Remember how Richard Brandon tore up a make-up cheque from Air NZ to buy Virgin to access the Oz domestic market when Ansett got into trouble?
Now Oz will have just the one airline. Air fares sure will be going up!
IIRC Virgin pays some sort of royalty off the top as a percentage of sales to Richard Branson for the use of the Virgin name. This could possibly be one of the reasons the company always struggled to make a profit even in the good times.
I am sure that in due course out of the ashes of Virgin will emerge a low cost carrier with no aforementioned royalty, only required aircraft brought at fire sale prices and crew prepared to work for far more reasonable wages.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
When you're in love with a stock it's easy to spin any news the way you want to. No doubt in their eyes the collapse of Virgin means less competition and the decrease in fuel costs means costs are cheaper. I don't think they're considering the full implications of either.
Wonder if it sends people running or buying AIR today
Hope my Aussie mates who were banking all their velocity points cashed them out recently ... somehow I suspect not.
I was reading the AusFinance section of Reddit last night and amazing how many people talk about 'saving their points for retirement' etc. Surely they can't be serious?
I should have kept my kids sport McDonalds vouchers as a nest egg!!!
Funny name for a company that's completely rooted.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Funny name for a company that's completely rooted.
The irony of the name and the situation, I don’t think they were being that conservative after all.
Originally Posted by samjaynz
Hope my Aussie mates who were banking all their velocity points cashed them out recently ... somehow I suspect not.
I was reading the AusFinance section of Reddit last night and amazing how many people talk about 'saving their points for retirement' etc. Surely they can't be serious?
I should have kept my kids sport McDonalds vouchers as a nest egg!!!
There may be life for the points after, if someone takes it over, but either way any inflationary advice would be to spend anything that doesn’t keep up with inflation.
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Originally Posted by Balance
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