jethawk From United States of America, joined Feb 2013, 21 posts, RR: 0 Posted (2 months 4 weeks 22 hours ago) and read 7537 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.
AeroWesty From United States of America, joined Oct 2004, 18815 posts, RR: 64 Reply 1, posted (2 months 4 weeks 21 hours ago) and read 7503 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.
srbmod From United States of America, joined Mar 2001, 16888 posts, RR: 51 Reply 2, posted (2 months 4 weeks 21 hours ago) and read 7489 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.
point2point From United States of America, joined Mar 2010, 1959 posts, RR: 1 Reply 3, posted (2 months 4 weeks 21 hours ago) and read 7467 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......
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.
jethawk From United States of America, joined Feb 2013, 21 posts, RR: 0 Reply 7, posted (2 months 4 weeks 21 hours ago) and read 7305 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?
boeing773ER From United States of America, joined Dec 2011, 320 posts, RR: 0 Reply 8, posted (2 months 4 weeks 21 hours ago) and read 7272 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.
point2point From United States of America, joined Mar 2010, 1959 posts, RR: 1 Reply 9, posted (2 months 4 weeks 21 hours ago) and read 7241 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......
Polot From United States of America, joined Jul 2011, 1496 posts, RR: 0 Reply 10, posted (2 months 4 weeks 21 hours ago) and read 7200 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.
VS11 From United States of America, joined Jul 2001, 978 posts, RR: 0 Reply 11, posted (2 months 4 weeks 20 hours ago) and read 6949 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.
toltommy From United States of America, joined Dec 2003, 3220 posts, RR: 4 Reply 13, posted (2 months 4 weeks 19 hours ago) and read 6790 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.
SocalApproach From United States of America, joined Feb 2013, 52 posts, RR: 0 Reply 14, posted (2 months 4 weeks 19 hours ago) and read 6628 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
XT6Wagon From United States of America, joined Feb 2007, 3129 posts, RR: 4 Reply 15, posted (2 months 4 weeks 19 hours ago) and read 6575 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.
VS11 From United States of America, joined Jul 2001, 978 posts, RR: 0 Reply 16, posted (2 months 4 weeks 19 hours ago) and read 6545 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...
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.
BigGSFO From United States of America, joined Jun 2005, 2755 posts, RR: 7 Reply 18, posted (2 months 4 weeks 16 hours ago) and read 6173 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.
TWA772LR From United States of America, joined Nov 2011, 753 posts, RR: 1 Reply 19, posted (2 months 4 weeks 16 hours ago) and read 6168 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.
There's nothing like the smell of Jet-A in the morning. It smells like... VICTORY!!!
Deltal1011man From United States of America, joined Sep 2005, 8577 posts, RR: 8 Reply 22, posted (2 months 4 weeks 12 hours ago) and read 5765 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.
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.
"Oh look at the sUGAr falling out of the sky! Look at the sUGAr falling out of the sky!" LM 1922-2011 Go Dawgs! G.A.T.A.
SocalApproach From United States of America, joined Feb 2013, 52 posts, RR: 0 Reply 24, posted (2 months 4 weeks 7 hours ago) and read 5383 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...
Deltal1011man From United States of America, joined Sep 2005, 8577 posts, RR: 8 Reply 25, posted (2 months 4 weeks 6 hours ago) and read 5482 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.
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)
"Oh look at the sUGAr falling out of the sky! Look at the sUGAr falling out of the sky!" LM 1922-2011 Go Dawgs! G.A.T.A.
MIflyer12 From United States of America, joined Feb 2013, 132 posts, RR: 0 Reply 26, posted (2 months 4 weeks 6 hours ago) and read 5443 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.
Deltal1011man From United States of America, joined Sep 2005, 8577 posts, RR: 8 Reply 27, posted (2 months 4 weeks 6 hours ago) and read 5530 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.
"Oh look at the sUGAr falling out of the sky! Look at the sUGAr falling out of the sky!" LM 1922-2011 Go Dawgs! G.A.T.A.
VictorKilo From United States of America, joined Jul 2006, 298 posts, RR: 0 Reply 28, posted (2 months 4 weeks 6 hours ago) and read 5473 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.
goosebayguy From United Kingdom, joined Sep 2009, 220 posts, RR: 0 Reply 30, posted (2 months 4 weeks 6 hours ago) and read 5121 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.
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.
Polot From United States of America, joined Jul 2011, 1496 posts, RR: 0 Reply 35, posted (2 months 4 weeks 4 hours ago) and read 4236 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.
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.
luv2fly From United States of America, joined May 2003, 11957 posts, RR: 51 Reply 37, posted (2 months 4 weeks 4 hours ago) and read 4089 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.
SocalApproach From United States of America, joined Feb 2013, 52 posts, RR: 0 Reply 38, posted (2 months 4 weeks 4 hours ago) and read 4030 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.
ezra From United States of America, joined Mar 2000, 455 posts, RR: 2 Reply 39, posted (2 months 4 weeks 4 hours ago) and read 4029 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?
cv880 From United States of America, joined Mar 2007, 989 posts, RR: 2 Reply 40, posted (2 months 4 weeks 3 hours ago) and read 3688 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.
DeltaMD90 From United States of America, joined Apr 2008, 5285 posts, RR: 48 Reply 41, posted (2 months 4 weeks 2 hours ago) and read 3422 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
deltalaw From United States of America, joined Oct 2012, 24 posts, RR: 0 Reply 42, posted (2 months 4 weeks 2 hours ago) and read 3427 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
XT6Wagon From United States of America, joined Feb 2007, 3129 posts, RR: 4 Reply 43, posted (2 months 4 weeks 2 hours ago) and read 3270 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.
AeroWesty From United States of America, joined Oct 2004, 18815 posts, RR: 64 Reply 44, posted (2 months 4 weeks 2 hours ago) and read 3189 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.
PIEAvantiP180 From United States of America, joined Sep 2009, 469 posts, RR: 0 Reply 46, posted (2 months 3 weeks 6 days 22 hours ago) and read 1832 times:
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.
indiansbucs From Costa Rica, joined May 2007, 151 posts, RR: 0 Reply 47, posted (2 months 3 weeks 6 days 22 hours ago) and read 1831 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.
lightsaber From United States of America, joined Jan 2005, 10649 posts, RR: 100 Reply 48, posted (2 months 3 weeks 6 days 19 hours ago) and read 1486 times:
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.
Philly65 From United States of America, joined Jul 2007, 57 posts, RR: 0 Reply 49, posted (2 months 3 weeks 6 days 19 hours ago) and read 1445 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?
DeltaMD90 From United States of America, joined Apr 2008, 5285 posts, RR: 48 Reply 50, posted (2 months 3 weeks 6 days 18 hours ago) and read 1372 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.
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!