A pair of strong trousers for Walsh?Back to Forum
Anonymous25 Oct 2014
Some weekend fun.
As Virgin Atlantic celebrated its inaugural flight to Atlanta on their new 787-9 Dreamliner….
..the SRB WW spat resurfaced yesterday
Over 2 years ago Walsh bet a “knee in the groin” that Virgin Atlantic would disappear within 5 years following 49% buy-out by Delta.
SRB asserts Virgin Atlantic is a “better known and more respected” global brand.
What is your prediction of the outcome. Will it be….
a) Virgin Atlantic be a player for at least 2 more years and Willie needs to be testing strong trousers to protect his ???? or
b) Willie cut :-0 and run before it is decided.
c) SRB be on the receiving end with the demise of Virgin Atlantic.
a) b) or c)25 Oct 2014
My money is on Willie. SRB and his bunch have a poor record of profitable businesses other than where they have licensed the name. The licensed businesses such as Virgin Australia are stronger than the mother brand, one littered with failures (Virgin Coke/Brides/Cosmetics/Vodka) etc etc. the only surprise is Virgin Atlantic has lasted so long.
Rock on Willie.25 Oct 2014
Virgin Atlantic will survive for sure, as others have said it is one of the few parts of the Virgin empire that makes money and the brand outside of the UK is still strong.26 Oct 2014
CharlesP, sorry but it is losing money, around £50m last year and a loss of £150m the year before that. It went from a PLC to private company a few years ago to prevent too much enquiry in to the whole financial pryramid. Since inception it has had a few good years, but more bad ones.
When Delta bought 49% of the business for £250m a couple of years ago, that was the price of a couple of reasonably new A340,s.
Any volunteers to invest?26 Oct 2014
Before responding, can anyone remind me whether there are/what are the restrictions on an outright DL purchase of the majority 51% stake – over and above the bearded one’s agreeing the price? DL bought SQ’s stake. Are there any other minority shareholders or does the B.O. own the rest?
Personally, it wouldn’t trouble me at all to see either or both of them rolling around on the ground in a couple years clutching their groins.26 Oct 2014
‘MrMichael ‘ my understanding was that the airline made an operating profit but was servicing debts that led to the losses. Either way though I take your point and stand corrected. This means I’m not sure which if any companies that beirdy owns are profitable.26 Oct 2014
His licensing of the brand is profitable, things such as Virgin Mobile, Virgin Media, Virgin Bank and Virgin Australia. However he does not own other than a small token holding those businesses. I am guessing the branding income covers his losses at Virgin Atlantic and his other loss making ventures. Not heard much about his Virgin Galactic lately, that must have gobbled up some dollars.
Virgin on the ridiculous is what Mrs Michael says.26 Oct 2014
I think Virgin Atlantic as a brand will be around for many more years. I do think however that they will almost become a transatlantic only airline eventually, maybe with one or two other non US routes.
And I think they will be a Skyteam member within two years.26 Oct 2014