Virgin Australia Holdings Limited (VAH), more commonly known as Virgin Australia, is a Public Company listed on the Australian Stock Exchange (ASX) (IBIS World , 2015). Part of the aviation industry, this airline provides both affordable domestic and accessible international air travel services to corporate and leisure passengers alike (Virgin Australia Group, 2016). VAH was originally founded in 2000 as Virgin Blue Airlines and has now grown to be Australia’s second largest airline, ranked seventy –nine out of the top two thousand companies in Australia (IBIS World , 2015). Since its restructure in 2011, VAH has also come to operate one hundred and thirty aircrafts and two subsidiary companies; lost cost carrier Tiger Air Australia and Virgin Australia Regional Airlines. As at May
…show more content…
The 2015 financial year delivered a statutory net loss after tax of $93.8 million for VAH, a significant improvement from the 2014 financial year’s net loss of $355.6 million. This progression is believed to have been driven by a substantial performance in revenue growth and a disciplined execution of the group’s cost reduction program, including the full acquisition of Tiger Air Australia, enabling the further development of economies of scale for both carriers (Virgin Australia Group, 2015). This in contrast to VAH’s major competitor, Qantas, who since its foundation in 1920, has grown to be Australia’s largest airline, employing over thirty thousand people (ninety-three percent of whom are based within Australia), servicing forty-one international and domestic destinations (with a sixty- five percent domestic market share), and turning over a statutory net profit after tax of $560 million in the 2015 financial year (Qantas ,
The 2015 financial year delivered a statutory net loss after tax of $93.8 million for VAH, a significant improvement from the 2014 financial year’s net loss of $355.6 million. This progression is believed to have been driven by a substantial performance in revenue growth and a disciplined execution of the group’s cost reduction program, including the full acquisition of Tiger Air Australia, enabling the further development of economies of scale for both carriers (Virgin Australia Group, 2015). This in contrast to VAH’s major competitor, Qantas, who since its foundation in 1920, has grown to be Australia’s largest airline, employing over thirty thousand people (ninety-three percent of whom are based within Australia), servicing forty-one international and domestic destinations (with a sixty- five percent domestic market share), and turning over a statutory net profit after tax of $560 million in the 2015 financial year (Qantas ,