Originally Posted by
Roger
I'm with Balance on this one. Even if VAH can execute a capital raise of circa $A1b they are still trading on a 2:1 debt equity basis, paying huge royalties for the use for the Virgin name and burdened with a very high ratio of leased planes v one's owned. Add in a aging CEO who seems to have fiddled while Rome burned and provincial routes in Australia that have been savaged by the effects of the widespread mining collapse, international routes that are still losing money despite the low oil price and I think AIR and bang on the money to extricate themselves from that flea ridden pup.
On the other hand AIR are trading on a 1:1 debt equity basis which is very conservative for this capital intensive industry and trading very profitability. Exec summary, AIR are in a vastly stronger than VAH even after the latter has been recapitalised. (Contains colourful language to describe the real state of VAH's operation DYOR e.t.c.).