VBA 0.00% 35.5¢ virgin blue holdings limited

sabre,i'm still negative on vba.but heres a post from me that...

  1. 5,048 Posts.
    sabre,

    i'm still negative on vba.

    but heres a post from me that actually found a fault in jb's report and has now been confirmed by jbw and vba.

    so you may not like what i say but it may be a clue for you.

    in godfreys interview on sunday he said he believes that staff cuts wont be necesary because capacity was going to be increasing but in the same interview he said he would reduce capacity.

    there was also some other starnge comments in that thing that is called an interview.

    im trying to help...lol

    here's that post

    pecora,

    that article explains the situation pretty well...BUT

    it refers to vba having to increase airfares to cover the price of fuel but there is a problem with this if it is the only solution considered.

    vba fleet size is increasing whilst demand is falling due to the economic environment we are in.

    if capacity is increasing, costs are rising and demand is falling then increasing the cost of a ticket will simply further reduce demand and losses will continue to mount.

    what the article didn't say was that vba need to dramatically trim their flight schedule and arrive at an available capacity that matches the demand that will support higher ticket prices.

    simply, every flight needs to be 80+% full with every seat sold at a price that at the very least covers costs....in order to do this prices need to rise which in turn will reduce demand which means the available capacity needs to be reduced big time.

    as the article said, anybody throwing money at vba will lose it because the way vba is presently structured it is a monster money muncher and will be insolvent regardless of the cash injected.

    top 3 things to do,

    1/ delay v australias start indefinetely
    2/ dramatically reduce v blues schedule
    3/ shut down most if not all of p blues operation

    cheers
 
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