jbs2886 wrote:Channex757 wrote:qf789 wrote:Of the aircraft owned are 4 x 77W's, 2 x 73G's and just over half of the 738's the rest of the fleet is leased
VARA fleet includes both A320's leased and 2 F100's leased the rest are owned
That's a fairly typical balance. I assume from that their debt levels are for instruments related to fleet purchasing and other capital spends.
Everyone is concentrating on the bottom line. To me it looks like a tax-efficient statement. Their 'profit' is going into paying down debt levels, which makes them more financially stable. If they have owners who can accept this policy then great. Tesla is the same; they have a decent margin but all their operating profits on Model S and Model X is going into capital spending. If they suddenly stopped this then they would be a profitable auto maker with over 20% margin per vehicle.
VA have declared a small operating profit. That to me points to tax-efficiency and not a failing operation. The money is just going elsewhere and the proof of it is a fleet with the ownership you indicate. If they were on their arse everything would be sold and leased back!
this is what everyone missed. There is operating positive cash flow. No, the airline isn't doing great, and has a lot of recovery still ahead...but its not doomsday as most posting above would have everyone believe reading this thread.
Let's be fair, VA issued an additional $931M in shares, nearly a $800M increase on the prior year. All the money they raised went straight to debt repayments. This is not sustainable.