Galwayman wrote:Spot on . It’s unworthy of any investment . Even Branson won’t put any of his own money into it . And that says it all really ...
Once again you are talking rubbish. Did you miss this last month where SRB injected money into VS as well as other businesses within the Virgin empire?
https://www.ft.com/content/4010625e-6c5 ... bea055720b
I'm not going to go round in circles about whether SRB should be fully funding this, but some people do make out he has a bottomless pit of cash.
skipness1E wrote:Context, context, context.
Virgin’s major problem was not having a partner as SRB saw the rise of alliances as a cartel. He was eventually talked round and the business was well back on track partnering with Delta. That alone means a corner had been turned and the future was brighter. And then along came the Dreamliner engine fiasco and then Coronavirus.
Nice to see a more balanced post on this thread for a change.
I agree that VS were slow to embrace the concept of entering a joint venture with another airline (though they've been doing codeshare deals with airlines for years) and they should have probably joined an alliance sooner (SkyTeam would be the obvious one right now, and maybe that would have happened more quickly had SRB's sale of part of his stake to Air France-KLM went ahead). Another issue to add to the RR 787 engine fiasco and COVID-19 is Brexit. The weak GBP rate since the 2016 vote was cast in favour of leave would have no doubt impacted many businesses who have costs in USD, particularly VS given how much of their business involves traffic to/from the US. I can only think of one time around Jan/Feb 2018 when
GBP was anywhere close to what it was against USD pre-vote.
3AWM wrote:Virgin already have a subsidiary with a 2nd AOC so getting the AOC cancelled is not an obstacle to that.
That will be Virgin Atlantic International Limited that currently operates a number of LGW-Caribbean routes.
3AWM wrote:If UK gov lent Virgin £500m how would that have been spent? Paying leases on aircraft that are sitting on the ground for 6 months. I wouldn't make sense. Aircraft lessors are the end of the line.
It's probably one reason why Sir Stelios was dead against the easyJet board accessing the scheme and demanding the orders with Airbus are cancelled. OK I know easyJet probably have a different owned/leased aircraft mix to VS and it's easier said than done to get out of an order that big, but either way they will be spending money on new aircraft they currently can't fly, the rationale for buying new (fuel efficiency) isn't as strong with oil prices being this low, and raises questions about the necessity of getting new aircraft right now. Despite his bluster and going to war with the board, he has a point.
I won't go into Sir Stelios' dividend again, though I will highlight the fact he appears to be getting an easier ride both in the media and on this forum than SRB despite being similar in the sense he's not a UK resident and not involved in the day-to-day running of the airline he founded.