VFF ipo

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Yikes....

Didn't Warren Buffet say never to invest in airlines? Although he bought Net Jets but that's a bit different.

Can't say I'd be lining up to buy shares in VA.
 
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NZflygirl said:
Yikes....

Didn't Warren Buffet say never to invest in airlines? Although he bought Net Jets but that's a bit different.

Can't say I'd be lining up to buy shares in VA.
Click to expand...

Difference is that this is not an airline but a loyalty program which I think actually makes money. Unlike the airline...
 
Given VAH still owns a chunk of VFF -- the look thru valuation on the rest of VAH is tiny
 
Virgin has to try to make an operating profit before they could float VFF for its highest and best value. Naturally without profits the thought that they could do an Ansett has prompted Air New Zealand to want to get out. Repeated calls on funds from the biggest shareholders won't continue without management and/or style changes.
I do love using Virgin points for the longer across Australia flights in business class on their refurbed A330s.
 
VA could do with the cash .... but if they sold it would be about the last thing of value they own. If affinity wanted to sell out EY's GLC could be a keen buyer.
 
I suspect that its a banker presentation, rather than an airline perspective; these are done all the time. However if it ever gets close to fruition, cash in your Velocity points ASAP!

FWIW, this is from the story. I think some-one got their columns labelled wrong, but if they got their donut graphs right, look at the comparative value of Velocity!

Pitch.JPG
 
Great graphs Roo Flyer. International looks like a tough gig.
 
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