Quoting vhtje (Reply 47): How would this impact "the other Virgins"? |
Well Delta already have a Joint Venture with Virgin Australia across the pacific.
Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR
Quoting vhtje (Reply 47): How would this impact "the other Virgins"? |
Quoting ual777uk (Reply 49): 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. |
Quoting ual777uk (Reply 49): 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. |
Quoting TeamInTheSky (Reply 53): Now, will SRB buy this? It really comes down to ego over business sense. |
Quoting TeamInTheSky (Reply 53): However, Ridgeway did just do an interview where he lauded Star's praises. |
Quoting delta2ual (Reply 54): Is Virgin traded publicly? |
Quoting delta2ual (Reply 54): OTOH, if UA was smart, they would buy the stake. |
Quoting TeamInTheSky (Reply 53): I am fairly positive that if DL were to purchase this stake, they would already have agreements in place for AF/KL to take a 2-3% stake as well with the understanding of joining SkyTeam and the DL/AF/KL/AZ joint venture. |
Quoting delta2ual (Reply 54): I don't believe for a minute that DL would pour money into an airline unless they were guaranteed access to LHR and a SkyTeam membership. I'm sure SRB would be part of the discussions, otherwise it would be a complete waste of time and money. |
Quoting ual777uk (Reply 61): Quoting jetlanta (Reply 60): He wants to exit gracefully, with a full wallet and an intact ego. How does he get a full wallet when its SQ stake that is being sold not SRBs? |
Quoting avek00 (Reply 30): 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. |
Quoting commavia (Reply 17): 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 |
Quoting FlyCaledonian (Reply 23): 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 |
Quoting ual777uk (Reply 61): How does he get a full wallet when its SQ stake that is being sold not SRBs? |
Quoting DeltaMD90 (Reply 62): I think he was talking about part or all of the remaining 51%, the part that needs to be purchased in part or in full in order to control VS with the other 49% chunk |
Quote: Since Singapore Airlines, a Star Alliance member, owns 49% of Virgin Atlantic, some think Star is Virgin’s most likely bedfellow. But Virgin’s route network overlaps with those of existing Star Alliance members in too many places: Virgin would clash with ANA on flights to Tokyo, with South African Airways on flights to Johannesburg, and with United-Continental to the US. It is hard to see where Virgin could complement Star’s existing operations, and in any case Singapore Airlines seems disillusioned by Virgin’s latest travails and may divest its shareholding. Of the world’s two other alliances, oneworld is dominated by British Airways and is therefore not an option, so SkyTeam may be Virgin’s last hope. Two years ago, Sir Richard appointed Deutsche Bank to scrutinise a potential deal with AirFrance-KLM and Delta, SkyTeam’s chief members, but talks failed when the Virgin boss demanded a substantial annual fee for the licensing of the Virgin brand. This time, he may have no choice. |
Quoting ual777uk (Reply 55): |
Quoting jetlanta (Reply 60): |
Quoting parapente (Reply 56): Quote, "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". Wrong. The defining business legasy of R Branson is his "exit strategies".It does not matter whether it is his founding area - Music or his second love Airplanes. If the price is right he will sell. That is the one certaintly. |
Quoting Deltal1011man (Reply 69): If he isn't willing to sell....Delta wont buy into the airline. |
Quoting ual777uk (Reply 71): And thats why i dont think this deal will get off the ground, because SRB will not sell his share.....has he ever said anywhere that he would??? |
Quoting Deltal1011man (Reply 72): "Two years ago, Sir Richard appointed Deutsche Bank to scrutinise a potential deal with AirFrance-KLM and Delta, SkyTeam’s chief members, but talks failed when the Virgin boss demanded a substantial annual fee for the licensing of the Virgin brand." This tells me he is at least willing to sit down and talk. The more losses he takes the lower his price will be. |
Quoting readytotaxi (Reply 75): Would be interested in knowing how Delta plan to finace the buyout,if they do go ahead. Are they cash rich at the moment,probably not they're an airline. Go to the banks? Sell something? |
Quoting jetlanta (Reply 76): |
Quoting coronado (Reply 77): |
Quote: Richard Branson said he’s prepared to reduce his stake in Virgin Atlantic Airways Ltd. to aid the U.K. carrier’s search for an alliance partner. Branson, who owns 51 percent of Virgin Atlantic stock, said he’ll always be “a major shareholder” in the Crawley, England- based company and that his preferred option is for Singapore Airlines Ltd. to reduce its 49 percent holding. “If I had to sell a few shares and get the right alliance for Virgin Atlantic I think I would,” the entrepreneur said today in an interview in Miami. “But it’s more likely that we’d get Singapore Airlines to sell a few of their shares and that would be the way we would sort it out going forward.” |
Quoting cloudboy (Reply 81): DL already has enough strong European partners and London flights. |
Quoting readytotaxi (Reply 75): |
Quoting PHX787 (Reply 82): |
Quoting globalflyer (Reply 40): 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. |
Quoting Deltal1011man (Reply 84): Not only does Delta have ~5B they can spend |
Quoting nickofatlanta (Reply 87): I don't think any of the Virgin airlines fly to HNL. |
Quoting Boysteve (Reply 89): That CNN fortune article is the worst article I have ever read |
Quoting deltaflyertoo (Reply 90): I agree! Read it this morning and was shocked. In addition to what you quote is it me or WHERE on this green planet did Branson or anyone at Virgin suggest that they would hand over their prized Heathrow slots to Delta in such a deal. I was shocked CNN so nonchalantly assumes this and suggests this in the article as well as inneuendo that DL is seeking 100%. |
Quoting ual777uk (Reply 33): 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. |
Quoting notdownnlocked (Reply 93): LHR to DL would become the equivalent of MEM/CVG/MCO/DFW and other hubs with frequent flights to ATL. |
Quoting notdownnlocked (Reply 96): just a few weeks ago slots were acquired from someone else to start a 3rd ATL-LHR. |
Quoting notdownnlocked (Reply 96): Of course DL wants LHR slots so they can run who knows how many gazillion flights from ATL to LHR. I could easily see LHR-LAX/SFO/MIA/and many others discontinued in favor of a connection over ATL. |
Quoting mayor (Reply 97): |
Quoting DTWLAX (Reply 98): |
Quoting notdownnlocked (Reply 96): |