Virgin America orders 40 A320s

[Chairman]

7 or 8 years ago the argument was the Jet Blue was not paying for there airplanes once that happened they would be introuble. 10 years ago pilots were bailing from SWA, FEDEX, & UPS for UAL,AMR, & DAL. Only time will tell but I will not be one to throw pies at the clown! We will see but VX is about the only airline out there trying to focus on the customer you know the ones that really determine who makes a profit or not.

Chairman

 

[Dizel8]

Yeah, no one else cares about the customer!

Please, give me a break!

 

[Yuppyguppy]

VA gave the pilots and all front line employees a raise in June and increased our 401k match this spring. VA also recently bought new scheduling software. VA just recently spent money updating our industry leading inflight entertainment system. We are building a new sim training building in San Fran. And, VA is once again paying for every single employee to come to San Fran for our annual pep rally this fall. Next month VA is holding our three year old birthday bash complete with a carnival for the kids and free booze for the adults.

Sounds like we're teetering on the edge of bankruptcy.

Oh, I forgot to list some other expenditures... VA recently increased our expensive San Fran office space by 1/3. They are buying new uniforms for all the crew members this winter. A few months ago they increased the minimum days off for reserve pilots and FAs.

For those of you that worked at Skybus; is this what it looked like right before they turned out the lights?

Before you answer, I forgot to list a couple other developments... We are taking delivery of six more aircraft this year, and twelve next year. We just started service to Toronto and we're starting service to Orlando, Cancun, and Cabo before years end. We are also starting service to one other yet to be announced city before years end.

Let's not forget about Terminal 2 in SFO. VA is moving into terminal 2 when construction is complete next spring. The city built the terminal to VA's specs. It's supposed to be the prettiest terminal in the United States with sweeping views of the bay. I suppose that's a lot like Skybus. Skybus pax would get a nice view of Columbus from the top of the airstairs because the company was too cheap to pay for a Jet bridge.

Not to worry you are using Richard "DICK" Bransons money. It's launderd and filtered to your operation. I don't care what you say but you can't keep buying airplanes and losing money.

 

[Dizel8]

Why not? Spend 'till your broke, it's the American way!

 

[NoJoy]

For all the folks that love to hate:

http://www.youtube.com/watch?v=7AY88BQZWos

 

[NEDude]

Virgin America is not 'burning cash'.

Q3 2009 $23.2 million cash
Q4 2009 $ 22.0 million cash
Q1 2010 $20.0 million cash

Initial reports for Q2 2010 are significant profit. As reported several times - financial numbers are ahead of projected and well ahead of target for a full year profit.

As stated - New simulator center under construction, just announced order for up to 60 additional airplanes, upgraded entertainment system. Sorry to disappoint but these are not the signs of a company teetering on the edge.

And before you compare Skybus with their 65 aircraft order to Virgin America, remember their order came in October 2006, more than six months before their first flight. And skybus was airborne for not even eleven months. Virgin's order came just weeks before the third anniversary of operations and on the heels of a very successful quarter.

Most importantly - the investors in the company are acting very confident and are not acting like they are ready to throw in the towel. In fact given the recent news (all of it - not just the aircraft order) the investors are acting extremely confident. And they, not the folks on FI, are the ones who count.

 

[turbodriver]

Where do I sign up?

It'd be nice to work with a company that had an actual vision of real growth. Not just fleet reallocation.

 

[FlyinPiker]

As stated - New simulator center under construction, just announced order for up to 60 additional airplanes, upgraded entertainment system. Sorry to disappoint but these are not the signs of a company teetering on the edge.

And before you compare Skybus with their 65 aircraft order to Virgin America, remember their order came in October 2006, more than six months before their first flight. And skybus was airborne for not even eleven months. Virgin's order came just weeks before the third anniversary of operations and on the heels of a very successful quarter.

Most importantly - the investors in the company are acting very confident and are not acting like they are ready to throw in the towel. In fact given the recent news (all of it - not just the aircraft order) the investors are acting extremely confident. And they, not the folks on FI, are the ones who count.

Fast-growing Virgin America has signed a non-binding memorandum of understanding (MOU) with Airbus at the Farnborough International Air Show for 40 A320s, along with options on 20 more.
The new aircraft would be delivered from 2013 through 2016 with 10 firm deliveries per year on average, and the 20 additional optioned aircraft would be delivered in 2017 and 2018.
If firmed into an order, the MOU (signed on July 22, 2010) would expand Virgin America’s all-A320-family fleet to 90 aircraft. The airline indicated it would announce its choice of engines for the additional aircraft once the purchase agreement is finalized.

What order do you keep talking about? I really don't see this as any more than a chance to get the name in the paper at an airshow. The MOU could have been for 100 aircraft, it doesn't mean they actually have a plan or financial obligation for them.

I think what happens with the batch of airplanes coming now will determine whether this all works out or not. As for displaying confidence, "they're all in" at this point. They have to. It's grow or die. If they ever want to see a return on their investment they have to keep pushing forward. That's how it always works. Western Pacific comes to mind. I'm not saying that's VA's fate, but they also pushed forward strong, displayed confidence ( for the stake of customers & investors) got the city to build a new terminal, had -700's on order, etc, etc...right up till the very end.

VA DOES have Branson though. I don't see him as being one to just roll over...I'd say that's one of the best things they've got going for them.

And for the record I think Skybus actually had firm orders for all of their aircraft.

 

[clickclickboom]

guys sit back and let them ride the wave of fun for a while.. Lets face it they are excited.. ground floor possible ipo with career captain outlook.
The jetblue guys did it and many before them..

Then some day they will wake up and realize that they have given up a couple of million at the end of their career to build and airline that when up to critical mass will look back to those same employees for " efficiencies"

JB has done it to perfection

 

[BeachBummer]

I'm actually surprised they bothered to show a +30mil. for the second Q here at JB. There must not be any other airlines that need live tv installed. No where to spend our efficiencies.