US Airways Dividend Miles (Pre-FlightFund Merger) - Virgin USA may partner with US Airways

http://www.boston.com/business/globe/articles/2004/03/24/virgin_usa_may_partner_with_us_airways/

Well, they took away the glassware. Finlandia is hit or miss. At least we have kisses (http://www.stuff.co.nz/stuff/0,2106,2853351a4560,00.html) to look forward to.

It does make some sense, Virgin would be limited to a 25% voting stake as a foreign stakeholder in a US-based airline (and I think a 49% equity share) -- U could take equity over cash. I'm guessing the new entity would have to assume the loan debt or pay enough cash to satisfy it. In this scenario, would there be a U left?

Thank you for the link.

I was wondering who the other airline is that they were referring to in the article re landing slots. United??

Sort of what I was thinking here:

http://www.flyertalk.com/forum/Forum51/HTML/006824.html

Why wouldn't Sir Richard just wait a few more months, start up a US company complying with foreign ownership rules and then pick up what he wants in assets from US (and UA?) for a fraction of their worth. He'd also be free of union contracts/obligations.

If US goes down for the count there will be LOTS of gates available in desireable locations. Hitching your wagon to the broken down locomotive that is US wouldn't be a smart idea.

Sir Rick is not remotely interested in aquiring US labor contract. He may be interested in "partnering" with US to buy airplanes or slots. He might even be interested in "partnering" with US with DM (at least in the short term) although I find that unlikely since BMI is a member of the Star Alliance.

But, he can't be interested in merging with US since that means he will be constrained by the labor contracts and gets very little value in return.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by C17PSGR:
He might even be interested in "partnering" with US with DM (at least in the short term) although I find that unlikely since BMI is a member of the Star Alliance.
</font>

That also might Virgin's partnership with Continental.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by C17PSGR:
He might even be interested in "partnering" with US with DM (at least in the short term) although I find that unlikely since BMI is a member of the Star Alliance. </font>

Huh? Virgin Atlantic and Virgin USA are two separate companies. Just look at Virgin Express, which doesn't participate in interlining or the FFP of Virgin Atlantic. Not quite sure what bmi have to do with this in the least (why couldn't Virgin Atlantic partner with two star alliance members?).