Virgin Blue worth less than a 777

[pauly7]

Probably a silly question, but in all the reports they say DJ are parking around 5 aircraft amongst firing 400 ppl. Where are they storing their 'temporarily retired' aicraft does anyone know? Just out of interest...

I imagine they will probably be all 737s as it appears they are downsizing some routes to the E-jets.

Answered my own question (for once!)... They aren't parking them anywhere - they are leaving Aus altogether. Read an article in todays AFR saying Virgin Blue are re-leasing/selling 4 B737's back to a Chinese company (forget the name), the leased ones are on a term of 10 years...

May help to explain also the downgrade of those Mel-Syd flights to the E jet.

Hopefully they got rid of the non-head wing ones

 

[Evan]

I thought that was just a sell and lease back of 4 aircraft. I did not think it was to get rid of old ones.
E

 

[brissyflyer]

The latest CommSec Analysis (dated 26/2) is reasonably positive. Their current rating is Accumulate/Market Perform and valuation is 83c per share.

They state the key catalysts are the successful launch of VA and increased demand and that soft demand will continue to weigh on the stock in the short term.

 

[comint]

May help to explain also the downgrade of those Mel-Syd flights to the E jet.

LOL, beware the seduction of an aircraft with no middle seats! As far as I am concerned, getting to fly on a DJ E-Jet is an upgrade over a 737 (I really don't need in-flight entertainment on short duration flights, and I've learnt to duck that little bit lower when getting into my seat). E-JET = VERY COMFORTABLE AIRCRAFT IN ECONOMY!

 

[NM]

Answered my own question (for once!)... They aren't parking them anywhere - they are leaving Aus altogether. Read an article in todays AFR saying Virgin Blue are re-leasing/selling 4 B737's back to a Chinese company (forget the name), the leased ones are on a term of 10 years...

May help to explain also the downgrade of those Mel-Syd flights to the E jet.

Hopefully they got rid of the non-head wing ones

Evan is correct. The 4 B737s you reference are being sold to BOC (Chinese based finance/leasing company) to be leased back to Virgin Blue for a 10 year term. So those aircraft are not being parked and are not leaving the Virgin Blue fleet. Its just a way of raising cash now and paying later. Sale and lease-back is a common accounting practice, not only in the airline industry but across the board. Many companies have done that with real estate/properties as a way of tapping the cash value of their assets.

 

[straitman]

With DJ shares so low maybe the AFFers should pool together to buy 51% :!:

 

[Platy]

With DJ shares so low maybe the AFFers should pool together to buy 51% :!:

And then you just need to train up a couple of us from the forum as pilots and we'd have our own airline!!! :shock:

 

[Nigelinoz]

And then you just need to train up a couple of us from the forum as pilots and we'd have our own airline!!! :shock:

Yeah ! Then WE could decide who get's an upgrade ,as for the pilot issue,well I've got a few hours up in a PA38 and I don't think a 737 would be much more complicated to fly than that so I'll put my hand up.

 

[straitman]

Yeah ! Then WE could decide who get's an upgrade ,as for the pilot issue,well I've got a few hours up in a PA38 and I don't think a 737 would be much more complicated to fly than that so I'll put my hand up.

I'm trying to retire from flying but could probably do some C&T for a short while. :mrgreen:

 

[straitman]

Shame there wouldn't be a job for platy though,he's too busy looking after the catering standards at QF, and I know how dedicated he is to his job so he wouldn't have time to work for us as well.

I'm sure there would be a place for him as an honorary wine taster :!:

 

[Standby]

from news.com.au:

Interesting that since the first Post on the 23rd Feb the shares have fallen another 17% in 12 days to 19.5 and using the orig market cap of 247 as orig quoted that has dropped to $204M (give or take a few bob).
So in 10days they have effectivey lost 2/3rds of the value of a sale and lease back 737 (using a list price in the mid-high 60M mark).
So at the moment you can pick up a fleet of 80+ jets for low 200M = 3 and a bit 737s. I think lots of valid speculation about takeover target

 

[codash1099]

Nice to see that they are still thinking positively -

Virgin Blue mulls order for up to 60 180-seat aircraft

 

[pauly7]

Nice to see that they are still thinking positively -

Virgin Blue mulls order for up to 60 180-seat aircraft

Yes its great to see they are still thinking LT. Thinking about an open letter to BG to get them to switch to fabric seats when they order!

 

[Evan]

Yes its great to see they are still thinking LT. Thinking about an open letter to BG to get them to switch to fabric seats when they order!

Leather seats work out cheaper for LCC's
Pity fabric is nicer for us.....

I guess it all depends if DJ wan't to go a bit more up-market and ditch the leather with the LCC image.

And yes i know BA for example use leather on there Europe product but i still hate it. Give me fabric any day !

E

 

[jpk]

I think lots of valid speculation about takeover target

I agree. A bigger concern for DJ is cash reserves. If they keep losing money (and VA will not make money for another 18 months), they may become insolvent. Cashflow is priority 1 for them right now.

 

[Evan]

I agree. A bigger concern for DJ is cash reserves. If they keep losing money (and VA will not make money for another 18 months), they may become insolvent. Cashflow is priority 1 for them right now.

Thats right and QF recently raised more cash even though they had a lot on hand, i think they wanted to make sure they have the cash on hand early and not try to raise it at the last minute should they need it. Also they have aircraft delivery to fund.

How many of DJ's planes are owned and how many leased ?

E

 

[NM]

Virgin Blue shares worst performers in region

from news.com.au:

VIRGIN Blue shares have dropped to a record low of just 18.5c, making the company the worst performing airline stock in the Asia Pacific region.

The share value of the Brisbane carrier has fallen 37.7 per cent since the beginning of January, more than double the 15 per cent drop recorded by the ASX 200.