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readytotaxi
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DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 9:40 am

The London Sunday Times is reporting today that Delta has made a secret approach to Singapore Airlines to by out their 49% stake in Virgin. "Aviation sources said that the two sides were back in negotiations but it was early days yet"
Singapore paid £600m for its stake back in 1999, both side declined to comment to the newspaper.

If that happened it would give SkyTeam a much larger presence at Heathrow.

(No link to article as it is pay to view)
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LOWS
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 9:43 am

Quoting readytotaxi (Thread starter):
If that happened it would give SkyTeam a much larger presence at Heathrow.

And why is that? I seemed to have missed VA being an active and significant member of Star.
 
deltal1011man
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 9:48 am

Quoting LOWS (Reply 1):

If DL/AF were to buy into VS it would mean a big codeshare....and very likely VS would move into the DL/AF/KL/AZ ATI/JV.

question, could delta buy the 49%? wouldn't AF/KL have to do it?
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LOWS
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:02 am

Quoting Deltal1011man (Reply 2):
question, could delta buy the 49%? wouldn't AF/KL have to do it?

How was SQ able to buy it in the first place then?
 
theginge
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:22 am

The article also says that AF/KLM may look to take a stake in the 51% that is not currently owned by SQ.
 
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:24 am

Quoting Deltal1011man (Reply 2):
question, could delta buy the 49%? wouldn't AF/KL have to do it?

AF/KL, according to the article would buy a portion of the remaining 51%, with Branson perhaps holding on to some minor stake, which would essentially keep the airline under European control (51%).
 
Joost
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:28 am

Quoting Deltal1011man (Reply 2):
question, could delta buy the 49%? wouldn't AF/KL have to do it?

UK (and now EU) airline ownership rules allow for 49% foreign (non-EU) investment. So 49% DL, 51% AF/KL would be allowed.
 
ota1
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:35 am

With SQ have changed it's strategy towards Virgin branded airlines lately (close alliance with and 10% in Virgin Australia and the code share agreement with Virgin America just announced last week) in addition to VS's latest developments (proposesed alliance membership, shorthaul flights, having reached a 4 Star ranking with SkyTrax again, etc.) I'm not too sure SQ is still looking to sell it's shareholing in Virgin Atlantic.
 
Humberside
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:45 am

I'd be interested to see what DL/AF's attitude towards the leisure operations at LGW/MAN/GLA would be if together they took control of VS. For DL/AF it's surely about LHR whereas the leisure operations seem to revolve around Virgin Holidays. Keep them so long as they are profitable? Seperate and dispose? Wasn't there a report late last year, possibly from The Sunday Times, that VS could be split into two?

(Obviously if Richard Branson retains a majority share in VS then the future of the leisure operations is probably far more 'secure')
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Bongodog1964
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:46 am

Quoting readytotaxi (Thread starter):
If that happened it would give SkyTeam a much larger presence at Heathrow.
Quoting Deltal1011man (Reply 2):
If DL/AF were to buy into VS it would mean a big codeshare....and very likely VS would move into the DL/AF/KL/AZ ATI/JV.

SQ's biggest mistake was the terms and conditions attached to their 49% stake. Sir Richard Branson owns 51% via his offshore trusts and as his stake is larger than SQ's he gets to do what he wants when he wants and how he wants. All that the 49% stake gives is 49% of any profits that are earnt.

This is what makes the 49% stake unattractive to SQ and potentially unattractive to anyone else. The best that can be said of it is that it might provide a regular income stream. I'm sure however that if DL is as well managed as its executives consider it is they can find far better things to do with the money.
 
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usdcaguy
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 11:31 am

I think the idea of a DL/AF/KL acquiring VS is fascinating, but DL/AF/KL/AZ/VS should determine their chances of getting approval for a JV before making an investment. I don't see any value in the partnership otherwise. Such an acquisition would be huge for DL given its current debt and pension obligations; it cannot afford to make a mistake. Given this, I question whether adding the VS flights to the scope of the JV would really enable it go against AA and BA at JFK. It would look good, yes, but in my mind, the VS brand seems to have lost a bit of its shine over the past decade and does not seem to be as popular with corporate customers. In that case, I'm not sure adding VS to the scope of the DL/AF/KL/AZ JV would necessarily add much in terms of market share or leverage. I would hope DL/AF/KL would seriously crunch the numbers on this one and weigh the risks before making a decision.

I did notice that The Times named Delta "Americas largest airline". Interesting. I thought that moniker was supposed to belong to United.
 
INFINITI329
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 12:22 pm

Is Branson going to give up control of his pride and joy, VS? I dont think so. I dont think that 51% is going anywhere but remaining with Branson and the Virgin Group.
 
rwy04lga
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 1:36 pm

Quoting usdcaguy (Reply 10):
I did notice that The Times named Delta "Americas largest airline". Interesting. I thought that moniker was supposed to belong to United.

Perhaps he meant after DL 'acquired' (or would that be 'merged with'? ) VS.

At the moment, UA is larger than DL.
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DLPMMM
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 3:32 pm

Quoting rwy04lga (Reply 12):

It depends on what metric is used for measurement I think.

UA was larger by every metric right after merging with CO, but they have shrunk some during integration.

Last I saw a couple of months ago, DL was larger in some metric areas, but I don't remember which.
 
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 3:37 pm

Quoting usdcaguy (Reply 10):

Well, there are multiple ways an airline could be the world's largest. For example, DL still carry's more passengers than UA does, they also have a larger fleet. But UA has more passenger-kilometer's flown.

It is very hard to say who is the world's largest airline, there are multiple different ways that could be twisted.
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ordbosewr
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 3:40 pm

Quoting rwy04lga (Reply 12):
Perhaps he meant after DL 'acquired' (or would that be 'merged with'?&nbsp Wink VS.

At the moment, UA is larger than DL.

I am not sure this is technically possible given all of the rules associated to ownership.
If VS would become a US based airline then it would be subject to all of the US bi-laterals and frankly that would kill VS.
It is more likely that DL would get the 49% and then AF-KL would get a few more % giving the alliance the ability to make all decisions, but VS would remain a EU based airline.

My big question is how does this really help DL? (besides the fact of keeping VS out of *A, which would be big for LHR fliers)

Quoting usdcaguy (Reply 10):
I did notice that The Times named Delta "Americas largest airline". Interesting. I thought that moniker was supposed to belong to United.

But United isn't just the largest in the US, but the world (based on the most widely recognized metric, but it is argument that is never over)... So it just goes to prove that these reporters are asked to write on subjects they are not experts in.
 
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 3:51 pm

Quoting LOWS (Reply 1):

It's simple really. VA joining Skyteam would increase the amount of Skyteam traffic at LHR. It's like math for airports.
 
commavia
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 3:57 pm

I guess it would make sense for both carriers on some levels, although it seems not to on others.

To start with the obvious, Virgin's pool of LHR slots is - to be sure - quite valuable, and the combination of Delta and Virgin would be a formidable #2 competitor in the U.S.-LHR market (albeit still dramatically far behind AA/BA). Coordinating their networks would allow the two carriers to optimize schedules in overlapping markets - JFK/BOS-LHR - and boost Delta's competitiveness in several important U.S. markets where LHR is a big local market (MIA and LAX). And, of course, Virgin's beyond-LHR connectivity to India/Mid East/Africa, plus soon several domestic and European/Near East markets, wouldn't hurt, either. For Virgin, connectivity from Delta - particularly over JFK - would open up a far larger network in the U.S. than they have ever had access to before, which could only help their strategically critical Atlantic network.

I think the value and logic for Virgin is obvious. On the other hand, though, I do question how much value this would really generate for Delta. I suppose if they are really that eager to get into the LHR market in a big way, buying into it via Virgin would probably be their best (only) option. Nonetheless, I am not sure if putting millions into an airline with a somewhat questionable long-term strategic direction would be such a smart investment. Plus, in terms of connectivity, only a certain portion of Virgin's U.S. network (JFK, BOS, MIA, LAX, possibly MCO and EWR) would be substantially relevant to Delta's network, while the rest of it (ORD, SFO, LAS, IAD, etc.) would be somewhat less relevant to the combined pair. As for connectivity over LHR, Virgin adds absolutely nothing that Delta doesn't already have via Air France and/or KLM - in fact in just about every beyond-LHR market, Air France and/or KLM already offers more and/or better connectivity than Virgin would or could.

Interesting ...
 
rwy04lga
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 4:01 pm

So, DL buys SG's 49% and AF/KL buys whatever SRB allows from the other 51%, if not the whole kit. It'll be a JV between DL and AF/KL/AZ/VS
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LOWS
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 4:20 pm

Quoting d93 (Reply 16):
It's simple really. VA joining Skyteam would increase the amount of Skyteam traffic at LHR. It's like math for airports.

No kidding, but SQ owning VS hasn't gotten them into Star. So it follows that just because DL bought a share, they're not going to jump into Sky.
 
deltalaw
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 4:43 pm

DL has become more aggressive recently with investment in foreign airlines (AM and G3). Those examples are much smaller stakes though...purchasing 49% of VS would be a huge capital outlay. I wonder what percentage of their 600 million SQ plans on trying to get back?
 
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 4:55 pm

I'll believe it when I see it (not saying that in a skeptical way, but I know the reality behind most Delta rumors.) I do have a question though, would DL owning 49% and AF/KL owning 2+%, giving them at least 51%, allow them to call most of the shots? How much control would DL/AF/KL have?

There has to be assurances, I don't think DL is going to blow, what, 600mil pounds and just "hope" they'll get in a JV. Plus, what would be the regulatory hurdles, if there are any?

I'm cautious to say this would be very good news. Obviously, DL and partners can't be #1 to LHR with BA dominating the scene, but there is nothing wrong with being a strong (even if distant) #2... LHR is a very coveted market
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 5:03 pm

As US carriers retake their rightful place at the very top of the global commercial aviation hierarchy, expect to see more proposals like this one.

A tie-up with VS makes good sense for Delta. Why? As the AA/BA JV cooperation deepens, and new United leverages its larger size to maximize financial upside on Heathrow flying, Delta is at risk on being an "odd man out" with a subpar number of frequencies and gateways to the number 1 European destination from the United States. The marketplace has increasingly made clear that going forward, victory in chasing the all-important premium traffic will primarily be had by carriers that offer a comprehensive "all in one" solution for flying to/from a given region of the world. Delta offers great service levels to continental Europe, but it stands to lose corporate contracts if it's not more competitive to the UK, and this is a way to get there.

And FWIW, should this tie-up occur, no one should expect either DL or VS to maintain the same patterns of USA-LHR flying that they offer today. I'd expect BOTH carriers to aggressively redeploy various fleet types to expand the number of US cities served from LHR.
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 5:10 pm

For DL and VS this would be a deal that would allow them to link-up and really take the competition to AA/BA (would still be market leader) and UA/AC.

In the core London-NY market the two carriers would be able to offer six flights a day, which gicen BA/AA are effectively running a LHR-JFK shuttle, and UA has a 5xDaily LHR-EWR service would be a key move. It would also strengthen massively SkyTeam in London.

VS/DL would serve BOS, JFK, EWR, IAD, MIA, ORD, DTW, MSP, ATL, SFO, LAX and YVR from LHR, with LAS and MCO from LGW. WHilst LHR would be key to a deal, a JV would help the LGW ops too. I don't think that it was coincidence that the AA/BA ATI deal saw BA go from 5xWeekly to Daily on the LGW-TPA route.

In a wider sense, a DL/VS tie-up would really strengthen SkyTeam in London, which given it's a huge O&D market would be a bit of a coup. AF/KL have the European feed tied up through CDG and AMS, but in terms of point-pount London would be a market that SkyTeam would get a much greater exposure to.

What's the benefit for VS? It would allow it to play the competition card, because with SkyTeam being the weakest alliance in the London market VS could legitimately say that it didn't want to join an alliance, but the way the aviation market is going standing alon e wasn't an option so it plans to join up with SkyTeam to take the fight to BA/AA (and the rest of oneworld) and Star Alliance, which it must be said has a pretty big LHR presence on international (which lets face it, despite the pending VS venture into UK domestic, is still where VS makes it bread and butter).
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EricR
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 5:35 pm

Quoting commavia (Reply 17):

I do not think the network is the main motivating factor behind this acquisition. Virgin's network is secondary (perhaps even meaningless). The LHR slots is where the real value is in this transaction and is probably the main reason for DL exploring this opportunity.

For example, let's assume the SFO-LHR route is a money loser. The new owners could easily eliminate the route and associated costs (ie. labor, fuel, etc.) to stop the loss. Then they could route all passengers over another hub (which Virgin could not do on their own), while keeping the underlying AND appreciating asset - the LHR slot.

The key to this transaction is whether DL can get the 49% share at a reasonable price.
 
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 6:15 pm

Quoting avek00 (Reply 22):
As US carriers retake their rightful place at the very top of the global commercial aviation hierarchy, expect to see more proposals like this one.

Are you saying that the US carriers have some kind of birth right to be at the very top of the global commercial aviation hierarchy? That's what "rightful" means, right? How so? And what other US carriers are going to climb to the top next? UA, stuck in a long and painful merger? AA, in bankruptcy?

Quoting LOWS (Reply 19):
SQ owning VS hasn't gotten them into Star. So it follows that just because DL bought a share, they're not going to jump into Sky.

SQ is kind of a "dissident" airline inside *A, while DL leads (or co-leads with AF/KL) Sky Team. Hence the outcome would most likely be different.
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 8:19 pm

Quoting avek00 (Reply 22):

What a ridiculous statement. Why is our rightful place at the top of aviation? What gave us that right and what have we done to keep it?

Prefect outsourcing and bankruptcy?
 
fcogafa
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 8:33 pm

The Telegraph also has a quite damning article on this saying that talk is that VIR has lost its way and is making losses...

http://www.telegraph.co.uk/finance/n...ke-control-of-Virgin-Atlantic.html
 
brilondon
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 9:23 pm

Quoting ORDBOSEWR (Reply 15):
I am not sure this is technically possible given all of the rules associated to ownership.
If VS would become a US based airline then it would be subject to all of the US bi-laterals and frankly that would kill VS.
It is more likely that DL would get the 49% and then AF-KL would get a few more % giving the alliance the ability to make all decisions, but VS would remain a EU based airline.

My big question is how does this really help DL? (besides the fact of keeping VS out of *A, which would be big for LHR fliers)

If DL buys 49% of VA, that doesn't mean that they would make it a US based carrier as per the EU foreign ownership rules, they would have more access to the LHR market with AF/KL making up the other 51% from what I can see.

Quoting LOWS (Reply 19):
No kidding, but SQ owning VS hasn't gotten them into Star. So it follows that just because DL bought a share, they're not going to jump into Sky.

I don't believe that the alliance issue needs to be addressed as VA is not currently in any alliance.

Quoting EricR (Reply 24):
I do not think the network is the main motivating factor behind this acquisition. Virgin's network is secondary (perhaps even meaningless). The LHR slots is where the real value is in this transaction and is probably the main reason for DL exploring this opportunity.

I agree.

Quoting avek00 (Reply 22):

As US carriers retake their rightful place at the very top of the global commercial aviation hierarchy, expect to see more proposals like this one.

What are you talking about? What rightful place do US carriers have at the top of the aviation hierarchy? I did not know they were ever close to being there.
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bomber996
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:15 pm

Quoting avek00 (Reply 22):

As US carriers retake their rightful place at the very top of the global commercial aviation hierarchy, expect to see more proposals like this one.

Even as an American, I think this statement is extremely naive. Even though the US is arguably the largest aviation market in the world, our Legacy carriers have shown time and time again that they're not top tier in the International marketplace. You are entitled to your opinion, but know you'll be open to ridicule with statements like this.

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avek00
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:20 pm

Quoting EricR (Reply 24):
I do not think the network is the main motivating factor behind this acquisition. Virgin's network is secondary (perhaps even meaningless). The LHR slots is where the real value is in this transaction and is probably the main reason for DL exploring this opportunity.

Slots at any airport are meaningless unless they are leveraged to build a strong network. VS and DL, acting alone, are both unable to build the comprehensive network needed to compete effectively against their enlarged competitors who enjoy any combination of greater slots, immunized cooperation, and/or superior fleet/capacity flexibility. Neither carrier, for instance, could likely make a solid go of a Texas-London flight acting alone, but I'd be shocked if a DL/VS JV didn't add IAH-LHR services within 2-3 years.

I'll agree with you that, in time, we would see some substantial shifts in flying as cooperation with DL/AF/KL got underway. For example, I could easily see some of VS' capacity to lower-yield cities like MCO shifted to take over some of DL's existing hub-LHR frequencies. Delta, in turn, can explore opening up LHR service from additional US cities, or else can move to take over some of VS' lower yield flying with smaller aircraft to reduce capacity (and thus drive up yields). With AF/KL, VS gains partners with which it can codeshare to all sorts of cities worldwide, as CDG and AMS are logical onward connecting points to many world cities for the ex-UK traveler.
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n515cr
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:49 pm

Quoting readytotaxi (Thread starter):
Delta has made a secret approach to Singapore Airlines to by out their 49% stake in Virgin.

Guess it's not that secret, eh?
 
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mayor
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:53 pm

Quoting n515cr (Reply 31):
Guess it's not that secret, eh?

Not any more, IF true  
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UAL777UK
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 10:59 pm

Whose kidding who here. Hell will freeze over before SRB gives up his controlling stake in VS. DL can buy 49% if they want but dictating the future of VS is not going to be down to then. VS is very much SRB baby.
 
commavia
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 11:00 pm

Quoting EricR (Reply 24):
For example, let's assume the SFO-LHR route is a money loser. The new owners could easily eliminate the route and associated costs (ie. labor, fuel, etc.) to stop the loss. Then they could route all passengers over another hub (which Virgin could not do on their own), while keeping the underlying AND appreciating asset - the LHR slot.

I doubt we would see much wholesale shifting like that. Part of what Virgin would bring to Delta regarding LHR would be scale and network breadth (specifically in the LHR-U.S. market) that Delta simply cannot ever achieve on its own. Dismantling much of Virgin's LHR-U.S. network ex-Delta hubs wouldn't make much sense in that context. In addition, part of the additive benefit Virgin would hypothetically bring to Delta/Air France/KLM on the U.S. POS is the expanded scope of new nonstop flights to the U.S. which could also be leveraged with U.S. corporate contracts (in addition to those in the U.K.). Again, that would tend to imply to me not much reductions in schedule for Virgin's LHR-U.S. network.

I think more than anything else a Delta-Virgin alliance would mean optimization of the overlap (JFK/BOS-LHR) and integration of Virgin's larger LHR-U.S. network into Delta's U.S. corporate sales network, plus greater feed for Virgin at U.S. gateways and for Delta over LHR.

Quoting avek00 (Reply 30):
Neither carrier, for instance, could likely make a solid go of a Texas-London flight acting alone, but I'd be shocked if a DL/VS JV didn't add IAH-LHR services within 2-3 years.

And I would be shocked if a Delta-Virgin alliance did add IAH-LHR at any time. The market is big, but it's already been spoken for by the five daily flights already offered by the two airlines with massive hubs at either end of the route. I do not believe Delta-Virgin would be able to compete in that market.
 
PHX787
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RE: DL Poised To Swoop On Virgin Atlantic.

Sun Dec 02, 2012 11:07 pm

Would some of the VS A340s be transferred to DL, then, given DL's fleet buying habits?         
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NWADTWE16
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 12:02 am

I agree SRB would never give up control of VS..this thread is alot of speculation and really run off the rails
 
DL747400
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 12:06 am

Regardless of what Virgin does with their A340 fleet, Delta doesn't operate the A340, never has and never will.
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jfk777
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 12:24 am

Quoting LOWS (Reply 3):
How was SQ able to buy it in the first place then?
Quoting commavia (Reply 34):
I doubt we would see much wholesale shifting like that. Part of what Virgin would bring to Delta regarding LHR would be scale and network breadth (specifically in the LHR-U.S. market) that Delta simply cannot ever achieve on its own. Dismantling much of Virgin's LHR-U.S. network ex-Delta hubs wouldn't make much sense in that context. In addition, part of the additive benefit Virgin would hypothetically bring to Delta/Air France/KLM on the U.S. POS is the expanded scope of new nonstop flights to the U.S. which could also be leveraged with U.S. corporate contracts (in addition to those in the U.K.). Again, that would tend to imply to me not much reductions in schedule for Virgin's LHR-U.S. network.

The only USA to LHR gateway VA and DL have in common is JFK, the VA network compliments the DL routes to LHR very nicely. DL & VA may let Virgin fly all the JFK to LHR flights with additional frequencies using DL slots at LHR.
 
TeamintheSky
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 12:26 am

Hi All,

Sky News just did a breaking news story that Singapore Airlines has announced/confirmed they are talking to an interested party(ies) about their 49% stake. This could be very interesting.

Regards,

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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 12:31 am

I really hope this is a reality. Personally I think that the entire Virgin brand would be a great addition to SkyTeam. VS and VA. Now as for VX, they do not really have anything to offer except that they are a fun airline with the best product out there in my opinion but are hemorrhaging money. With the Virgin Group and if EY would join, SkyTeam would really be a nice contender.
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nickofatlanta
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 1:14 am

Quoting DL747400 (Reply 37):

Regardless of what Virgin does with their A340 fleet, Delta doesn't operate the A340, never has and never will.

Interestingly, NW did once order the A340 although it did not take delivery of or operate the A340. I too can not see DL operating the A340.
 
Triple7Lr
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 2:06 am

 
deltal1011man
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 2:21 am

Quoting PHX787 (Reply 35):

No. VS is replacing the A340 for a reason

Quoting jfk777 (Reply 38):
The only USA to LHR gateway VA and DL have in common is JFK, the VA network compliments the DL routes to LHR very nicely. DL & VA may let Virgin fly all the JFK to LHR flights with additional frequencies using DL slots at LHR.

Boston......
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FI642
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 2:24 am

LHR access is king. I'm certain DL would love more access to it. This could all become very interesting. DL to battle the AA/BA alliance.
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AF185
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 5:59 am

   Hope this becomes reality!
 
Byrdluvs747
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 9:14 am

Quoting TeamInTheSky (Reply 39):
Sky News just did a breaking news story that Singapore Airlines has announced/confirmed they are talking to an interested party(ies) about their 49% stake.

Is that really news? SQ has been looking to offload the VS stake for years.
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vhtje
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 9:31 am

How would this impact "the other Virgins"?

I don't have any knowledge on how SRB structures his business interests - are his airline stakes all held independently of each other, or does VS actually hold stakes in the other Virgin-branded airlines?
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LJ
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 9:55 am

Quoting commavia (Reply 17):

I think the value and logic for Virgin is obvious. On the other hand, though, I do question how much value this would really generate for Delta

I don't think you'll have to look at Dl solely. If DL purchases a stake in VS, it would benefit Skyteam as a whole as it can distribtute the slots Skyteam has at LHR more efficiently (at present AF/KL has one or two daily slot sitting flights, which it can't use more efficiently). Moreover, if you look at this from a Skyteam perspective you have an airline which can feed in the US, has domestic UK flights and feeds MUs PVG hub. As such it can offer its corporate clients more reason not to fly the competition.
 
UAL777UK
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RE: DL Poised To Swoop On Virgin Atlantic.

Mon Dec 03, 2012 10:03 am

Quoting TeamInTheSky (Reply 39):
Sky News just did a breaking news story that Singapore Airlines has announced/confirmed they are talking to an interested party(ies) about their 49% stake. This could be very interesting.

Is it breaking news, Sky news are so behind the curve because............

Quoting Byrdluvs747 (Reply 46):
Is that really news? SQ has been looking to offload the VS stake for years.

Exactly. It might be breaking news to Sky but we all know this has been on the cards for years.

Heres a thing though, DL apparently say they want to buy the 49% from SQ but VS retains 51% which it will retain as SRB will not give up control of VS IMHO. Whats to say that VS says well done for buying SQs stake DL but actually we have already made a decision....we are joining Star. THey cannot force VS to do what they want to do, its all going to be interesting for sure.