V-Flyer

There is an inference in the report that it was VS that sold DL the 49% as though that put capital into VS when in reality it was SQ that sold its stake to DL.

£300 million to install wifi ??

A bit pricy if you ask me and it looks more like a Grauniad misprint to me.

But good they are back in profit evenif it has been a bit traumatic with route and service cuts.

.5% really isn't a large profit margin though is it?

No but it has profit rather than a loss so it's a positive step!!

I thought they were in profit last year, or was that just a half year report?

Smid wrote:I thought they were in profit last year, or was that just a half year report?

If I remember they did and they didn't depending on the accounting period used !
as last year VS changed their year end date so needed to produced 2 sets of accounts.

I wonder how much the big drop in fuel prices has impacted these results?

They've also started gouging people on seat selection costs (for Economy) - $50 roundtrip quickly adds up. Add to that buying some cheaper long-term fuel options, and you've got yourself a tiny profit.

Still not happy about the seat selection cost. That is not in keeping with the Virgin brand.

To put it in context, BA made a profit of £975 million in 2014.

LHRrules wrote:To put it in context, BA made a profit of £975 million in 2014.

What's that as a % of revenue?

No contest I'd say.

LHRrules wrote:No contest I'd say.

BA is much bigger than VS so you can't just compare the £ results otherwise it's apples and oranges.

To make a valid vomparison you need to use measures like load and yield factor % on comparable routes and as suggested profit as a % of revenue.

£975 million v £15 million. Is BA 65 times bigger?

Like it or not BA is a very profitable airline with an operating margin of over 10 percent last year.

My dad is bigger than your dad.

Is that BA's results or IAG's? Two national carriers?

It's the BA figure.

LHRrules wrote:It's the BA figure.

Can you post a link to their accounts / annual report please.

tontybear wrote:Can you post a link to their accounts / annual report please.

Certainly. See page 78.

http://phx.corporate-ir.net/External.Fi ... U9MQ==&t=1

I'm pretty sure this thread was about VS's profit for the year...

Economies of scale favor huge airlines... that's nothing new. Virgin invests a lot of money for very, very small routes - such as Newark (one flight a day). When I realized they maintained a clubhouse there, for one flight a day - I was amazed/perplexed. Sure, they let other airlines use it, but imagine if they had 5 flights a day?

I think that's why we're seeing a re-focusing on transatlantic routes. They can eliminate redundant/underutilized expensive costs, and focus them on key cities. Should be good for everyone (unless you don't live in the UK/USA).

I think both the VS001 and VS017 both fly to Newark

David wrote:I think both the VS001 and VS017 both fly to Newark

Delta took over the daytime flight. Virgin currently only has VS002, which leaves around 10PM. I'm flying on it in May - so not sure if the transition has occurred yet, but it is soon.