Malev, Jade Cargo, and Spainair.

Two where in the EU and one in China.

I haven't seen action like this since spring of 2008 whick lead up to the financial meltdown of Sept. 2008.

 

I expect to see several more fall in Europe as well.

 

Hopefully a couple will fail in the U.S., too.

 

Virgin America is set up for failure.

 

How do you figure that?

Not that VA should be in a foreign thread, but I always wonder where comments like that come from. Finances look very good for an airline, from the outside at least, so it would be interesting to see why you reckon they are set up to go. . .

Results are as below:

Third Quarter 2011 Reporting Highlights:
Operating results: The airline reported a $16.2 million operating profit in the third quarter and a $3.3 million net loss. The airline's yield per passenger mile was 12.3 cents , up 10 percent compared to the third quarter of 2010.
Load factors: The airline reported an 84.2 percent load factor in the third quarter, on a 32 percent increase in scheduled service capacity over the year earlier quarter – compared to an industry average capacity which remained flat.
Top line progress: RASM increased 9 percent over the third quarter of 2010. Virgin America's average fare increased 5 percent over the prior year.
Cost control: Operating expense per available seat mile excluding fuel (ex-fuel CASM) increased by 2 percent versus third quarter 2010, primarily as a result of investment in the Company's growth (training, people and aircraft in modification).
Cash: The airline ended the quarter with $24 million in unrestricted cash and $42 million in total liquidity. This excludes the latest debt facility, which closed in December 2011 .

 

As a privately-held company, are they held to the same accounting standards as a publicly traded company?

More to the point, can they "cook the books" more easily since they are privately owned?

 

The industry can only hope.

Here's how:

No matter how much lipstick you apply, a pig is still a pig. Remember, ONE PROFITABLE QUARTER in 4 years.

They're certainly not held to the same reporting standards, therefore they can cook the books.

 

Jade Cargo isn't dead yet. They are seeking new financing and expect to see them start up again in March albeit slightly altered and with new investors.

 

Wasn't JADE a joint venture between LH and Shenzhen?

 

The story I have heard is that Air China bought a stake in Jade and since Air China has their own cargo division they're kind of letting Jade die on the vine while taking their good contracts.


TP