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Topic: Would/Should Delta Acquire Virgin America?
Username: jethawk
Posted 2013-02-19 16:22:15 and read 9023 times.

With DAL now in the right seat of Virgin Atlantic and its imminent addition to Sky Team; would one think DAL would be interested in acquiring the floundering Virgin America brand. This would eliminate some competition in SFO/LAX, and could possibly mean more slots at JFK. Additionally, DAL would acquire some 50+ A320 family aircraft with an avg. fleet age of ~5 years. Could these be the slightly used birds they are looking for? If the price was right I could see a win for DAL.

[Edited 2013-02-19 16:44:02]

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: AeroWesty
Posted 2013-02-19 16:27:48 and read 8990 times.

I think that jetBlue has a more complementary network, along with a similar fleet, which would make them the best merger choice for Virgin America, IF it came down to that. It would also give us a stronger fifth place carrier behind UA, AA, DL and WN. VX's First Class would go away in that scenario as B6 has no use for it.

IBTL!

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: srbmod
Posted 2013-02-19 16:28:21 and read 8975 times.

That's likely not going to happen. Just because DL is buying a 49% stake in VS doesn't mean any other Virgin branded airlines are on their radar. VX is owned by VAI Partners, who own 75% of the airline with the Virgin Group (Who owns the remaining 51% of VS) owns 25% of the airline due to US ownership laws. VX operates independently of the other Virgin-branded airlines but do have partnerships with some of them.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: point2point
Posted 2013-02-19 16:30:26 and read 8953 times.

Quoting jethawk (Thread starter):
would one think DAL would be interested in acquiring the floundering Virgin America brand.

The question becomes how much would it be worth to DL to be rid of this competitor? If VX is in dire straits (maybe some may say they are there now) and the price is bargain basement, then VX might be of interest to all domestic carriers.

However...... with VX in the state its in...... and shareholders of VX are unwilling to part with it at a loss, well.....it may be just a matter of time before DL or any other carrier can have what VX currently has (minus whatever marketing pizazz the VX may offer it pax) just with its own organic growth, and wait for VX to eventually falter, which pretty much may happen if positive $$$$ don't start happening soon......

 

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: luv2fly
Posted 2013-02-19 16:32:34 and read 8929 times.

Why buy something that is already on life support, just wait for nature to takes its course.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: DeltaMD90
Posted 2013-02-19 16:37:12 and read 8897 times.

Whoa whoa whoa...

Quoting jethawk (Thread starter):
With DAL now in the left seat of Virgin Atlantic

RIGHT seat, they may have 49% but SRB still has 51% (control/left seat)

Quoting jethawk (Thread starter):
its imminent addition to Sky Team

I'm pretty sure this isn't something DL just decided to somehow make VS do, I'd wager if DL had any brains this is something they would have negotiated before buying 49% of VS

Quoting jethawk (Thread starter):
would one think DAL would be interested in acquiring the floundering Virgin America brand.

Besides the name and branding, albeit big, VS and VX are completely different companies. I don't think DL is interested in a SFO hub if you'd call it that, and VX's business model is pretty different... I don't think it would work at all. Plus, the way VX is doing and the very limited potential they have (IMO) I'd steer clear of them if I were DL

Quoting jethawk (Thread starter):
Could these be the slightly used birds they are looking for?

No. DL is looking for slightly used planes no one wants. Who wants MD-90s or 717s? Basically no one. VX's A320s would quickly find a home.

Quoting jethawk (Thread starter):
If the price was right I could see a win for DAL.

Yes, but like I just said, I don't think the price would be right as many carriers would take these birds, increasing the price

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: jethawk
Posted 2013-02-19 16:45:02 and read 8825 times.

Quoting DeltaMD90 (Reply 5):
RIGHT seat, they may have 49% but SRB still has 51% (control/left seat)

Fixed that one for you, I was thinking right in my small little head

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: jethawk
Posted 2013-02-19 16:49:50 and read 8792 times.

Quoting DeltaMD90 (Reply 5):
I don't think DL is interested in a SFO hub if you'd call it that, and VX's business model is pretty different... I don't think it would work at all.

I'm talking acquire the assets, not the brand, culture, and routes.

I mean honestly, have you seen what they make their employees wear?

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: boeing773ER
Posted 2013-02-19 16:53:24 and read 8758 times.

Well doesnt DL indirectly own about 12.4% of VX already? Since they own 49% of Virgin Atlantic which owns 25% of VX?im not sure if my logic is right, but that's what my thought is.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: point2point
Posted 2013-02-19 16:56:59 and read 8727 times.

Quoting boeing773ER (Reply 8):
Well doesnt DL indirectly own about 12.4% of VX already? Since they own 49% of Virgin Atlantic which owns 25% of VX?im not sure if my logic is right, but that's what my thought is.

I think that in some way you may have some sort of point there......


 

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: Polot
Posted 2013-02-19 17:00:12 and read 8686 times.

Quoting boeing773ER (Reply 8):
Well doesnt DL indirectly own about 12.4% of VX already? Since they own 49% of Virgin Atlantic which owns 25% of VX?im not sure if my logic is right, but that's what my thought is.

VS has no ownership stake in VX. The Virgin Group has a 25% stake in VX, along with a 51% stake in VS. Delta has a 49% stake in Virgin Atlantic, not the Virgin Group.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: VS11
Posted 2013-02-19 18:00:29 and read 8435 times.

It may not be a totally dumb idea but only if they keep the airline and let it grow on its own. VX can be a successful reincarnation of the old DL's Song. This way, DL does not have to start e.g. BOS-LAX and DL could cut down on service in markets where VX is more likely to be preferred.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: tullamarine
Posted 2013-02-19 18:44:54 and read 8285 times.

DL also has a close alliance with VA though hasn't been able to get any equity so far as NZ, SQ and EY have each taken substantial holdings.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: toltommy
Posted 2013-02-19 18:47:34 and read 8276 times.

Quoting VS11 (Reply 11):
It may not be a totally dumb idea but only if they keep the airline and let it grow on its own.

One word. Scope. If Delta owns a majority of a carrier that flies aircraft seating more than 76, it must be flown by pilots on the Delta seniority list.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: SocalApproach
Posted 2013-02-19 19:12:24 and read 8114 times.

Since VX is its own company with no obligation to work with VS in any way, it means nothing that DL has a 49% stake in VS....VX could care less and they have their own airline to run. Therefore this thread is going no where. Everyone is so quick to count VX out for the count now when I honestly think they are in better position then they ever have been and are making some sound moves (and a few questionable ones) but overall they are not all SFO/LAX-Any destination. They are managing their fleet and where they are putting their planes in places that are alot more efficient now than ever even if that includes parking them! I may be biased because I just got an offer for them to work there but seriously nobody I talked to at VX seems to be worried at all. All the doomsday talking only happens here on a.net

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: XT6Wagon
Posted 2013-02-19 19:18:07 and read 8061 times.

Never. Virgin America has from all reports $1B or more in debt and far less than that in assets. They have posted no profit ever. They have no unique assets. They have no slots worth buying the airline for. They have no hard to get aircraft.

In short, waiting till they have an asset sale is the highest reward Delta or any other airline can see from Virgin America.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: VS11
Posted 2013-02-19 19:22:50 and read 8032 times.

Quoting toltommy (Reply 13):
One word. Scope. If Delta owns a majority of a carrier that flies aircraft seating more than 76, it must be flown by pilots on the Delta seniority list.

That's not a huge obstacle. So what if DL pilots fly the planes...the essence is that DL acquires a great product...as long as DL FAs are not forced onto VX...

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: catiii
Posted 2013-02-19 21:43:05 and read 7735 times.

Quoting VS11 (Reply 16):

Putting aside the fact that an acqusition of VX bynDL is never going to happen, there's a reason why Song doesn't exist anymore. The airline within an airline concept is a failure. Even if DL did acquire VX, VX as you know it would be eliminated.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: BigGSFO
Posted 2013-02-19 21:57:56 and read 7659 times.

If it's Monday, it must be a new "Will DL acquire XXX..."

There's no point. VX has no critical mass, no assets that DL could not get on their own. Even if they wanted, for example, a larger piece of the SFO market, they could start service tomorrow to wherever they wanted domestically (save a beyond perimeter DCA slot). And maybe they should- weather delays notwithstanding, SFO could probably sustain a second hub from someone who has a substantial transpacific footprint.

VX will either thrive (hopefully) or die on their own. DL doesn't need them if they wanted the buses or the marketshare.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: TWA772LR
Posted 2013-02-19 21:58:14 and read 7654 times.

Out of B6 and VX, I think a more plausible merger would be DL/VX. B6/DL would give DL a near monopoly in JFK and the antitrust laws and DOJ wouldn't let that fly (pun intended). VX would give DL a larger presence in LAX (where they have been growing pretty fast) and a nice presence in SFO to go against UA. VX Airbus fleet also has engine commonality with DL's CFM powered fleet.

But I don't see any mergers involving the "Big 3" for quite some time.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: strfyr51
Posted 2013-02-19 22:16:03 and read 7603 times.

Quoting VS11 (Reply 16):

If selta bought a majority of VX?? There would BE no VX !!

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: panamair
Posted 2013-02-20 01:18:15 and read 7308 times.

Quoting tullamarine (Reply 12):
DL also has a close alliance with VA though hasn't been able to get any equity so far

Uh, there hasn't been any indication that DL wants or has tried to get an equity stake in VA....

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: Deltal1011man
Posted 2013-02-20 02:01:08 and read 7251 times.

Quoting DeltaMD90 (Reply 5):

No. DL is looking for slightly used planes no one wants. Who wants MD-90s or 717s? Basically no one. VX's A320s would quickly find a home.

not true. Delta looks at lot of things. It just happens to be right now, M90/717 is the cheapest way to go. Once all the NEOs and MAXs start showing up don't be shocked to see DL go after NGs and OEOs.

Quoting jethawk (Thread starter):

Nah, just sit back and watch it die. No need to buy into something that performs so poorly.

Quoting SocalApproach (Reply 14):
All the doomsday talking only happens here on a.net

No it doesn't. For a company that has been around as long as VX that doesn't seem anywhere near to posting a profit plenty of people talking (laughing) about VX outside of anet

Quoting VS11 (Reply 16):
as long as DL FAs are not forced onto VX...

  wont happen. General hint for life. When you have a group that was a few thousand or less votes away from a Union....a good idea is to not outsource jobs like that......Unless you want them to vote in a union then force those jobs back to mainline with scope.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: jfklganyc
Posted 2013-02-20 05:16:29 and read 7032 times.

How big does DL need to get?

Adding these 50 airplanes, staff, and money BURNING routes...what good does it do Delta?

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: SocalApproach
Posted 2013-02-20 06:45:12 and read 6869 times.

Quoting Deltal1011man (Reply 22):
No it doesn't. For a company that has been around as long as VX that doesn't seem anywhere near to posting a profit plenty of people talking (laughing) about VX outside of anet

Who?? OAL employees?? Pilots and Inflight coming from regional's and the legacy's trying to improve their quality of life or just get off reserve are leaving for VX if they have the opportunity.

I guess this is something I have to get used to here at a.net. Unless you are a legacy or your name is DL/UA/WN you will always be associated with being bought out by someone no matter how good you are doing. Here were are in a thread that is speculating if VX will be bought out but AS is thriving and yet they get brought up multiple times a year about being bought out. Heck even as bad as a situation AA was in they never were mentioned as being "bought" out. They for some reason have the respect that they are talked about as "merging" with "X" airlines/airways....It doesn't matter if VX were to ever post a profit. They will always be in the neighborhood with B6/AS/G4 as being Bought out by the above 3 I mentioned...

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: Deltal1011man
Posted 2013-02-20 07:38:51 and read 6972 times.

Quoting SocalApproach (Reply 24):
Heck even as bad as a situation AA was in they never were mentioned as being "bought" out

You haven't been here long eh? outside of AA fanboys, most are calling it a US buy out.

Quoting SocalApproach (Reply 24):
It doesn't matter if VX were to ever post a profit. They will always be in the neighborhood with B6/AS/G4 as being Bought out by the above 3 I mentioned...

I think you are misunderstanding. Generally no one expect VX to be bought....fail? Oh yeah....I can't think of an airline with management that is stupid enough to buy VX.

Quoting SocalApproach (Reply 24):
Pilots and Inflight coming from regional's and the legacy's trying to improve their quality of life or just get off reserve are leaving for VX if they have the opportunity.

I'm going to call horse crap on this. I'm sure you have a fair share of RJ guys but I don't believe for a second that many are leaving airlines like B6/NK/F9 much less the DL/UA/WN hell even AA to come to the sinking ship that is VX.

Quoting SocalApproach (Reply 24):
Who??

Anyone who is smart enough to look at VX negative double digit margins and see how badly VX is burning money.

Quoting SocalApproach (Reply 24):
I guess this is something I have to get used to here at a.net. Unless you are a legacy or your name is DL/UA/WN you will always be associated with being bought out by someone no matter how good you are doing

Welcome to the airline industry.
Oh course, before the legacy carriers got to big they were also being talked about being bought. I remember growing up to Delta buying Northwest, Delta buying Continental, Continental buying Delta, Northwest buying Delta.... etc. etc. etc. (US buying Delta....smh)

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: MIflyer12
Posted 2013-02-20 07:40:40 and read 6931 times.

It's not clear that SFO is big (facilities and passenger counts) enough to support two major hub operations - it's a pretty short list of U.S. airports that do (note DFW could not, demonstrated by Delta's retreat). As for acquiring 50 aircraft, DL has shown pretty creative ways to do that on the cheap, with both the used MD-90s (from multiple operators) and 717 sublease. Delta is using LAX and SEA as TPAC mini-hubs and wouldn't need to compete (with itself, in part) with a 3rd.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: Deltal1011man
Posted 2013-02-20 07:45:56 and read 7025 times.

Quoting MIflyer12 (Reply 26):
(note DFW could not, demonstrated by Delta's retreat).

errr not completely true here. You happen to be forgetting another carrier that, while they don't have a hub at DFW they do have a hub in Dallas. (at DAL)

The SF bay area has pretty good coverage with UA at SFO and WN at OAK.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: VictorKilo
Posted 2013-02-20 07:53:27 and read 6966 times.

Quoting XT6Wagon (Reply 15):

In short, waiting till they have an asset sale is the highest reward Delta or any other airline can see from Virgin America.

I agree....and even then, I only see Delta as a bidder of last resort.

Delta's most recent additions of multiple narrowbody airplanes have all been situations where Delta has been either the only airline that can use the aircraft or uniquely able to use the aircraft. They were uniquely able to take advantage of the ETOPS rating of the ex-TW 757's. They were uniquely able to integrate MD90's from multiple airlines into a larger fleet. They are uniquely able to take on the entire fleet of an aircraft type - the majority of the world's fleet of the type - by taking on the ex-FL 717's. They were uniquely able to take advantage of 100 available delivery slots for 737 NG aircraft.

They could be uniquely able to take on the entire VX fleet if and when VX stops flying, true. But I think other airlines may jump on them. And I suspect that there may be better opportunities for DL to be the only possible bidder for aircraft.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: rwy04lga
Posted 2013-02-20 08:23:55 and read 6624 times.

Quoting DeltaMD90 (Reply 5):
Quoting jethawk (Thread starter):
With DAL now in the left seat of Virgin Atlantic

RIGHT seat, they may have 49% but SRB still has 51% (control/left seat)
Quoting jethawk (Reply 6):
Quoting DeltaMD90 (Reply 5):
RIGHT seat, they may have 49% but SRB still has 51% (control/left seat)

Fixed that one for you, I was thinking right in my small little head

No worries, most men DO think with 'that' head.

However, being British, and the fact that the steering wheel positions are opposite of the Yanks', perhaps he WOULD prefer the right seat!

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: goosebayguy
Posted 2013-02-20 08:24:47 and read 6614 times.

I think its a bit hasty to suggest VX is on life support. I seem to recall reading that losses were expected for several years as they build up the fleet.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: ezra
Posted 2013-02-20 08:34:52 and read 6503 times.

What about VX's gates at LAX? Could those be of any value to DL as they proceed with their buildup in Los Angeles?

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: Zkpilot
Posted 2013-02-20 09:03:04 and read 6217 times.

B6 and VX would go nicely together as others have mentioned.
AS is the airline that DL wants.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: PIEAvantiP180
Posted 2013-02-20 09:25:26 and read 6013 times.

Quoting ezra (Reply 31):

If they wanted to run a split operation they would do that but i don't think they do. T-5,6 that DL is in and T-3 where VX is at are on opposite sides on LAX terminal complex and that would complicate connections. If VX goes under then maybe they can pick up the tab that AS spent on upgrades in T-6 and send them back to T-3. Part of the reason why i believe DL want's AS is because of the gates they have in T-6.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: psa1011
Posted 2013-02-20 09:47:15 and read 5774 times.

BTW is UA still using gates in T6? Did they help at all with the cost of renovation?

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: Polot
Posted 2013-02-20 09:50:47 and read 5729 times.

Quoting goosebayguy (Reply 30):
I think its a bit hasty to suggest VX is on life support. I seem to recall reading that losses were expected for several years as they build up the fleet.

The problem is that it has already been several years (VX has been flying for over 5 years now!) and they are still not making money or showing signs that they are close to becoming profitable in the near term. VX has built up its fleet, and now it is curbing its expansion. Successful airlines continue to grow, they don't come to a standstill.

[Edited 2013-02-20 09:53:07]

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: SocalApproach
Posted 2013-02-20 10:03:35 and read 5601 times.

Quoting Deltal1011man (Reply 25):
Generally no one expect VX to be bought

Yet the threads keep coming....

Quoting Deltal1011man (Reply 25):
I'm going to call horse crap on this. I'm sure you have a fair share of RJ guys but I don't believe for a second that many are leaving airlines like B6/NK/F9 much less the DL/UA/WN hell even AA to come to the sinking ship that is VX.

I have seen it happen. Quality of Life plays a role greatly.

Quoting Deltal1011man (Reply 25):
Anyone who is smart enough to look at VX negative double digit margins and see how badly VX is burning money.

Ill continue to drink the VX kool aid...If that is going with my heart over my head then so be it. The eye test tells me this airline is in no worse dire situation than it was in the last VX thread. I want to see numbers at the conclusion of 2014. I feel year 7 or 8 is when the red flags need to start waving. A decade of no profit is proof enough for me but not now especially when all VX does is enter markets with plenty of service already.

Quoting goosebayguy (Reply 30):
I think its a bit hasty to suggest VX is on life support. I seem to recall reading that losses were expected for several years as they build up the fleet.

   and network which includes other airlines.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: luv2fly
Posted 2013-02-20 10:05:57 and read 5581 times.

Quoting goosebayguy (Reply 30):
I think its a bit hasty to suggest VX is on life support. I seem to recall reading that losses were expected for several years as they build up the fleet.

At some point the well is going to run dry, you can only make so many trips before that happens.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: SocalApproach
Posted 2013-02-20 10:12:11 and read 5523 times.

Quoting Polot (Reply 35):
Successful airlines continue to grow, they don't come to a standstill.

B6 came to a standstill at one point. Over growing will kill the airline. You cant just keep taking planes and opening new routes hiring etc with all the expenses that come along with that and expect everything to be ok, couple that with their business model of going into fortress hubs...Its compounding negative results to continue to grow. They are going to have losses with the places they fly to. Only when they offer travel to more places via themselves or codeshare will more guest leave the legacies. The product cant do it alone. Give VX DL's network and tell me which airline you or anyone else is going to fly.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: ezra
Posted 2013-02-20 10:13:30 and read 5521 times.

Quoting PIEAvantiP180 (Reply 33):
If they wanted to run a split operation they would do that but i don't think they do. T-5,6 that DL is in and T-3 where VX is at are on opposite sides on LAX terminal complex and that would complicate connections. If VX goes under then maybe they can pick up the tab that AS spent on upgrades in T-6 and send them back to T-3. Part of the reason why i believe DL want's AS is because of the gates they have in T-6.

Is there an airside connector between T2 and T3? Or could there be one? I wonder if DL would ever vacate T5 and relocate to T2 and T3, picking up more gates in the process than they have now?

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: cv880
Posted 2013-02-20 10:54:09 and read 5180 times.

Quoting Zkpilot (Reply 32):
B6 and VX would go nicely together as others have mentioned.
AS is the airline that DL wants.

DL needs neither VX or B6 except for airplanes. DL can fly anywhere it wants without either. The only reason that DL may get involved with VX would be if the Virgin Group Airlines were to all join Skyteam.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: DeltaMD90
Posted 2013-02-20 11:28:41 and read 4914 times.

Quoting Deltal1011man (Reply 22):
not true. Delta looks at lot of things. It just happens to be right now, M90/717 is the cheapest way to go. Once all the NEOs and MAXs start showing up don't be shocked to see DL go after NGs and OEOs.

By then don't you think NGs and OEOs would be in the same boat as MD-90s and 717s? I still don't think so, actually. I'm sure DL looks at everything and will purchase any aircraft for the right price. I don't see how an NG would be at the right price... it would still be in demand. The MD-90s and 717s are relatively new but not in demand at all, not at the levels NGs and OEOs would be

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: deltalaw
Posted 2013-02-20 11:31:22 and read 4919 times.

I am just not sure VA is the west coast competition that DL is really all that concerned with. AA, UA, and AS are all bigger fish to fry for DL continuing to struggle to make a true west coast footprint. Also, DL has seemed to have no troubling scooping up frames for additional/replacement capacity, can't imagine they need VA for that purpose either

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: XT6Wagon
Posted 2013-02-20 11:49:05 and read 4762 times.

Quoting VictorKilo (Reply 28):
I agree....and even then, I only see Delta as a bidder of last resort.

I only said the asset sale would be the highest reward, not that winning the asset sale would be. I just fail to see anything in their assets that would be worth buying at even market value. Even the planes are not that great of a buy as you can get new A32x frames without the potential landmines you might get with the used frames. Just imagine the nightmare of finding out your "new" planes have 0 documentation left.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: AeroWesty
Posted 2013-02-20 11:58:45 and read 4681 times.

Quoting deltalaw (Reply 42):
I am just not sure VA is the west coast competition that DL is really all that concerned with. AA, UA, and AS are all bigger fish to fry for DL continuing to struggle to make a true west coast footprint.

With it's well-established hub at SLC, I wonder what VX would add to DL's current priority, which is feeding their growing international presence at SEA and LAX.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: FlyASAGuy2005
Posted 2013-02-20 13:46:03 and read 3972 times.

Quoting jethawk (Thread starter):
could possibly mean more slots at JFK.

Delta has more slots at JFK than they know what to do with. Yes, even at peak times.

There's nothing at this point that VX can offer that Delta can't do by themselves organically.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: PIEAvantiP180
Posted 2013-02-20 15:44:22 and read 3325 times.

Quoting DeltaMD90 (Reply 41):

RA specifically said during the investor day that DL is looking at and will be specifically targeting NG's and OEO's. He mentioned that in the next 5 years they will be able to find great opportunity on used 10-12 year old aircraft coming off leases to supplement their MD-90, 717, and 739ER coming on property.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: indiansbucs
Posted 2013-02-20 15:45:21 and read 3324 times.

Quoting FlyASAGuy2005 (Reply 45):
Delta has more slots at JFK than they know what to do with. Yes, even at peak times.

I know what they are going to do with some of those... restart Latin American destinations from JFK as soon as JFK Terminal 4 works get finished. Finally, we will get our JFK flight, but with much better times now that LGA hub has taken some of the traffic, and the slots will become available for these flights.

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: lightsaber
Posted 2013-02-20 18:36:03 and read 2979 times.

I'm sorry, where is the ROI for DL to buy VX?

Quoting point2point (Reply 3):
and the price is bargain basement

Not after debt and obligations as noted:

Quoting VS11 (Reply 16):
.the essence is that DL acquires a great product

DL couldn't transition the product to their fleet. In general, the larger culture always devours the smaller.

Quoting PIEAvantiP180 (Reply 46):
He mentioned that in the next 5 years they will be able to find great opportunity on used 10-12 year old aircraft coming off leases to supplement their MD-90, 717, and 739ER coming on property.

That I 100% agree with. The next few years are a great time to pick up used aircraft. In particular 'off sizes' such as the A319/73G.

But buying VX? That is an incredibly expensive way to buy used A320s. Better just to buy NGs and OEOs as they become available (in quantity). Heck, the resale value of MD-80s is so low one could practically justify replacing them by sneezing!   With DL operating both types, they can be very opportunistic. To a point... Unless it was a bulk purchase, I do not see them buying V2500s.   

Lightsaber

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: Philly65
Posted 2013-02-20 18:52:31 and read 2940 times.

VX hires a retread from WS and AS to run planning. And what does VX decide to do? SFO-AUS/ANC and now UA and B6 are throwing additional capacity on those new routes. Good move. How much longer till this airline liquidates?

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: DeltaMD90
Posted 2013-02-20 19:36:05 and read 2865 times.

Quoting PIEAvantiP180 (Reply 46):
RA specifically said during the investor day that DL is looking at and will be specifically targeting NG's and OEO's. He mentioned that in the next 5 years they will be able to find great opportunity on used 10-12 year old aircraft coming off leases to supplement their MD-90, 717, and 739ER coming on property.

Well I guess I'm wrong... sorry Deltal1011man

Topic: RE: Would/Should Delta Acquire Virgin America?
Username: ArmchairCEO
Posted 2013-02-21 11:07:12 and read 2517 times.

Quoting ezra (Reply 39):

A post-security air-side connector between SFO T1 (DL's current location) and T2 (VX's current location) is being constructed simultaneously with the new SFO ATC Tower. Construction is well underway!


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