viscount630
Posts: 171
Joined: Sun Mar 13, 2005 7:52 pm

US/HP Merger A Way In For VS?

Mon May 16, 2005 12:28 am

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.
 
commavia
Posts: 9744
Joined: Mon Apr 25, 2005 2:30 am

RE: US/HP Merger A Way In For VS?

Mon May 16, 2005 12:33 am

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.
 
flyboyaz
Posts: 2077
Joined: Sat Sep 13, 2003 11:32 am

RE: US/HP Merger A Way In For VS?

Mon May 16, 2005 12:47 am

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.
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dutchjet
Posts: 7714
Joined: Sat Oct 14, 2000 6:13 am

RE: US/HP Merger A Way In For VS?

Mon May 16, 2005 12:49 am

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.
 
flyboyaz
Posts: 2077
Joined: Sat Sep 13, 2003 11:32 am

RE: US/HP Merger A Way In For VS?

Mon May 16, 2005 1:07 am

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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