Congratulations on the new payrates; it's nice to see wages going up instead of the other direction.
I've read through this thread and Bocaflyer's posts really got under my skin because he's wrong on so many things that are easily verifiable.
Quote:
Originally Posted by Bocaflyer
Virgin is operationally profitable gang. FWIW. They have been for three straight quarters now.
Step 1. Go to Virgin America website.
Step 2. Go to Press Releases.
Step 3. Locate last three quarterly reports.
Virgin America | Press Releases
Virgin America | Press Releases
Virgin America | Press Releases
Step 4. Find Operating Profit/Loss in press release.
First Quarter: $49 million Operating Loss
Second Quarter: $4.078 million Operating Loss
Third Quarter: $15.83 million Operating Profit
Step 5. Do the math
One quarter of operating profit + one quarter of operating loss + one quarter of operating loss = One quarter of operating profits in a row.
Quote:
Originally Posted by Bocaflyer
They are paying their investors a fortune in interest. So basically everyone over there is extremely happy from a Finacial health respect.
OK, they're paying a fortune in interest on a megafortune in loans. That makes them happy from a financial health respect?
VX borrowed $150 million in December 2011, which went directly to cash on hand ($160 million at end of December 2011). VX was at $75 million cash on hand at the end of September 2012.
VX blew through $85 million in cash in 9 months, and had $75 million cash on hand at the end of the last quarterly report. What sane person would be happy about that?
Virgin America lands $150M to bolster cash cushion - San Francisco Business Times
Quote:
Originally Posted by Bocaflyer
The investors are getting richer and the operation is paying for itself finally.
The investors shelled out $150 million last December. Plus there have been several other huge loans in the past.
In the last 9 months, those investors have received $83.557 million.
If that's your definition of getting rich, I'd like to borrow money from you.
VX had an operating loss of $36.837 million for the first three quarters of 2012. Based on the latest numbers, the operation is NOT paying for itself.
Quote:
Originally Posted by Bocaflyer
But they always said 50 airplanes before profit, even 3 years ago when I got hired at 28 airplanes. They forecasted that one pretty good, the profits started just around 50 planes. (53 now)
No. Cush stated in early 2009 that VX would be profitable in 2010. And he's made public statements about VX being profitable in just about every quarter since.
Virgin America CEO sees good times ahead - SFGate
VX has 52 aircraft. They are due to take delivery of N261VA sometime this month which will bring them to 53 aircraft.
Production List Search - Planespotters.net Just Aviation
Quote:
Originally Posted by Bocaflyer
It basically means when they IPO and the investors are paid off, they are net profitable. I don't see the investors rushing for an IPO anymore, now that they are getting huge returns without investing more capital. It's a win win for both sides now. But when they do IPO it's a NET profitable airline.
Huge returns without investing more capital? How do you know what VX's current cash position is? How do you know they haven't gotten more money from investors since Dec 2011?
Do you know how much debt they owe to investors? How do you know an IPO will cover all of the current debt?
Good luck to everyone at VX.