Virgin Blue's Outlook
 

-Toll to retain Virgin Blue stake for now
-Virgin expects lower profit
-Virgin to introduce fuel levy

http://news.smh.com.au/virgin-blue-e...0411-25js.html

http://news.smh.com.au/toll-to-retai...0411-25jv.html

To be honest, I would expect them to have a lower profit for this next half as they will have a huge amount of expense relating to V Australia and the intorudction of more EMB 190's

Hopefully they can recover some of this once both new ops are settled down in 12 months or so

The set up cost for V Australia will be enormous and it definitely won't be easy for them. I'm not sure whether Virgin Blue is trying to do too many things at once e.g. E-jets to try to capture more of the regional market / and the international expansion.

Something like 40m for the flight simulator, wasn't it? And Purchasing all those planes, they would need a enormous budget

But hey Virgin makes decent profits, so why not spend it, to try and make more:)(we hope)

V Australia is going to be a winner.

As long as it is by itself with QF and United for a while to get on its feet, it will be a great investment for Virgin.

Virgin Blue shares are currently down to around 93 cents.

This is a major concern, share price is falling....
Profit down...
I hope that they pick up..
In my opinion within Australia they are headed down a risky path.. Regional routes and aircraft, extra this and extra that, the Lounge, Blah Blah..

why they have moved away from LCC astounds me, when QF are rapidly expanding JQ, dumping loss making routes to them as its more profitable...

I agee with Michael. Give them 12 or 18 months and things should start to turn around. All this major capital investment has certainly hit their earnings but this is to be expected.

They will come back, just look at what they are doing. A lot of people Hate QF and there just isn't any comparable competition.

Share Price finished the day at 0.870

:(:(:(:(

Down 21% in one day! I cleaned out all my DJ shares last week, ended up with about a 5% profit, which considering the share market at the moment is not too bad.

Might buy back in again now though