Agree with you, excepting that the NZ Domestic Losses were stopped long ago. The report re Virgin NZ just released is very out of date and misleading. NZ Virgin domestic operations were stopped in Oct 10, and the report relates to NZ Virgin op's through to June 11. So this info is already known and long out of date. Also NZ domestic operations were included in Virgins International accounts for reporting purposes, and these have already proved to be profitable as stated in the Citi Oz and NZ Conference in Oct 2011, so no worries there. Be interesting to see though if the Velocity Program pulls its weight in the Feb 2012 announcement, as it also may become profitable. If so then V Blue goes from being a simple leisure carrier with loss making International operations - To become V Australia - with revenue from: Domestic Leisure, domestic business, profitable International Division, profitable regional operations and the small but profitable Virgin Samoa. The airline rapidly approaches 100 aircraft and, if Velocity kicks in a little or is only at break even on paper then it will be a very bright Feb announcement to the market. Of course the main thing to look for is the percentage of revenue that the domestic business class add's (last stated at 13%) this must increase greatly for a strong financial future, I'm looking for at least 20% of revenue to be derived from the new Business Class, because this would underpin future Bus Class growth toward 40 - 50%, in the long term, which would add massively to the profitability of the business. Regards Steve
VAH Price at posting:
30.0¢ Sentiment: Buy Disclosure: Not Held
