Virgin Blue worth less than a 777

[NM]

from news.com.au:

Virgin Blue market value slumps as shares tank

VIRGIN Blue's market value has slumped to little more than $247 million.

And this is less than the price of one of the seven jetliners its V Australia offshoot is buying to fly the Pacific.

The airline's shares (vba.ASX:Quote,News) closed at 23.5 cents on Friday, having fallen about 24 per cent over the past three weeks.

 

[Standby]

from news.com.au:

DJ's 1/2 year loss of $100M wont help..and with no dividend or little likeihood of an end of year one from their provided outlook ,wont have people knocking down their brokers door to buy them .

 

[Nigelinoz]

DJ's 1/2 year loss of $100M wont help..and with no dividend or little likeihood of an end of year one from their provided outlook ,wont have people knocking down their brokers door to buy them .

In the current economic climate I wouldn't be knocking down brokers doors to buy ANY AIRLINE shares.

 

[dot]

Speaking of which - I noticed the VA 777 (they only have one so far don't they?) parked at MEL today over near the Tiger terminal - I could see it from the car as I went up the ramp to the departures level...

 

[Nigelinoz]

Speaking of which - I noticed the VA 777 (they only have one so far don't they?) parked at MEL today over near the Tiger terminal - I could see it from the car as I went up the ramp to the departures level...

Two actually,the second one,VH-VPD arrived in BNE on Friday.the one in Melbourne would be the first one VH-VOZ.

 

[kpc]

DJ's 1/2 year loss of $100M wont help..and with no dividend or little likeihood of an end of year one from their provided outlook ,wont have people knocking down their brokers door to buy them .

Virgin Blue posts $100m loss | Business | News.com.au
Could DJ cease to exist if this continues further? I certainly hope so as you can imagine the "Red Rat" without them

 

[ANstar]

Could DJ cease to exist if this continues further?

alot of the charges seem to be one off's

- Hedging
- Forex
- V Aus start up

So I would expect things to imrove in that respect.

 

[moa999]

Two actually,the second one,VH-VPD arrived in BNE on Friday.the one in Melbourne would be the first one VH-VOZ.

Saw VPD parked in the far backcorner of BNE airport today at the Intl end, taking the backroad out of the airport

 

[brissyflyer]

Most of the 100m is one off VA setup and non cash adjustments.

A comparison of some base figures for DJ & QF for the six months
DJ Profit before Tax 60m down 68.9%
QF Profit before Tax 288m down 68.2%

DJ Revenue up 11.5%
QF Revenue up 1.7%

Also VBA share price remained steady today so it would appear the market is quite okay with the results.

 

[Nigelinoz]

alot of the charges seem to be one off's

- Hedging
- Forex
- V Aus start up

So I would expect things to imrove in that respect.

Agreed,and a lot of the start up costs associated with V Aust would probably be due to them having to rebook passengers after the Boeing strike delayed the start,and one would think that their (Virgin Blue) lawyers would be in discussion with Boeing about compensation.

 

[ANstar]

Is it also accurate to say DJ's cash flow improved, whereas QF's actually dropped from $800M to 350M in the same period?

 

[Mal]

I think a bigger question (and one that has been asked recently in various media), is whether DJ are a potential takeover target - and if so, who would be interested.

 

[lovetravellingoz]

I think a bigger question (and one that has been asked recently in various media), is whether DJ are a potential takeover target - and if so, who would be interested.

Well from my own selfish standpoint it would be nice if SQ took them over.

 

[ANstar]

Well from my own selfish stanpoint it would be nice if SQ took them over.

Why?

They took over as much of Atlantic as they would be able to of DJ and Virign Atlantic hasn't really changed that much with their input.

 

[Nigelinoz]

I think a bigger question (and one that has been asked recently in various media), is whether DJ are a potential takeover target - and if so, who would be interested.

The other question would be is their an airline anywhere in the world that
(a) has the money to try a takeover,and (b) that would be willing to try with the world aviation market the way it is.,one would think most airline CEO's would be concentrating on running their own airlines instead of thinking about ways to run another.

 

[lovetravellingoz]

Why?

.

To have a proper Star Alliance Domestic connection.
(and I did say from my own selfish standpoint....)

 

[ANstar]

To have a proper Star Alliance Domestic connection.
(and I did say from my own selfish standpoint....)

LoL... I understand your POV - what I was trying to say is just because singapore airline could buy 49%, it doesn;t mean they would go to Star Alliance.

They have 49% of Virgin Atlantic, yet Virgin Atlantic has not joined.

But I agree it owuld be nice to have DJ in STAR.

 

[Nigelinoz]

Well from my own selfish standpoint it would be nice if SQ took them over.

I would think that SQ has enough trouble at the moment with loss making Aussie airlines via it's stake in Tiger.

 

[comint]

I think a bigger question (and one that has been asked recently in various media), is whether DJ are a potential takeover target - and if so, who would be interested.

Makes me wonder if Air NZ would be interested (or could afford to be) in DJ's Pacific Blue operations? [Virgin Blue Group currently operating as a LCC, NWC & FSA in different markets, seems a less than cohesive strategy.]

 

[dajop]

Why?

They took over as much of Atlantic as they would be able to of DJ and Virign Atlantic hasn't really changed that much with their input.

With divestment of VA/Pacific Blue, it would be different - couldn't a foreign airline own a much larger stake in "Virgin Blue" than 49%. I guess for the likes of SQ, VA is (was - in the current circumstances?) the juicy bit ...