VX posts $76 million 1Q loss
 

Loss is up from a $45mm loss 1Q2011. Still expects to be profitable for the year, as a whole.

That's terrible! That not good! They have save the money and try to save the labor cost. I wasn't wonder why they losing the money for everyday.

Where is this money coming from that gets thrown into this black hole?

Well, it never has had a profitable year, so I wouldn't hold my breath on this one. Several questionable business decisions and strategies don't help either.

Richard Branson and his American Citizen "friends." ;)

Seriously, though, VX borrowed about $150 million last year that will help see it thru a few more dismal quarters. Keep in mind that not every dollar "lost" represented a dollar of cash out the door - some of the loss consisted of non-cash accounting items like depreciation/amortization (where the cash went out the door long ago and is now being accounted for slowly, year by year).

I just don't see who would continue to lend money to this airline. While it may, some day, in the far off future see record profits- there's bound to be a million better investments.

Hell, a bank account with 2% interest is looking a little bit better.

The bank will rising 5% interest. This way they need to save the money. Don't try to lose the money anymore.

Approaching 600m in losses. :td: Full year profit? How many times have I heard that before....

And that is where there problem lies. They need to stop expanding, defer aircraft, increase utilization of the current fleet which in my opinion has alot of downtime. Adding 13 aircraft in a quarter is just suicide considering the current state of the business.

Then Expand the business when its profitable. Or, keep aircraft coming, just not at the current rates. Look at how LCCs have transformed the Asian region. They started off with small fleets, gradually adding aircraft/capacity as they made profit, and now dominate the region. When the business is stable, then order your mammoth aircraft orders.

They are clearly growing too fast, they are out of their depth.

...but their new delivery will include the A320NEOs which could be both favorable in cost and publicity for them. Just about anything at this point could pull them through.

The new delivery next year will be just normal 320s - the 320NEO won't be until 2016.
The probably did get a good deal on these aircraft, but it will be many more years until they gain from the increased efficiency. And publicity is nice, but that still doesn't solve anything regarding making money.

Re:
 

Interest rate of less than 5% have no benefit I think,