vba, page-2

Hi gbees

You are definitely on the right track. Did you see the article on page 2 of Friday's FR. The opening paragraph "The price of domestic business class air fares has surged this month as the recovering local economy boosts corporate travel and airlines restore profit margin after a horror 12 months".It also points out that the most heavily discounted air fares rose by 12%. This is great news for virgin and their margins. Another interesting comment was that "globally 2009 was the worst year for aviation sector since the end of WW2". Its all blue sky from here.

The other good news was that unemployment fell (the economists just can't get it right) and the dollar rallied on the back of expected rate rises and we know what positive impact this has on VBA earnings. Also, it would seem the greeks have been bailed out and China issued some pretty positive numbers/stats during the week. I have no doubt that VBA's FY profit will be at the upper end and probably exceed their guideance.

VBA was well supported last week. I don't know whether anybody noticed large sell orders on Wednesday drove VBA down to 54c. However, buyers bounced back and VBA finished at 58c.