Originally Posted by
Sydneysider
VX is a privately held airline and not subject to the same public reporting requirements as a listed company.
And if they lost this argument, they still wouldn't. Spirit complies and they remain privately held. VX can rest in the fact that much is still not known about Spirit's financial performance because they are privately held.
Originally Posted by
nermaljcat
Maybe VX are afraid that their competitors will see how efficiently they are run (and try to follow suit)?
or, how long they can keep up the low fares before running out of cash...
Uhh, I would lean towards the "or". Any airline that is just starting out, especially in this environment is not going to show much in the way of effeciency given the huge start-up costs involved with starting an airline. If that said airline is forced to offer cut-throat fares for an extended period of time, particularly in a trans-con market, in order to gain a decent market share(which we can't even assume, given that the information is not available) then the issue becomes how long can they keep it up.
They seem to be burning through cash, seeking additional capital in order to grow their network, hoping that they will be able to get themselves established with a strong US brand and presence before the well dries up. Will they be able to make it on their own? That question is up in the air, but I wonder what that information would add to the discussion if it were in the public forum. I can completely understand why VX wouldn't want it out there, especially if the news isn't so good.
Originally Posted by
audio-nut
I don't think they will abandon transcon but I expect them to significantly reduce their exposure under the current fuel costs.
Yet they are still adding new trans-con services(JFK-LAS). Would they have been better off starting as B6 did with an emphasis on a particular coast of the US? Even though WN is
HUGE in the West, certainly the VX product is distinguishable and could probably find a loyal following in the big media-savvy West. Instead, they seem to want to go for everything all at the same time and are stretching themselves thin.
Originally Posted by
bearstew72
I think they are afraid of their completion factor (rumored at around 30-40%) What good does 80% load factors do is you only fly 1/3 of your scheduled flights?
However, not that thin. A monthly completion factor of 30-40% would, not uncoincedentally, also be the same month the airline ceased operations.
I similarly doubt the load factor information, even during the summer months, due to the fares that VX continues to offer for trans-con travel.