Champ,they put a collar in place at a max US$112 per barrel.The...

Champ,

they put a collar in place at a max US$112 per barrel.
The use of options ensures that they get to participate if the oil price falls below this level.

In fact, the collar means for every $1 below US$112, VBA make approx $6m profit all the way down to US$90.

So, a profit of $120m (I think US$), will further help them with the price of fuel.

I've got to say, of all the speculative investments people are punting on out there, VBA seems to me to be an absolute gem at current prices!

It is a solid business with Richard Branson as the majority shareholder. It is operating in a regulated environment, where major airlines in Asia and the Middle East would love to have license to fly.

It has access to $600m to cushion itself from any short term issues, and is a company that could easily see $1.50 to $2 in 2-3 years (obviously I'm hoping much sooner).

I see people talking up speculative resource companies that will not be able to access funding, and there is an industrial stock right here which may present to same type of lofty returns they are expecting on small cap resource companies, but without the same risk.

I have never liked owning airlines, however, I do think at the current price, VBA is just too good a value to refuse.

I intend to flick them once it gets really moving again well above $1 per share.