Virgin Blue paying cash for their fuel? - The Australian Frequent Flyer Online Community

flying1977 · 26th March 2009, 08:50 AM

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 · 26th March 2009, 09:58 AM

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 · 26th March 2009, 10:58 AM

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 · 26th March 2009, 11:15 AM

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

Mr!

MrGreg · 26th March 2009, 11:19 AM

Quote:

Originally Posted by simongr

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 · 26th March 2009, 11:22 AM

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

markis10 · 26th March 2009, 12:03 PM

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 · 26th March 2009, 03:16 PM

yep, it could be tue....

simongr · 26th March 2009, 03:30 PM

Bit of time on your hands MrP?

munitalP · 26th March 2009, 03:34 PM

End of month...

Spreadsheets, accounting package and boredom...

and Sir Richard looks so genuine as well eh?

Mr!

26th March 2009, 08:50 AM	#1 (permalink)
flying1977 Junior Member Join Date: Jul 2007 Location: Tamworth Posts: 44	Virgin Blue paying cash for their fuel? 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?

26th March 2009, 09:58 AM	#2 (permalink)
ANstar Member Join Date: Sep 2006 Location: Sydney Member of: QF Gold, Velocity Red, SPG Gold, IC Plat Posts: 630	Re: Virgin Blue paying cash for their fuel? 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. Last edited by ANstar; 26th March 2009 at 10:05 AM.

26th March 2009, 10:58 AM	#3 (permalink)
simongr Senior Member Join Date: Jul 2006 Member of: QF WP, AA EXP Posts: 7,426	Re: Virgin Blue paying cash for their fuel? 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? __________________ Rock On Corporate Corporate Account managers

26th March 2009, 11:15 AM	#4 (permalink)
munitalP Established Member Join Date: Oct 2006 Location: Melbourne Member of: WP+PG, QF-LTS DJ-S Posts: 1,450	Re: Virgin Blue paying cash for their fuel? Airside fuel bowsers - "please pay at the conter before filling up your 737 thank you" Mr! __________________ Get your AFF luggage tags here

26th March 2009, 11:22 AM	#6 (permalink)
simongr Senior Member Join Date: Jul 2006 Member of: QF WP, AA EXP Posts: 7,426	Re: Virgin Blue paying cash for their fuel? And how much fuel would use transporting the day's cash for 4-8 flights... I smell something a little fishy... __________________ Rock On Corporate Corporate Account managers

26th March 2009, 12:03 PM	#7 (permalink)
markis10 Established Member Join Date: Nov 2004 Location: Brisbane Member of: Hertz Presidents Circle, PC PLat Royal Amb, QF SG. Posts: 1,804	Re: Virgin Blue paying cash for their fuel? 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.

26th March 2009, 03:16 PM	#8 (permalink)
munitalP Established Member Join Date: Oct 2006 Location: Melbourne Member of: WP+PG, QF-LTS DJ-S Posts: 1,450	It could be true!! yep, it could be tue.... __________________ Get your AFF luggage tags here

26th March 2009, 03:30 PM	#9 (permalink)
simongr Senior Member Join Date: Jul 2006 Member of: QF WP, AA EXP Posts: 7,426	Re: Virgin Blue paying cash for their fuel? Bit of time on your hands MrP? __________________ Rock On Corporate Corporate Account managers

26th March 2009, 03:34 PM	#10 (permalink)
munitalP Established Member Join Date: Oct 2006 Location: Melbourne Member of: WP+PG, QF-LTS DJ-S Posts: 1,450	Re: Virgin Blue paying cash for their fuel? End of month... Spreadsheets, accounting package and boredom... and Sir Richard looks so genuine as well eh? Mr! __________________ Get your AFF luggage tags here

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