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1400mph
Topic Author
Posts: 1051
Joined: Wed Jan 16, 2013 11:29 am

Question About VS And DL.

Mon Mar 11, 2013 9:51 am

Given that SQ made no secret of its wishes to sell its stake in VS I cannot for the life of me understand why DL did not purchase the 49% stake in VS while BD was still for sale and aid VS in its bid to purchase the carrier.

What an amazing opportunity for DL to gain massive access to LHR missed.

Any thoughts ?
 
Liverpoola380
Posts: 236
Joined: Tue Feb 07, 2012 12:19 pm

RE: Question About VS And DL.

Mon Mar 11, 2013 9:57 am

BD was not profitable and would have been a massive undertaking to integrate the airline.

DL are looking at VS for connections into the US not to expand connections for VS in the UK and Europe
 
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usdcaguy
Posts: 1514
Joined: Mon Jan 26, 2004 12:41 pm

RE: Question About VS And DL.

Mon Mar 11, 2013 10:01 am

Quoting liverpoola380 (Reply 1):
DL are looking at VS for connections into the US not to expand connections for VS in the UK and Europe

That's correct. The issue here is that BD did not offer much in the way of nonstops to the US not already offered by VS. Access to markets like EWR-LHR, SFO-LHR, IAH-LHR, etc. is more important than flying LHR-BEY, etc.
 
charliecossie
Posts: 412
Joined: Wed Oct 10, 2001 5:17 am

RE: Question About VS And DL.

Mon Mar 11, 2013 10:01 am

How would throwing away hundreds of millions of quid/dollars help either Virgin or Delta?
 
1400mph
Topic Author
Posts: 1051
Joined: Wed Jan 16, 2013 11:29 am

RE: Question About VS And DL.

Mon Mar 11, 2013 11:10 am

Aren't you all missing the point ?

Maybe I am ?

Would there have been anything stopping VS from handing some of those slots to DL to support their trans-atlantic venture and allow them to operate more flights into LHR, keeping whatever they wanted and flogging (selling) the rest ?

Also surely a wise long-term investment considering DL's main trans-atlantic alliance is with a currently shaky AF ?
 
cofannyc
Posts: 277
Joined: Thu Jan 18, 2007 10:22 am

RE: Question About VS And DL.

Mon Mar 11, 2013 11:22 am

Quoting 1400mph (Reply 4):
Also surely a wise long-term investment considering DL's main trans-atlantic alliance is with a currently shaky AF ?

So you'd have DL replace a relationship with AF (which has a massive footprint compared to anything VS and BD's slots would bring) because AF is shaky? But you'd replace it again with VS (REALLY shaky right now) and BD (while it has slots, it would also have had to have been largely unwound by VS).

It seems that by going down the VS only road, assuming metal neutrality in any tie up, DL gets expansion at LHR without a whole lot of baggage from having to deal with the BD operation. Also BD would have a sizeable number of slots at times that are unusable for TATL operations.
 
1400mph
Topic Author
Posts: 1051
Joined: Wed Jan 16, 2013 11:29 am

RE: Question About VS And DL.

Mon Mar 11, 2013 11:40 am

Quoting cofannyc (Reply 5):
So you'd have DL replace a relationship with AF

Who said anything about 'replace' ?

On top of and aswell as I was thinking. If anything did happen over at AF DL would have options.

So you are basically saying that given they could have sold what they didn't want, use what they kept to beef up their trans-atlantic schedules........DL would not have been interested ? Are we talking about the same DL here ?

I'm a BA supporter so I'm glad it didn't happen but there was definitely an opportunity missed I feel.

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