Westerwaelder wrote:jbs2886 wrote:777ER wrote:This will be interesting for DL and the viability of their SYD service
I doubt it impacts at all. DL will likely continue to operate to serve its customers; in fact, I think this may create a need for another Aussie flight for DL. Just because it lost a partner doesn’t mean the flight now isn’t viable (DL hasn’t used Virgin Australia during the pandemic and has maintained the flight).
I would say that if DL's single flight had been a financial success, they would hardly beeb keen sharing this 50/50 with Virgin Australia? Yes, they could cover a few more destinations s but a simple code-share could have done? Of course things changed when Virgin pulled their longhaul but for DL to share revenue all the way since feels like a good indicator that a partner on the Australia end is needed?
So do you know the contract and how DL could exit the JV? I doubt it. Moreover I doubt DL could do a quick unilateral exit. The JV existed for nearly a decade, from when DL just entered the SYD market. Finally, a JV isn’t a sign of weakness. JVs are just giving away money. And they aren’t just sharing revenue, they share cost. You seem to not understand the basic tenets of contacts and JVs.