rwy04lga
Topic Author
Posts: 1976
Joined: Mon Jul 18, 2005 7:21 am

Virgin Atlantic Will Not Join SkyTeam yet

Thu Mar 21, 2013 3:21 pm

Just accept that some days, you're the pigeon, and other days the statue
 
User avatar
STT757
Posts: 13223
Joined: Tue Mar 28, 2000 1:14 am

Virgin Atlantic Will Not Join SkyTeam yet

Thu Mar 21, 2013 3:23 pm

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,
Eastern Air lines flt # 701, EWR-MCO Boeing 757
 
AeroWesty
Posts: 19551
Joined: Sat Oct 30, 2004 7:37 am

Virgin Atlantic Will Not Join SkyTeam yet

Thu Mar 21, 2013 3:24 pm

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.
International Homo of Mystery
 
jetlanta
Posts: 1487
Joined: Thu Jul 12, 2001 2:35 am

Virgin Atlantic Will Not Join SkyTeam yet

Thu Mar 21, 2013 3:25 pm

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.”
 
rwy04lga
Topic Author
Posts: 1976
Joined: Mon Jul 18, 2005 7:21 am

Virgin Atlantic Will Not Join SkyTeam yet

Thu Mar 21, 2013 3:32 pm

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.
Just accept that some days, you're the pigeon, and other days the statue
 
AeroWesty
Posts: 19551
Joined: Sat Oct 30, 2004 7:37 am

Virgin Atlantic Will Not Join SkyTeam yet

Thu Mar 21, 2013 3:34 pm

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.
International Homo of Mystery
 
FlyASAGuy2005
Posts: 3965
Joined: Sun Sep 23, 2007 4:55 am

Virgin Atlantic Will Not Join SkyTeam yet

Thu Mar 21, 2013 4:23 pm

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.
What gets measured gets done.
 
anstar
Posts: 2871
Joined: Sun Nov 23, 2003 3:49 am

RE: Virgin Atlantic Will Not Join SkyTeam Yet

Thu Mar 21, 2013 8:07 pm

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.
 
virgincrew
Posts: 420
Joined: Sun Oct 03, 2004 1:40 am

RE: Virgin Atlantic Will Not Join SkyTeam Yet

Thu Mar 21, 2013 11:22 pm

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.
Hello Beautiful !!!
 
1400mph
Posts: 1051
Joined: Wed Jan 16, 2013 11:29 am

RE: Virgin Atlantic Will Not Join SkyTeam Yet

Fri Mar 22, 2013 10:56 am

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

(to all intents and purposes anyway)
 
goomba
Posts: 244
Joined: Wed Mar 10, 2004 11:55 pm

RE: Virgin Atlantic Will Not Join SkyTeam Yet

Fri Mar 22, 2013 2:28 pm

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.
 
vv701
Posts: 5783
Joined: Fri Aug 19, 2005 10:54 am

RE: Virgin Atlantic Will Not Join SkyTeam Yet

Sat Mar 23, 2013 4:38 pm

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?
 
anstar
Posts: 2871
Joined: Sun Nov 23, 2003 3:49 am

RE: Virgin Atlantic Will Not Join SkyTeam Yet

Sat Mar 23, 2013 4:47 pm

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.
 
QANTASvJet
Posts: 81
Joined: Mon Sep 24, 2012 11:25 pm

RE: Virgin Atlantic Will Not Join SkyTeam Yet

Sat Mar 23, 2013 4:53 pm

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.
 
vv701
Posts: 5783
Joined: Fri Aug 19, 2005 10:54 am

RE: Virgin Atlantic Will Not Join SkyTeam Yet

Sat Mar 23, 2013 7:15 pm

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?
 
QANTASvJet
Posts: 81
Joined: Mon Sep 24, 2012 11:25 pm

RE: Virgin Atlantic Will Not Join SkyTeam Yet

Sat Mar 23, 2013 7:31 pm

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.