Virgin Australia Records $355 Million Loss
Aug 29, 2014, 8:33 am
#1
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Virgin Australia Records $355 Million Loss
Virgin Australia has reported a 2013-2014 financial year loss of $355.6 million. Most of that can be attributed to restructuring costs and excess capacity.
The airline is also looking at other ways to cut costs.
http://www.ausbt.com.au/virgin-austr...5-million-loss
To claw its way back into the black, Virgin Australia will sell 35% of its Velocity Frequent Flyer program to Affinity Equity Partners for $336 million.
http://www.ausbt.com.au/virgin-austr...5-million-loss
Aug 29, 2014, 5:27 pm
#3
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From http://www.theaustralian.com.au/news...dca07db0327670
A DAY after Qantas unveiled a record loss of $2.8 billion, Virgin on Friday revealed it tripled the value of red ink on its books to $355.6 million.
"The 2014 financial year has seen one of the most difficult operating environments in the history of Australian aviation," Virgin Australia chief John Borghetti said.
One-off costs related to restructures and fleet values impacted both companies results, but Virgin's underlying pre-tax loss still came in at $211.7 million, while Qantas booked an underlying pre-tax loss of $646 million.
Proportional to the size of their businesses, Virgin's loss was much worse
"The 2014 financial year has seen one of the most difficult operating environments in the history of Australian aviation," Virgin Australia chief John Borghetti said.
One-off costs related to restructures and fleet values impacted both companies results, but Virgin's underlying pre-tax loss still came in at $211.7 million, while Qantas booked an underlying pre-tax loss of $646 million.
Proportional to the size of their businesses, Virgin's loss was much worse
Aug 29, 2014, 5:30 pm
#4
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Sep 12, 2014, 6:39 am
#6
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They could do a lot better I am sure, but the last couple of years haven't been about making profits (in the short term), it's been about the bigger player trying to drive the other one out of the market to defend its corporate market share. Big fail it seems. I think now that seems to be over and it'll eventually be back to the two (plus two) airline policy on most routes (the only routes with three independent players, from memory are MEL-MQL, SYD-ABX and SYD-BNK)!