eta unknown wrote:
I'm sorry this just sounds delusional. So the strategy was to continue to bleed money from the shareholders- for how long?!?
They had moved to the profit stage. Their share holders seemed on board with the transformation save AIR NZ thus their exit.
It wasn't JB. The board and shareholders held the same vision over a decade. Thus why he was CEO for so long.
VA had not really moved into a "profit stage". I have no interest in dancing on anyone's grave, but let's not rewrite history with rose coloured spectacles.
They were breaking even operationally, but were significantly over-leveraged, and had poor underlying fundamentals with a surprisingly high cost base while operating at a revenue disadvantage in every single market they competed in.
I wanted them to survive, I really did, and think that Scurrah had the potential to turn the carrier around. However let's not ignore how badly mismanaged the company was by Borghetti and the board. Books will be written about this.
The sad thing is that thousands of people will have to suffer because the people at the top put ego before sound business management.
Indeed. I do believe VA initially had a sound target they aim - the market has largely demonstrated that we could have some sort of second premium airline. However, a few things that both the management and board had greatly missteped IMHO -
- They have let their costs blow out of the roof too much, too quickly
- It was clear IMHO that JB was not able to contain the costs, as such I do believe board should've realised this early on
- I do believe Chris Luxon in one way saw this coming and thus the boardroom fight.
- VA has let their position blurred for too long as I previously mentioned. They are squeezed from the top by Qantas, bottom from the two LCCs, normally selling more expensive than LCC but without real benefits, and I feel that the top part (premium market) has lacked some serious momentum to charge a premium for.
Now I hope what I said makes sense given the time of the night.....