John Borghetti, Virgin Blue Holdings Ltd Chief Executive, has refuted the fact that the airline's two latest profit downgrades were done to “clear the decks” soon after his appointment. He shared it with the stockbrokers at a conference in Melbourne on Tuesday that nothing could be further from the truth.

He added that he would transform the budget airline over the next 12 months. He has planned to expand and will try to attract the business sector, as well. The two downgrades to guidance in May were a consequence of an incredible decline in the revenue line, that airline had witnessed over recent weeks.

The net profit before tax and exceptional items for 2009/10 was between $20 million and $40 million, revealed the Company. John Borghetti said, “Financially we are a very strong Company. We have $800 million in cash and no
(bank) covenants”.

Virgin does not intend to walk away from the leisure market, which at present drives 80% of Virgin's business. He shared that there are no intentions of the Company to hand over the key strategic routes to their opponents.

He said, “In 12 months we will have a much stronger, much more resilient and diversified airline”.