VAH 2014 results announcement

[smit0847]

$355m statutory loss

Highlights:
- Game Change strategy now complete. Next strategy is to grow loyalty.
- 4.5m VFF members - aim to grow to 7m in 5 years.
- Selling off 35% of VFF to raise $350m
- 25% of business is Corporate and Government (above goal of 20%)
- J to be introduced trans-tasman and to Fiji
- 'in the next few weeks, we will make a major announcement on our premium product offering' - I'm guessing new 77W J seat?

 

[TomVexille]

Interesting about J coming in Trans-Tasman.

Was there a timeframe on that?

 

[ABC1]

And he's sold part of the FF program which will bring $336 million cash.. Selling the farm to keep the house.. I can't see AIR NZ or SQ dipping in to bring in more cash.

 

[clarkkent]

And selling a 35% stake in Velocity.

 

[jackthomas]

Selling off of 35% of Velocity..

 

[Denali]

- 'in the next few weeks, we will make a major announcement on our premium product offering' - I'm guessing new 77W J seat?

Hopefully. The current seats are embarrassing in comparison to other airlines.

 

[smit0847]

Hopefully. The current seats are embarrassing in comparison to other airlines.

Worse than the QF MK1?!

 

[Kefci2000]

Good strategy.

Beef up trans Tasman to compete with your part owner and code share operator!

 

[TomVexille]

Worse than the QF MK1?!

Or EK, AF, LH (non 748), and numerous others?

 

[mannej]

The selling off of a stake in Velocity slipped under the radar.

 

[cmon0005]

I think part selling their FF business is a stupid idea, not only for the long term for the company and but also for the FF's who will no doubt see benefits/awards reduced. Maybe they were banking on QF selling part of theirs as well so thought they would do so as well?

Other than a short-term cash hit, I can't see any long term benefit from this sale.

 

[TomVexille]

The selling off of a stake in Velocity slipped under the radar.

I reckon they could have announced anything after QF's announcement and it would have slipped under the radar.

 

[smit0847]

I think part selling their FF business is a stupid idea, not only for the long term for the company and but also for the FF's who will no doubt see benefits/awards reduced. Maybe they were banking on QF selling part of theirs as well so thought they would do so as well?

Other than a short-term cash hit, I can't see any long term benefit from this sale.

I completely agree.

 

[Comoman]

I reckon they could have announced anything after QF's announcement and it would have slipped under the radar.

Mainstream press have picked it up now:

Virgin Australia reports $211.7m loss, sells stake in frequent flyer program

 

[amaroo]

I think part selling their FF business is a stupid idea, not only for the long term for the company and but also for the FF's who will no doubt see benefits/awards reduced. Maybe they were banking on QF selling part of theirs as well so thought they would do so as well?

Other than a short-term cash hit, I can't see any long term benefit from this sale.

Maybe they had to raise cash quickly to appease the three foreign cash cows.

 

[MarcB]

Will Nick Xenophobe be calling for ASIC to investigate VAH's failure to inform the market of the Velocity transaction? Or is it just QF who need to worry about listing requirements?

 

[TomVexille]

Mainstream press have picked it up now:

Virgin Australia reports $211.7m loss, sells stake in frequent flyer program

Yeah, already read that article on the Age website. Will wait and see how much fuss gets kicked up or if that's it.

 

[docjames]

Buried in there also is a loss of ~40m on their Tiger stake......

 

[Saab34]

Buried in there also is a loss of ~40m on their Tiger stake......

He was very confident, almost promising a Tiger profit in FY17.

Looking forward to the expected cabin refresh announcement in 3 weeks which he quoted in the conference. He did say it will "raise the bar" above a 100% offering, across domestic and International.

 

[dajop]

Good strategy.

Beef up trans Tasman to compete with your part owner and code share operator!

Well maybe it was decided in consultation with that operator, who only have business class on certain widebody flights each day to/from AKL, with most flights on A320s without a business class cabin .... It may actually complement rather than compete with them.