Virgin Blue paying cash for their fuel?

[flying1977]

A friend of mine who works at Brisbane airport advised that Virgin Blue are having to pay cash by fuel. This is not good news if they are.

Can anyone confirm?

[ANstar]

I seriously doubt it.

They had $550M in the bank when they reported a month ago. I can't see how that could disappear overnight.

Seems more like someone scaremongering or telling porkies! Does your friend happen to work at Qantas lol! I only ask as all your posts are Anti Virgin and pro QF!

also, only 2 weeks ago they were asked by the ASX if there was anything that could be affecting hteir share price and Virgin's reply was that their full year guidance is still within 15% of what they gave last November....

http://asx.com.au/asxpdf/20090313/pd...mhr2rkhs64.pdf

And I'm usre they wouldn't be lying to the ASX.

[simongr]

The fact that they are forecasting a stable profit does not mean that they have any cash - they may have balloon payments due on leases, debt facilities could have been renegotiated downwards and a host of other things.

However I think the story of paying cash for fuel is a fabrication. The only circumstances I can see this happening is where DJ have a disagreement with the fuel provider and have stopped paying bills thus requiring cash payment - however that is still highly unlikely... how much is a tank of gas on a 737?

[munitalP]

Airside fuel bowsers - "please pay at the conter before filling up your 737 thank you"





Mr!

[MrGreg]

how much is a tank of gas on a 737?

If my calculations are correct, the cost to fill a boeing 737-800 from empty would cost roughly $19,000 based on jet fuel prices from early march.

[simongr]

And how much fuel would use transporting the day's cash for 4-8 flights... I smell something a little fishy...

[markis10]

I think QF would be paying cash for fuel before DJ, the bigger you are the more you find it harder to trim costs, Virgins source of aircraft financing has not gone into liquidation like Qantas's main one has, and I have not seen any cash changing hands with the refuellers on the apron this morning in melbourne.

[munitalP]

yep, it could be tue....

[simongr]

Bit of time on your hands MrP?

[munitalP]

End of month...

Spreadsheets, accounting package and boredom...

and Sir Richard looks so genuine as well eh?




Mr!