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US/HP Merger A Way In For VS?  
User currently offlineViscount630 From United Kingdom, joined Mar 2005, 235 posts, RR: 0
Posted (9 years 3 months 1 week 3 days ago) and read 2822 times:
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Ok ok ok - I fully expect to be thoroughly pounced on for even suggesting this.... BUT........ IF US and HP merge/takeover one or other, or whatever, its NOT going to be a cheap option, even if it, hopefully, saves one or both of them from closing down.

Virgin USA seems to be, at least, stalled right now, but Sir Richard B obviously wants to get into the US market somehow.

How practical would it be for what funds were going to be used to set up VS USA to be diverted into investing in the new combined carrier, to help provide a welcome injection of working capital, and pay off some of the incumbent debt? Foreign ownership regulations being what they are in the US, VS would not be able to be a majority share-holder, but big enough to justify operations under a Virgin USA banner for the combined operation? Even the US trans-Atlantic and Caribbean networks would be pretty complimentary to VS's and there would be some long-needed feeding onto a US domestic network via a number of common points.

A bit of the VS customer service motivation and/or philosophy (i.e HAVING ONE) injected into US/HP wouldn't go amiss either......

Ok - I'm taking cover. "Armchair experts", do your worst!  duck 


RIP Dan-Air. Where the Secret was SERVICE.
4 replies: All unread, jump to last
 
User currently offlineCommavia From United States of America, joined Apr 2005, 11522 posts, RR: 61
Reply 1, posted (9 years 3 months 1 week 3 days ago) and read 2809 times:

If VS knew what was best, they would stay as far away from any proposed HP-US merger as possible and avoid investing in it like the plague.

User currently offlineFlyboyaz From , joined Dec 1969, posts, RR:
Reply 2, posted (9 years 3 months 1 week 2 days 23 hours ago) and read 2776 times:

I've said the same thing in a few posts...it would be an excellent idea. It would be a marketing hit and would be much easier for VS to do this than start up from scratch. The Virgin name is very, very popular in the states and they certainly have plenty of capital to help the merged airlines. Plus the confusion of which name to take would be solved. It would be a fresh and trendy start.

User currently offlineDutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 57
Reply 3, posted (9 years 3 months 1 week 2 days 23 hours ago) and read 2771 times:

I dont think that Branson wanted to make an investment into a US carrier, he is looking for controlling interest which is the problem. He would have a minority interest in the newly merged airline (if it happens) and no effective control over his investment or the airline's operations - some of these issues could be solved by the lawyers, but owning a piece of US/HP is not what he has in mind.

Sir Richard is a smart man (even if I do find him a bit annoying) and is not going to invest into the HP/US combination - he has better things to do with his money.


User currently offlineFlyboyaz From , joined Dec 1969, posts, RR:
Reply 4, posted (9 years 3 months 1 week 2 days 23 hours ago) and read 2738 times:

That's one thing I was thinking is he would want his own ideas. While it might be easier to do, the 2 combined airlines aren't necessarily what he wants "his" airline to be. But it's a good idea anyhow...hehe.

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