Why is Virgin Blue´s share price suffering?

Discussion in 'Open Discussion' started by sambo, Jun 14, 2004.

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  1. sambo

    sambo Intern

    Jun 2, 2004
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    Melbourne
    I just noticed that Virgin blue´s share price started a 25% dive around March 31. Does anyone know what may have triggered this? Is it purely the perceived threat posed by Jetstar?

    Sam
     

  2. wleong

    wleong Intern

    Jan 26, 2003
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    My assumptions would be related to Oil prices and a little bit of competition.
     
  3. straitman

    Moderator

    Apr 27, 2003
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    and ... the tight rope they tread :!:
     
  4. QF WP

    Moderator

    Jun 20, 2002
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    Gee, where do I start - articles like these:

    Virgin Blue is keen to follow domestic rival Qantas into the developing low-cost Asian market and has already held talks with a number of prospective partners...(June 14)

    High oil prices threaten the recovery of the global airline industry, which is emerging from the crisis caused by last year's SARS epidemic and the Iraq war, said the head of the International Air Transport Association...(28 May)

    jetstar is hoping to capture two-thirds of all domestic passengers as part of a strategy to protect parent airline Qantas' market share from fellow budget flyer Virgin Blue...(26 May)

    Virgin shares still in decent... (May 19 )

    Virgin Blue yesterday failed to shake off concerns its growth may have partly stalled, after a solid full-year profit was clouded by a sharp fall in passenger yields and the looming launch of low-cost rival Jetstar next week... (May 18 )

    Virgin Blue will lift airfares next week, imposing a fuel surcharge on all bookings to counter the cost of rising oil prices...(May 14 )

    Virgin Blue shares have struck turbulence, struggling to remain above their issue price amid fears of rising competition as analysts concede their initial estimates for the budget carrier's earnings were too optimistic...(23 April)

    I trust these should give you some idea, sambo....
     
  5. clifford

    clifford Established Member

    Jul 6, 2004
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    Canberra / London
    At the risk of being considered facetious, could I suggest it’s because VB is an … airline.

    In my opinion, airlines and investing don't mix, unless ... you are Richard Branson (or someone who has just been declared bankrupt).

    You must have heard the advice on how to make a million in the airline industry ... "start with 2 million" ...

    (I wouldn't admit that I've been associated with the aviation industry for over 30 years, either).
     
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