VA Weighs Sale After Receiving Interest
04-03-2016, 08:07 AM
#431
Gets Weekends Off
Joined APC: Dec 2015
Posts: 513
If you go back over the history of VX, you'll see that Branson and the VCs have a LOT of dead money in the VX project. A sales price of $2B is probably close to breakeven for them. And that's ignoring the time value of money.
I find it interesting that they're looking at selling now, when they've finally got some positive cash flow. I'm wondering if the costs of bringing in another ten aircraft in a declining RASM environment is creating negative cash flow.
I find it interesting that they're looking at selling now, when they've finally got some positive cash flow. I'm wondering if the costs of bringing in another ten aircraft in a declining RASM environment is creating negative cash flow.
04-03-2016, 11:29 AM
#432
Gets Weekends Off
Joined APC: Oct 2014
Position: FO
Posts: 435
So, DB tries to keep it positive, and you "agree" with him by poking another pilot group in the chest? I know B6 has some smack talkers, but if you agree with the man, try to live up to it.
04-03-2016, 02:35 PM
#435
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,665
04-03-2016, 02:42 PM
#436
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
04-03-2016, 02:45 PM
#437
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,665
Alaska Air Nears Virgin America Deal After Frenzied Bidding
Excerpts:
Alaska Air Group Inc. is expected to announce Monday that it won the auction for Virgin America Inc., besting rival JetBlue Airways Corp. in a frenzied bidding process that culminated in a cash price of about $2.5 billion, according to people familiar with the matter.
[...]
Bidding between Alaska Airlines’ parent and JetBlue was feverish, this person said, with the price continuing to rise. Alaska prevailed in part because of its clean balance sheet, which will allow it to more easily borrow funds for the acquisition, the person said.
A person familiar with the jousting said it was “a fierce back and forth between the two sides, with multiple bids for a number of days.” But ultimately, JetBlue “put the pencil down” because the price had gotten too high.
04-03-2016, 02:53 PM
#438
New Hire
Joined APC: Oct 2015
Posts: 7
Sounds like a cash buyout according to the WSJ. Alaska has a better balance sheet and can get better financing than we can.
Alaska Air Nears Virgin America Deal After Frenzied Bidding
Excerpts:
Alaska Air Group Inc. is expected to announce Monday that it won the auction for Virgin America Inc., besting rival JetBlue Airways Corp. in a frenzied bidding process that culminated in a cash price of about $2.5 billion, according to people familiar with the matter.
[...]
Bidding between Alaska Airlines’ parent and JetBlue was feverish, this person said, with the price continuing to rise. Alaska prevailed in part because of its clean balance sheet, which will allow it to more easily borrow funds for the acquisition, the person said.
A person familiar with the jousting said it was “a fierce back and forth between the two sides, with multiple bids for a number of days.” But ultimately, JetBlue “put the pencil down” because the price had gotten too high.
Alaska Air Nears Virgin America Deal After Frenzied Bidding
Excerpts:
Alaska Air Group Inc. is expected to announce Monday that it won the auction for Virgin America Inc., besting rival JetBlue Airways Corp. in a frenzied bidding process that culminated in a cash price of about $2.5 billion, according to people familiar with the matter.
[...]
Bidding between Alaska Airlines’ parent and JetBlue was feverish, this person said, with the price continuing to rise. Alaska prevailed in part because of its clean balance sheet, which will allow it to more easily borrow funds for the acquisition, the person said.
A person familiar with the jousting said it was “a fierce back and forth between the two sides, with multiple bids for a number of days.” But ultimately, JetBlue “put the pencil down” because the price had gotten too high.
04-03-2016, 03:08 PM
#439
Banned
Joined APC: Jan 2011
Posts: 1,122
04-03-2016, 03:09 PM
#440
Gets Weekends Off
Joined APC: Dec 2009
Position: 1Durrty5
Posts: 291
If that WSJ article is correct, I'm glad B6 management was able to walk away from the table.
This is good news for our negotiators. If management was willing to drop almost $2.5 billion on VX, they can surely afford the contract we deserve and enjoy the benefits of a happy and motivated pilot group. This event just reinforces the importance of negotiating a solid scope clause and merger language in the contract.
Coincidentally, I remember hearing if we were to ever buy widebodies, it would be a fleet of at least 15, costing roughly $2 billion.
Now, if this plays out the way it's looking and B6 doesn't buy VX, my one disappointment will be missing out on the linguistic gymnastics involved in explaining an acquisition after years of beating the organic growth drum. That was going to be a classic email.
This is good news for our negotiators. If management was willing to drop almost $2.5 billion on VX, they can surely afford the contract we deserve and enjoy the benefits of a happy and motivated pilot group. This event just reinforces the importance of negotiating a solid scope clause and merger language in the contract.
Coincidentally, I remember hearing if we were to ever buy widebodies, it would be a fleet of at least 15, costing roughly $2 billion.
Now, if this plays out the way it's looking and B6 doesn't buy VX, my one disappointment will be missing out on the linguistic gymnastics involved in explaining an acquisition after years of beating the organic growth drum. That was going to be a classic email.
Thread
Thread Starter
Forum
Replies
Last Post
FlyerJosh
Flight Schools and Training
2
11-01-2005 06:11 PM
