"The fare, which is good for travel until October 24 next year and on sale until December 29, is more than $600 cheaper than a Qantas March flight obtained yesterday and $500 below than V Australia's previous cheapest offering"
Don't you think that this is extreme undercutting? They'd be undercutting their bottom line too. Reminds me of cheap asian stores, selling everything 50%, heaps of customers, business brisk but making no money in that business model. They got acouple of billion dollars to pay off too remember, will the profit margin be enough? Is it to encourage return business, will the return business come if the price is higher later or will the low fare rates still be needed to entice people on board?
Good stock for trading, looks like it bottomed again, sell out again above .30, kinda wish these companies would stop thinking their smarter than the market and hedging fuel costs, makes them look stupid.
One thing good about heavily endebted companies is if reflation takes off, it makes the value of debt less, makes the company worth more than someone not holding debt.
VBA Price at posting:
23.2¢ Sentiment: None Disclosure: Not Held
