further - issuing a consol - a perpetual bond. In essence, the government can support the entire economy by making sure money flows and everybody...

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by VS11
Wed Apr 29, 2020 2:46 am
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Airlines SHOULD be getting special treatment as profitable viable employers are now closing because of government decisions. That’s “special treatment” required. I must say I am alarmed by the cold and callous attitude of many, especially US posters on this thread. This is not survival of the fitte...

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by VS11
Tue Apr 28, 2020 7:03 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

As I posted before, VS isn’t some saint that takes a principled stance against such behaviour, they have engaged in breaking anti-trust rules and conspired with other airlines to fix prices against the interest of consumers on several occasions. They only avoided a fine last time because they becam...

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by VS11
Tue Apr 28, 2020 5:52 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

Where you say "The truly anti-competitive nature of the TATL JV's" what exactly do you mean? In every market from Europe to and from North America the three alliances compete hard for business. For just about every origin and destination, each of the alliances will fight hard for a share ...

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by VS11
Tue Apr 28, 2020 4:47 pm
Forum: Civil Aviation
Topic: Virgin Atlantic needs government support?
Replies: 1317
Views: 161129

Re: Virgin Atlantic needs government support?

All that said Virgin Group may have an out for a smaller business short term via Virgin Atlantic International - transfer a few more aircraft over and actually register them in the Caribbean. I did wonder about the second AOC VS have under Virgin Atlantic International Limited that was setup and ac...

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by VS11
Tue Apr 28, 2020 1:54 pm
Forum: Travel, Polls & Preferences
Topic: AA hands out masks. B6 requires them.
Replies: 18
Views: 1524

Re: AA hands out masks. B6 requires them.

This is going to be the new normal for a while. AA will offer masks to fliers beginning this weekend, while B6 will require them beginning next week. http://news.aa.com/news/news-details/2020/American-Airlines-Announces-Enhanced-Cleaning-Procedures-and-New-Personal-Protective-Equipment-for-Customer...

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by VS11
Tue Apr 28, 2020 1:51 pm
Forum: Travel, Polls & Preferences
Topic: AA hands out masks. B6 requires them.
Replies: 18
Views: 1524

Re: AA hands out masks. B6 requires them.

Miamiairport wrote:
Most of these masks are cheap and flimsy. I doubt they'd protect you from much of anything. This is a PR stunt. The free masks will be gone within 30 days.


Masks are not to protect you but other people from you.

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