Print from Airliners.net discussion forum
http://www.airliners.net/aviation-forums/general_aviation/read.main/5720125/

Topic: Virgin Atlantic Will Not Join SkyTeam yet
Username: rwy04lga
Posted 2013-03-21 08:21:29 and read 9064 times.

Details here.... http://www.bloomberg.com/news/2013-0...nd-alone-with-no-skyteam-link.html

Topic: Virgin Atlantic Will Not Join SkyTeam yet
Username: STT757
Posted 2013-03-21 08:23:32 and read 9060 times.

The article just stated not right away:

Quote:
At some point down the road SkyTeam will come up, and I’m certain that over time it will be viewed favorably, but right now that’s not the priority,

Topic: Virgin Atlantic Will Not Join SkyTeam yet
Username: AeroWesty
Posted 2013-03-21 08:24:58 and read 9031 times.

I read that as "SkyTeam isn't a priority ahead of addressing Virgin's acute financial needs and getting the JV up and running." I'm positive SkyTeam is in VS' future, just not its immediate future.

Topic: Virgin Atlantic Will Not Join SkyTeam yet
Username: jetlanta
Posted 2013-03-21 08:25:04 and read 9031 times.

The subject is a little misleading. It should me something like: Virgin Atlantic Will Not Join SkyTeam...Yet.

From the article:

Quote:
“At some point down the road SkyTeam will come up, and I’m certain that over time it will be viewed favorably, but right now that’s not the priority,” Bastian said today. “Their main priority is addressing their financial needs in respect of the losses they’ve been posting and getting the JV up and running.”

Topic: Virgin Atlantic Will Not Join SkyTeam yet
Username: rwy04lga
Posted 2013-03-21 08:32:15 and read 8903 times.

Quoting jetlanta (Reply 3):
The subject is a little misleading. It should me something like: Virgin Atlantic Will Not Join SkyTeam...Yet

I started to write that but decided not to...sorry.   

Mods, please add 'Yet' to the end of the title.

Topic: Virgin Atlantic Will Not Join SkyTeam yet
Username: AeroWesty
Posted 2013-03-21 08:34:14 and read 8868 times.

Quoting rwy04lga (Reply 4):
Mods, please add 'Yet' to the end of the title.

You have to send them an e-mail or add a note to a Suggest Delete alert.

Topic: Virgin Atlantic Will Not Join SkyTeam yet
Username: FlyASAGuy2005
Posted 2013-03-21 09:23:30 and read 8442 times.

When this whole thing was started it was said from the beginning that the JV would start to pave a path for a possible alliance. I don't think that's changed. That could be several years away as ATI will take a while.

Topic: RE: Virgin Atlantic Will Not Join SkyTeam Yet
Username: anstar
Posted 2013-03-21 13:07:54 and read 7431 times.

I reckon once the JV is approved - the focus will then move to joining Skyteam and I reckon there will be an announcement by year end or within 12 months at the latest.

But for now, its getting domestic and the Delta deal up and running.

Topic: RE: Virgin Atlantic Will Not Join SkyTeam Yet
Username: virgincrew
Posted 2013-03-21 16:22:52 and read 6031 times.

Quoting anstar (Reply 7):
I reckon once the JV is approved - the focus will then move to joining Skyteam and I reckon there will be an announcement by year end or within 12 months at the latest.

But for now, its getting domestic and the Delta deal up and running

I agree..... there is sooo much going on at VS at the moment with the JV and the launch of 'Little Red', that I think they need to stage all these big moves.

I think we will hear something about Sky Team at the end of this year.

Topic: RE: Virgin Atlantic Will Not Join SkyTeam Yet
Username: 1400mph
Posted 2013-03-22 03:56:09 and read 3990 times.

They are sort of in it now aren't they ? ( DL )

(to all intents and purposes anyway)

Topic: RE: Virgin Atlantic Will Not Join SkyTeam Yet
Username: goomba
Posted 2013-03-22 07:28:19 and read 3214 times.

This needs to happen...VA cannot sustain themselves without joining the SkyTeam. They are bleeding money and the alliance with Delta (and thus SkyTeam) could really go a long way to assist here. Virgin offers a very wonderful product and experience and should exploit this further.

Put it this way...if I had a choice to fly from my hometown airport ATL to LHR on VS or DL (assuming VS serviced ATL - they currently do not) - I will choose DL today because I am Gold Medallion and get credit. If I could get the credit on VS as well - I would go out of my way to fly the VS route for the service offered alone.

I believe many others probably feel the same way.

Topic: RE: Virgin Atlantic Will Not Join SkyTeam Yet
Username: VV701
Posted 2013-03-23 09:38:17 and read 2502 times.

What has happened is that a leading member of the Star Alliance, SQ, will, subject to regulatory approval, sell its equity investment in VS to a leading member of Sky Team, DL. Richard Branson, through his family's ownership of Virgin Group, still controls VS through the Group's ownership of 51 per cent of VS's equity. So in reality little appears to have actually changed except what was previously a "Star Alliance" minority owner is now likely to become a "Sky Team" minority owner.

However the consensus view appears to be that it is only a matter of time before VS becomes a full Sky Team member. Is there any more reason that this should happen in the next few years when VS did not become a member of Star Alliance in the 12+ years that SQ owned the stake that DL now plans to buy?

Topic: RE: Virgin Atlantic Will Not Join SkyTeam Yet
Username: anstar
Posted 2013-03-23 09:47:01 and read 2474 times.

Quoting VV701 (Reply 11):
So in reality little appears to have actually changed except what was previously a "Star Alliance" minority owner is now likely to become a "Sky Team" minority owner.
Quoting VV701 (Reply 11):
Is there any more reason that this should happen in the next few years when VS did not become a member of Star Alliance in the 12+ years that SQ owned the stake that DL now plans to buy?

SQ bascialyl lost interest in VS after Sep 11 and the onslaught of the gulf carriers. They refocussed from LHR to Asia and protecting their Aus - EMEA transfer traffic.

DL ont he other hand are geographically better placed to work with VS and the fact they have stated they are going for a full JV from the get go speaks volumes on how close they are going to be working with each other.

That for me is enough to suggest Skyteam will eventually happen given you have a JV with the leading member of that alliance AND they own half of your company.

Topic: RE: Virgin Atlantic Will Not Join SkyTeam Yet
Username: QANTASvJet
Posted 2013-03-23 09:53:27 and read 2458 times.

Quoting VV701 (Reply 11):
However the consensus view appears to be that it is only a matter of time before VS becomes a full Sky Team member. Is there any more reason that this should happen in the next few years when VS did not become a member of Star Alliance in the 12+ years that SQ owned the stake that DL now plans to buy?

Plenty of reasons including a) Virgin have said they are looking to join an alliance b) they have also said that they will seek to join the Delta/AF-KLM JV which is another big break with the past c) while the standalone strategy may have been viable once it looks hugely unrealistic in today's world of alliances, JVs and mergers d) and this is speculative... it is highly unlikely that Delta would have bought their shares without a commitment from Virgin to make radical changes, of which joining Sky Team would almost certainly have been one.

Topic: RE: Virgin Atlantic Will Not Join SkyTeam Yet
Username: VV701
Posted 2013-03-23 12:15:25 and read 2274 times.

Quoting QANTASvJet (Reply 13):
Plenty of reasons including a) Virgin have said they are looking to join an alliance b) they have also said that they will seek to join the Delta/AF-KLM JV which is another big break with the past c) while the standalone strategy may have been viable once it looks hugely unrealistic in today's world of alliances, JVs and mergers d) and this is speculative... it is highly unlikely that Delta would have bought their shares without a commitment from Virgin to make radical changes, of which joining Sky Team would almost certainly have been one.

Thanks. I particularly agree that DL would not have bought the VS equity without some sort of assurance as to what VS would do.

However the reasons for buying the VS stake have always focussed on DL's need to increase its presence at LHR to meet its corporate customers' needs. So I am therefore wondering if joining Sky Team is a pre-requisite to achieving this ob jective. For example would it be possible for VS to seek to join the DL / AF-KLM JV without joining Sky Team. Or would joining Sky Team be a pre-requisite to joining the JV?

Topic: RE: Virgin Atlantic Will Not Join SkyTeam Yet
Username: QANTASvJet
Posted 2013-03-23 12:31:16 and read 2243 times.

Quoting VV701 (Reply 14):
However the reasons for buying the VS stake have always focussed on DL's need to increase its presence at LHR to meet its corporate customers' needs. So I am therefore wondering if joining Sky Team is a pre-requisite to achieving this ob jective. For example would it be possible for VS to seek to join the DL / AF-KLM JV without joining Sky Team. Or would joining Sky Team be a pre-requisite to joining the JV?

They could I daresay join the JV without joining Sky Team. The advantage to Delta of Virgin joining Skyteam is probably a different one and has to do with Virgin's flights from LHR to other destinations in Asia, Africa etc - it just helps to plump out Delta's overall global offer, building on their strong ties with AF-KLM (particularly KLM). So the JV and Skyteam membership are different but complementary to one another.


The messages in this discussion express the views of the author of the message, not necessarily the views of Airliners.net or any entity associated with Airliners.net.

Copyright © Lundgren Aerospace. All rights reserved.
http://www.airliners.net/