Monday, April 14, 2008

Virgin Blue - Premium economy has not been enough to save the share price

Bad day in the office in Fortitude Valley for Australia's number two carrier - Virgin Blue. Despite efforts to reinvent the brand with premium economy, lounges and more the share price for DJ (their airline code) is at its lowest level ever at 87 cents on the back of dropping profits (SMH story here). To put this in perspective, DJ floated at $2.25 in December 2003 to a valuation of A$2.3billion. In early 07 it reached a high near the $2.80 mark.

If the comments from the DJ management are right, this is not all their fault. Rather (they argue) the sector (ie domestic travel) is softening on the back of global and local economic concerns. Either way am sure it was not pleasant day in Queensland.


Lyall said...

My image is copyright and I would appreciate it if you had asked permission to use it first.

Please place a caption below the image with attribution to me. Also please change the image so that it links to the Flickr image page when a reader clicks on the image []. Directly linking to the Flickr image page from the photograph is a requirement of the Flickr terms of use.

Thanks in advance for making these minor changes.

- Lyall aka Admiral T

Tim Hughes said...


Apologies - should have asked first. This post was one of my first using Flickr photos. I have now removed the photo.