Virgin Blue delivers a shocker

New Virgin Blue CEO, John Borghetti (formerly from Qantas), took over on May 8th. Soon after, he confirmed profit guidance. 3 weeks later, ie YESTERDAY, he issues a shock downgrade of 75%. What happened in these 3 weeks to warrant this drastic change of direction??

Unsurprisingly, shareholders weren't happy. Shares dropped as much as 29% over the course of yesterday.

Even more concerning, is whether this shock downgrade is a more accurate reflection of the state of the economy, crunch time for the notoriously competitive airline industry (though less so in Australia), or clumsy management maneouvers?

More details about yesterdays shock here.

HC


http://whatsupjono.blogspot.com
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1 comment:

  1. Sustainability NutMay 29, 2010 at 10:56 AM

    HC. Obviously John Borgetti still has some QANTAS options that he needs to get rid of! hehehe.

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