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Could VA be next?

I was shocked to read this today:

"Avondale Partners airline analyst Bob McAdoo, predicted in a research note Monday that upstart Virgin America -- which is privately held and therefore releases less operating information than publicly owned carriers -- could be the next casualty.
McAdoo cited preliminary filings with the Department of Transportation that suggest the carrier is rapidly losing money, and flew planes that were considerably emptier than some of its competitors through the end of last year.
"We caution that these estimates are based on limited (Transportation Department) filings and may be overly pessimistic," he wrote. "However, given the ownership structure of Virgin America ... we see parallels between Virgin and the three failed airlines."
Virgin America spokeswoman Abby Lunardini, reached as the carrier prepared to launch a new route between Los Angeles and Seattle, dismissed concerns about the company's health and said the Burlingame, Calif.-based carrier's occupancy levels had improved considerably in recent weeks.
"Our business model is strong and we're continuing to grow aggressively," she said."

:eek:

Anyone have any other information on the subject? I thought VA was doing better than this.

They recently advertised a "2-for-1" sale, out of LAX and SFO, which the analysts prognosticated that they desperately needed to raise cash.

Not sure if they're in so much turmoil, as they started out with $207 million last August, highest in history. They must have a cash reserve.

Can't sir richard just open his wallet and slip them a couple mil?

Quote:

Originally Posted by HoursHore (Post 360038)

Can't sir richard just open his wallet and slip them a couple mil?

Not unless he can get around the rules for foreign investment.

Quote:

Originally Posted by blastoff (Post 360041)

Not unless he can get around the rules for foreign investment.

Where there's a will there's a way. ;)

Quote:

Originally Posted by IFlyEm (Post 361711)

Where there's a will there's a way. ;)

How right you are!

http://online.wsj.com/article/SB1207...oo_hs&ru=yahoo
Virgin America Investors To Inject $100 Million

By Paulo Prada
Word Count: 533 | Companies Featured in This Article: Frontier Airlines Holdings
U.S. and British investors behind Virgin America, the start-up U.S. carrier conceived by Sir Richard Branson, say they can weather the current turbulence slamming airlines and plan to soon inject about $100 million of additional capital into the company.
Undeterred by record-high fuel prices and a shaky economic outlook, investors of the closely held airline based in Burlingame, Calif., are sticking to their original business plan and are moving ahead with financing for further expansion. Virgin America launched passenger service between San Francisco and New York last August, and later initiated service to Washington, Las Vegas and San Diego. This ...

Does anyone know how much money VA in lost in 2007?

Dear Teammates:

As you have no doubt heard, our industry has had a very challenging week. Three scheduled carriers, ATA, Aloha, and Skybus, have filed for Chapter 11 bankruptcy protection and have ceased operations. The primary culprits in each, we believe, is high fuel prices and the lack of liquidity. Airlines are cash intensive companies and when the cash runs dry, there are not a lot of options.

Fortunately, at Virgin America, we have adequate liquidity to see us through these difficult times for our industry. However, like every other airline, we remain exposed to consistently high fuel prices. The best way of combating high fuel prices is to make sure that you have enough revenue coming in the door to pay the bill and that is where you come in. Our airline has distinguished itself by offering a great product and a pleasant flying experience. Cool airplanes and a great IFE are part of it but, ultimately, it comes down to the people who are delivering the service. By staying focused on delivering the best guest service that we possibly can, you are doing your part to make our company successful and to ensure that we come out of this turmoil on top.

We have an aggressive growth plan at Virgin America and we are not wavering from it. We will double the number of aircraft in service by the end of the year and hopefully add 20 more next year. We have a great company, a great product and a bright future.

Thanks

David

Quote:

Originally Posted by GetErDun (Post 361962)

We have an aggressive growth plan at Virgin America and we are not wavering from it. We will double the number of aircraft in service by the end of the year and hopefully add 20 more next year. We have a great company, a great product and a bright future.

Thanks

David

That's what I'm talking about!!!!!!!:D

Quote:

Originally Posted by blastoff (Post 360041)

Not unless he can get around the rules for foreign investment.

Richard need only make a call to one of his investment banks in the UK and call in some favors and magically a US investor will appear. I think VX is safe.. had it been like SX with no billionaire money behind it, then we'd be writing the obituary. They're fortunate in that they can ride out this time, establish their market and grow the airline. SX could have done this had their investors been less skittish..