Virgin Australia IPO Discussion

[RooFlyer]

I think VA needs a lot of capital investment to take on what Qantas will be in 10 years time when they finally have some new planes. Surprising that they are not raising any capital, I just don't see a good long-term picture here.

Have you read the prospectus?

BTW equity capital is expensive - and dilutionary. Debt capital is cheaper. Equity capital wants a return better than other available options. Debt capital is ultimately tied to the bond rate, almost always a few points lower.