Only Slightly OT - Virgin win EDI & ABZ Heathrow routes
Dec 10, 2012, 3:20 pm
#136
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I do not understand this 70p talk, where can 70p airfares be found?
Is that it?
bmi often sold cheaper tickets partly because of their cost base and because they could command less premium tickets so it probably distorted the trend downward. Then there are fuel prices shooting up and inflation.
Virgin shorthaul, Irish crew, Aer Lingus interior, spread over two different terminals at both LHR and MAN...
I agree with the comments that 49% is risky for practically no control, it is usually best to do this with highly profitable entities that you don't want to control but want a voice.
I believe DL/VS can extract better returns and synergies, with DL wanting more UK origin of traffic. They claim it is a reason for international losses in Europe and Latin American. DL is also a lot larger in London than SQ and joining the Skyteam Joint venture offers synergies.
VS/SQ didn't even codeshare 'til a few years back and had no joint marketing campaigns, no alliance partnerships, no joint marketing schemes.
If VS can join the Skyteam joint Venture I see a lot more synergies, but also it gives DL a bit more of a voice.
From the Bloomberg wire: " The average fare between Glasgow and Heathrow has increased 34 percent since BMI dropped flights and left the route to British Airways, Virgin Atlantic said. An assessment by the European Union antitrust regulator found that competition out of London’s Gatwick and City airports “did not seem to constrain the ability of IAG to increase its prices significantly on the Heathrow-Glasgow route, even for economy restricted fares.”
bmi often sold cheaper tickets partly because of their cost base and because they could command less premium tickets so it probably distorted the trend downward. Then there are fuel prices shooting up and inflation.
SQ have had a non controlling interest for a number of years. You might be better to ask the SQ board on the reason why they invested in VS.
Branson owns 51% Unless he decides to sell enough shares to give someone else a controlling interest...he will be the majority shareholder.
Those are the facts.
Branson owns 51% Unless he decides to sell enough shares to give someone else a controlling interest...he will be the majority shareholder.
Those are the facts.
I believe DL/VS can extract better returns and synergies, with DL wanting more UK origin of traffic. They claim it is a reason for international losses in Europe and Latin American. DL is also a lot larger in London than SQ and joining the Skyteam Joint venture offers synergies.
VS/SQ didn't even codeshare 'til a few years back and had no joint marketing campaigns, no alliance partnerships, no joint marketing schemes.
If VS can join the Skyteam joint Venture I see a lot more synergies, but also it gives DL a bit more of a voice.
Dec 10, 2012, 3:26 pm
#137
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But that's not what DL is going to be. If the off the record briefings are correct, the investment is a pre-cursor to a joint transatlantic business between DL and VS. That business depends not only on regulatory approval but the quality of the relationship between the two parties and if DL is expected to be treated as a silent partner the joint-business will sink. DL is not buying into a heavily loss making business facing major strategic issues to be a silent equity partner.
Dec 10, 2012, 4:32 pm
#139
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Irish crew? OMG...BBQ! You don't find them on BA or VS 
It does make me laugh the evolution of these threads. First it was "blah blah SRB will never succeed in getting these slots". Then it became "SRB will never launch short haul routes". Now it's "SRB will never last on these routes".
As much as I love the BA board, I think some folks need to pull their viewpoints out of the APU of the nearest BA 747's..
It does make me laugh the evolution of these threads. First it was "blah blah SRB will never succeed in getting these slots". Then it became "SRB will never launch short haul routes". Now it's "SRB will never last on these routes".
As much as I love the BA board, I think some folks need to pull their viewpoints out of the APU of the nearest BA 747's..
Dec 10, 2012, 4:43 pm
#140
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Much as I am cynical about SRB and VS, I enjoy hearing supporters of them as it allows a more rounded view of the issues to be achieved.
It may not change your view but does allow you to appreciate others.
Dec 10, 2012, 4:45 pm
#141
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Dec 10, 2012, 6:39 pm
#142
Join Date: Sep 2011
Posts: 62
Mr WW doesn't seem to think the Virgin brand will last long...
http://www.businesstraveller.com/new...-may-disappear
http://www.businesstraveller.com/new...-may-disappear
Some of these businesses were started by Virgin who then sold a minority stake to an incumbent in that industry at a price often much higher than book value.
Even if Virgin were to sell some or all of its stake, there is no reason to assume that the new majority shareholder would not wish to continue trading as Virgin Atlantic. There are numerous airline groups that have more than one brand in their portfolio (hint: IAG).
Dec 11, 2012, 9:54 am
#144
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Oh dear - the rather childish public Walsh/Branson spat just gets worse:
http://www.bbc.co.uk/news/business-20676667
Surely they they should both just grow up and move on - this name calling does neither party any credit.
Walsh: Branson is not going to go away and his operation is a fraction of yours - so live with it.
Branson: You have got a reasonable slice of the pie and constant whinging about how unfair BA is just gets tedious - so live with it
There is merit in both carriers being successful - and while they do compete head-to-head in the market that can only be good for the customer. I just get fed up with the constant alpha-male backbiting and bickering...
Regards
StH
http://www.bbc.co.uk/news/business-20676667
Surely they they should both just grow up and move on - this name calling does neither party any credit.
Walsh: Branson is not going to go away and his operation is a fraction of yours - so live with it.
Branson: You have got a reasonable slice of the pie and constant whinging about how unfair BA is just gets tedious - so live with it
There is merit in both carriers being successful - and while they do compete head-to-head in the market that can only be good for the customer. I just get fed up with the constant alpha-male backbiting and bickering...
Regards
StH
Dec 12, 2012, 12:07 pm
#145
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I'm honestly surprised that its only 34%, it certainly feels like a lot more.
Dec 12, 2012, 1:16 pm
#146
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But that's not what DL is going to be. If the off the record briefings are correct, the investment is a pre-cursor to a joint transatlantic business between DL and VS. That business depends not only on regulatory approval but the quality of the relationship between the two parties and if DL is expected to be treated as a silent partner the joint-business will sink. DL is not buying into a heavily loss making business facing major strategic issues to be a silent equity partner.
Dec 12, 2012, 1:22 pm
#147
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Oh dear - the rather childish public Walsh/Branson spat just gets worse:
http://www.bbc.co.uk/news/business-20676667
Surely they they should both just grow up and move on - this name calling does neither party any credit.
Walsh: Branson is not going to go away and his operation is a fraction of yours - so live with it.
Branson: You have got a reasonable slice of the pie and constant whinging about how unfair BA is just gets tedious - so live with it
There is merit in both carriers being successful - and while they do compete head-to-head in the market that can only be good for the customer. I just get fed up with the constant alpha-male backbiting and bickering...
Regards
StH
http://www.bbc.co.uk/news/business-20676667
Surely they they should both just grow up and move on - this name calling does neither party any credit.
Walsh: Branson is not going to go away and his operation is a fraction of yours - so live with it.
Branson: You have got a reasonable slice of the pie and constant whinging about how unfair BA is just gets tedious - so live with it
There is merit in both carriers being successful - and while they do compete head-to-head in the market that can only be good for the customer. I just get fed up with the constant alpha-male backbiting and bickering...
Regards
StH
Originally Posted by Willie Walsh
Branson is a billionaire banker, allegedly.
Dec 12, 2012, 1:29 pm
#148
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But that's not what DL is going to be. If the off the record briefings are correct, the investment is a pre-cursor to a joint transatlantic business between DL and VS. That business depends not only on regulatory approval but the quality of the relationship between the two parties and if DL is expected to be treated as a silent partner the joint-business will sink. DL is not buying into a heavily loss making business facing major strategic issues to be a silent equity partner.
Dec 12, 2012, 1:39 pm
#149
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Dec 12, 2012, 1:49 pm
#150
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Exactly, quiet confidence often beats unrealistic propaganda.