Originally Posted by
DigDug
There is no airline currently operating that isn't expecting to be profitable in 2010. None. There cannot be a more useless forecast than that one, sorry.
Its hard for me to imagine that investors injected 100 mil for any other reason than the struggling start-up carrier needed it.
DigDug.. first off, you can't compare the growth plan of a startup and a mature business... more over, you can't expect a startup, with the huge ramp up costs to turn a profit with in a few months of operations.
Think about it, VX started revenue service in August.. but has been accruing costs and ramp up costs for a year prior.. How on God's earth can they do anything but loose a lot of cash in the first few quarters until their fleet size reaches a level that makes sense to their overhead?
Finally, the $100M was a planned investment as part of the business plan. The fact that it was put in, rather than withheld tells me the investors have confidence in the company and decided to continue with their plans of growth. They could have done like the investors at SX and simply cut their losses and pulled the plug..