Virgin Australia Holdings Limited (VAH) was formerly known as Virgin Blue Holdings Limited (VBA).
Previous discussion of this company can be found in the VBA thread: https://www.aussiestockforums.com/forums/showthread.php?t=266
I am looking at an entry in to VAH shortly.
Only because QAN are such losers.
I hesitate as one loose bolt can wipe much value from airline shares.
Any thoughts?
A chart.
gg
I think theres alot better stocks to be buying than this atm.
I think theres alot better stocks to be buying than this atm.
And your reasons mate?
gg
I am looking at an entry in to VAH shortly.
Only because QAN are such losers.
I hesitate as one loose bolt can wipe much value from airline shares.
Any thoughts?
A chart.
gg
I am thinking about getting in on this one as a long term investment. Couple of thousand should do it?
Over the long term virtually every airline in the World loses money and/or goes broke.
They are an extremely capital intensive business, with high hard to control fixed costs (fuel, maintenance) and constant cost pressures. Why do you thinkVAH would be any different than all the others globally?
Personally i would never ever buy an airline for the long term.
Absolutely. In the last 10 years every major airline, with the exception of Southwest, in the US has been into Chapter 11 protection at some stage. VAH's golden years were the period between Ansett going broke and the arrival of Jetstar. Domesticaly, they do OK, especially on the main trunk routes (the East Coast capitals triangle) where volume is fairly predictable as is pricing. I actually have somewhere a p/l breakdown of a flight Sydney-Melbourne, I did it a couple of years ago but if my estimates were correct it's actually quite profitable assuming you get bums on seats.
They want to expand internationally but then it gets really competitive, fitting out planes with new entertainment systems and seats costs big money and it can be really hard to earn it back especially when the Asian carriers can operate with government subsidies and vastly decreased labour costs.
Prawn / McLoving
Don't quote me on this but I remember seeing that Ryanair was one of the world's most profitable airlines (consistently???). Not saying it can maintain over the long haul - but been around for a while and seems to do ok with their ridiculous fares and crazy costs?!?!
Absolutely. In the last 10 years every major airline, with the exception of Southwest, in the US has been into Chapter 11 protection at some stage. VAH's golden years were the period between Ansett going broke and the arrival of Jetstar. Domesticaly, they do OK, especially on the main trunk routes (the East Coast capitals triangle) where volume is fairly predictable as is pricing. I actually have somewhere a p/l breakdown of a flight Sydney-Melbourne, I did it a couple of years ago but if my estimates were correct it's actually quite profitable assuming you get bums on seats.
They want to expand internationally but then it gets really competitive, fitting out planes with new entertainment systems and seats costs big money and it can be really hard to earn it back especially when the Asian carriers can operate with government subsidies and vastly decreased labour costs.
Most of VA's international sectors are flown by the likes of SQ, EY and so on.
I think QF will be an interesting one come 2016. With forecasts of international to return to profit after the Asia/Middle East reroute and hopefully *fingers crossed* the 787 on the premises.
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