Virgin Blue cuts spending

[NM]

From news.com.au:

LOW cost carrier Virgin Blue has deferred some capital expenditure for the fiscal 2009 year due to challenging conditions in aviation markets and said it has no need to raise fresh capital.

Chief executive Brett Godfrey told shareholders at the airline's annual general meeting that non-core capital expenditure has been deferred.

 

[JohnK]

Some positive, and interesting, comments from Brett Godfrey. A little disappointing that the share market does not share the same view although in general airlines are not doing well anyway. The share price for VBA is back below 30c.

 

[Saab34]

Cutback announcements in Jan heh? Some early estimates from me:
-Cutback on OOL flights (ex SYD/MEL)
-Cutbacks on ADL sectors
-Reductions to MEL-CBR

Any other guesses??

 

[brett-au]

Cutback announcements in Jan heh? Some early estimates from me:
-Cutback on OOL flights (ex SYD/MEL)
-Cutbacks on ADL sectors
-Reductions to MEL-CBR

Any other guesses??

No more triple choc muffins

Those things must have cost a fortune. Why else would we have date and cranberry instead?

 

[crazydave98]

Cutback announcements in Jan heh? Some early estimates from me:
-Cutback on OOL flights (ex SYD/MEL)
-Cutbacks on ADL sectors
-Reductions to MEL-CBR

Any other guesses??

yeah good one Sunstar320 - you've just regurgitated Tiger's wish list of what we would do to make Tiger's life easier.

 

[Standby]

I think a whole of network approach will be done especially if forward bookings indicate business not returning as expected after the Jan school hols.
Reading between the lines in some of the papers this morning it looks like Brett to starting to get the message out to Journos/the market..or as Sir Joh used to say "Feed the Chooks" that something will happen,and the best time to put bad news out is when least people are reading the paper/watching news...read early Jan.As mentioned the first step is usually park a few marginal flights in offpeak times of day.Leisure punters arent as time sensitive as the briefcase brigade so moving an hr or so isnt an issue ,especially if the price is right.
Also agree with Brett you dont sack staff for a 6mth downtime.making people use their backlog of leave or leave without pay is the approach most businesses use to get over small disruptions. If however this GFC (Global Fin Crisis) escalates in the new year as more businesses are impacted a hiring freeze now would deliver the cuts mentioned by natural attrition within 6mths. DJ appear to be as well placed as QF to ride out the problems...I agree with Dave that DJ & QF will view any further cuts they make strategically & not give a struggling TT any leg up in the process...nor should they