EXTRACT:http://www.centreforaviation.com/news/share-market/2010/0...

EXTRACT:
http://www.centreforaviation.com/news/share-market/2010/06/04/airasia-and-virgin-blue-shares-jump-rbs-warns-of-continued-challenge-to-virgin-blue-profitability/page1

4TH JUNE 2010

Also gaining yesterday was Virgin Blue, with a 7.1% gain (following a 6.6% fall on Wednesday and a 7.6% reduction on Tuesday).

Royal Bank of Scotland commented that, following a meeting with new Virgin Blue CEO, John Borghetti on 03-Jun-2010, it remains underwhelmed, given the short-term challenges facing the business. RBS added that it expects profitability to remain challenged over the next 12 months, adding, we believe short-term momentum is against the stock and may push the share price lower. However, on a more positive note, RBS commented, we dont view the business as a going-concern risk.