#21
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no Pieter, there is a choice and that choice is not to buy the product that is grossly overpriced, personally, I know it will go down because the bubble always bursts...but what I'd really love is for oil to have a higher price and that flow through to the bowser so more people reconsider their lifestyle.
$2.50 p/l is fine with me. |
#22
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I've seen plenty of 24 hour delays with UA ex-SYD. I don't see how you can mix the two issues up - 1. with delays, 2. with quality service. Quote:
I am glad I did not buy Virgin Blue shares. I'd be depressed if I bought them. I wonder how the Embraers and the V Australia expansion are going to impact DJ - certainly sidetracks them a lot. The V Australia expansion will not be cheap. With regards to the Embraer it will complicate things - for example Jetblue had an all-A320 fleet and then got the E-jets. Last edited by D Chan; 5th June 2008 at 09:23 PM. |
#23
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#24
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Most interesting thing to watch for mine will be the E-Jets. Virgin have a lot to learn about regional ops (hellooooo, fog season!!) and it is much harder to turn a profit with jets over the shorter stage lengths you get in the regional environment than it is with turboprops. When the going gets tough company-wide, will the Jungle Jets be the first to go?
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#25
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LoL... thats what I was paying in London back in 2006
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#26
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Of course Virgin will get through this, the "article" in the paper was pretty poor in my opinion.
Of course ANY company could fold if costs stay high and they dont' raise prices to follow. Heck Qantas would fold too IF oil prices stay high and they didnt' keep increasing fares to cover it. The FACTS from the article If jet fuel were to stay at current levels for several years and Virgin Blue could not significantly increase fares, it would not survive, Two 5% rises would allow the airline to survive. As it stands now, oil is back down to around $120 a barrel from $135 a week or so ago. It SHOULD go back down below $100 soon. As for the QF vs DJ debate, that has been done and dusted on here so many times, so lets stick to the newspaper "article" |
#27
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http://www.wtrg.com/oil_graphs/oilprice1947.gif
Admittedly, that last spike of the graph is a bit more than that spike in the middle, but the spikes are caused by the same events. That war in Iraq has gotta end one day, just like that spike in oil prices has to end one day too, . Mick |
#28
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having 2 expansions at the same time really complicates things for them. The international expansion to the US would probably be a VERY costly exercise - new a/c (even if it is leased), new staff, new departments, new products and so on - all of these are $$$$ - they'll need to do really well or else they would be in trouble. With regard to oil, I still reckon it is a bubble. What goes up must fall down again. Just like the 70s oil shock. Oil prices went down after that. Probably will in say 5 yrs time... but probably closer to the $80-100 US barrel range. People are blaming China but I did read somewhere that their consumption has actually decreased last few years - they might be stockpiling oil though. I don't think the flying public has much to worry about. If one airline leaves the scene another will fill the void. Just like how Virgin Blue filled Ansett's departure. All we should worry about is the company staff and their jobs. |
#29
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I cant help but think that Virgin Blue's market doesnt really exist.
They are trying to get more business customers and have been for quite a while. Full Service? Qantas Budget? Jetsar, Tiger. Now, Virgin is no tiger or jetstar. They appeal to a higher market, and also charge (although slightly) larger prices. I can see them being squeezed out of the market. But, i think you guys may be underestimating the power of VAustralia. While it will take time and money, i think that VAustralia will save the Virgin Blue group if it comes down to it. my 2c |
#30
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they still have around $700-800 million cash in the bank - even if oil prices stay this high and they make a feared $200M loss in 08/09 they still have a couple of years of liuquidity.
These articles are a bit too much doom and gloom spin Response from Godfrey http://www.news.com.au/business/stor...-14334,00.html Last edited by Michael Morrison; 6th June 2008 at 08:47 AM. |
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