Many thanks to TheCrankyFlier for his insightful post on Virgin America's newly-released financial information. The deeply-entrenched financial analyst in me loves a good set of finances to pore over, particularly when it comes with spreadsheet attached!
Despite a deep respect for Sir Richard Branson (and Virgin's extremely spiffy club areas) I have to agree that things look grim. Essentially, VA's strategy is to cushion itself on some extra capital and hope that consumer confidence remains high enough so that money keeps pouring in to keep it afloat.
Treading water--in my opinion--is never an ideal strategy. Just make sure that if you guys want to take a flight on Virgin America make it sooner rather than later.
And for those masochists that want to look at the excruciating cash burn (from bNet; cash levels in thousands):
-------------------------
Q3 2007: $104,166
Q4 2007: $69,311
Q1 2008: $30,272
Q2 2008: $11,068
Q3 2008: $25,382
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Despite a deep respect for Sir Richard Branson (and Virgin's extremely spiffy club areas) I have to agree that things look grim. Essentially, VA's strategy is to cushion itself on some extra capital and hope that consumer confidence remains high enough so that money keeps pouring in to keep it afloat.
Treading water--in my opinion--is never an ideal strategy. Just make sure that if you guys want to take a flight on Virgin America make it sooner rather than later.
And for those masochists that want to look at the excruciating cash burn (from bNet; cash levels in thousands):
-------------------------
Q3 2007: $104,166
Q4 2007: $69,311
Q1 2008: $30,272
Q2 2008: $11,068
Q3 2008: $25,382
-------------------------
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1 comment:
Ffff, how will I get to space now?
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