Wednesday was not a pretty day on the markets but VBA held up...

Wednesday was not a pretty day on the markets but VBA held up well, with a 0.5c drop.

VBA has been trading very tighly in the 43c to 48c band and is due for some serious movement (hopefully in the upward direction).

We should receive news on the following before Christmas:

* ACCC gives final approval for Ethiad alliance.
* US transport dept changes decison on Delta tie up. The support shown from the Aust govt should help.
* ACCC decision on Air NZ partnership. VBA management seems confident, and airport operators such as Canberra, Auckland and Wellington are now supporting the idea (previously against it).
* What compensation (if any) will be paid to VBA regarding the collapse of their booking system.

Looking into early 2011, VBA will be:

* Continuing to role out new lounges, attracting more business passangers who are less fare sensitive.
* Detailing their plans for expansion into Asia.
* Improving their loyalty program.

So, there is a lot of news to be released regarding VBA over the next 6 months and I think it will be more good news that bad news.

The high AUD is also keeping operating costs low, as fuel and airplane leases are paid in US dollars.

And the other good news...... VBA does not own any A-380's.