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Old Dec 2, 12, 8:37 am   #1
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Virgin-Delta Atlantic



http://www.telegraph.co.uk/finance/n...-Atlantic.html
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Old Dec 2, 12, 4:21 pm   #2
 
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Interesting development. Delta is being as proactive as ever but I wonder how much Air France-KLM actually wants in given that they are still trying to get their own house in order. I wonder what Star is thinking.
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Old Dec 2, 12, 5:13 pm   #3
 
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I think this is a good move.

A VS/DL combo would be a great one (again). Hopefully something comes of it.
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Old Dec 2, 12, 7:48 pm   #4
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Grrr...does that mean Skypesos can be redeemed on VS? That's a significant devaluation right there.
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Old Dec 2, 12, 11:01 pm   #5
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Grrr...does that mean Skypesos can be redeemed on VS? That's a significant devaluation right there.
Why? If there is no YQ, it is another partner for an airline that is very stingy with awards.
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Old Dec 3, 12, 1:34 am   #6
 
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I read the telegraph report yesterday. I appreciate that the airline has lost money this year. Its changing its CEO, and getting short haul routes. I feel this is a bad move for Virgin. Its only my gut feeling, I appreciate that raising capital is difficult at the moment. The UK needs a strong independant airline, along side BA. I feel Delta just wants Heathrow landing slots. If we had a third runway, they wouldnt even look at VS, instead allow it to fail. I also feel, pre internet (I might be wrong) that VS was the only thing that made Virgin group. Othewise it wouldnt be the global company it is today.
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Old Dec 3, 12, 3:00 am   #7
 
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I think the Virgin brand will still exist, just that SRB will be a minority shareholder - much like Virgin America and Virgin Australia. I mean Virgin Australia has flourished recently so it is not an indication of a down hilll road.

I would say it is the opposite. Delta and VS used to be good partners, DL even used to have a staff member on some VS flights if we go back a few years!
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Old Dec 3, 12, 4:41 am   #8
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Why? If there is no YQ, it is another partner for an airline that is very stingy with awards.
I suppose the reverse will be true for Delta Medallion members so there's more comptetition for award seats?
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Old Dec 3, 12, 4:52 am   #9
 
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I think the Virgin brand will still exist, just that SRB will be a minority shareholder - much like Virgin America and Virgin Australia. I mean Virgin Australia has flourished recently so it is not an indication of a down hilll road.

I would say it is the opposite. Delta and VS used to be good partners, DL even used to have a staff member on some VS flights if we go back a few years!
Well, in this case DL would be the minority partner as they can't own more than 49% legally. So unless AF/KLM come on board to take some of SRB/Virgin Group's stake they will remain in control. While not as bad as in the past I too wonder if AF/KLM are de-basket cased enough to take that on...if SRB is even willing to dilute his stake.
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Old Dec 3, 12, 2:19 pm   #10
 
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The FT, which has a solid track record of accuracy on reporting aviation deals, has quite a lot of detail on the potential deal, suggesting that AF-KLM could acquire 5-10% of VS, giving SkyTeam carriers control of the airline.

http://www.ft.com/cms/s/0/193efefa-3...#axzz2DvBR1V4J

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One analyst, who declined to be named, said Singapore had realised that it did not wield significant influence at Virgin – and therefore he questioned what level of control the US airline would have.The answer might be found at Air France-KLM. It was considering the case for buying a stake of between 5 and 10 per cent in Virgin Atlantic, said another person close to the potential deal, who stressed no decisions had been taken.

This person said the logic of any transaction involving Air France-KLM would be to secure control of Virgin for SkyTeam – the global airline alliance led by the Franco-Dutch group and Delta.

[...]

If Air France-KLM bought a stake in Virgin, it would purchase equity from Sir Richard’s Virgin Group, which owns 51 per cent of the UK airline.

However, such a development would only happen if Delta were able to reach a deal with Singapore Airlines on its 49 per cent stake in Virgin Atlantic.

Air France-KLM had no appetite to buy a stake of more than 10 per cent in Virgin, added the person close to the matter. The group is the most leveraged of the big European flag carriers and is seeking to cut its debt. Air France-KLM declined to comment.
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Old Dec 3, 12, 7:29 pm   #11
 
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Has there been any word as to whether or not SRB would be willing to sell? All the speculation is great and all, but if he isn't selling then delta is going to be in the same boat that Singapore Airlines is right now.
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Old Dec 5, 12, 4:19 pm   #12
 
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Has there been any word as to whether or not SRB would be willing to sell? All the speculation is great and all, but if he isn't selling then delta is going to be in the same boat that Singapore Airlines is right now.
SRB has said in the past he is willing to sell down part of his stake, but has expressed a preference for a new investor acquiring SQ's stake instead. Put another way, I don't think he has said explicitly he's willing to cede control.
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Old Dec 7, 12, 4:02 pm   #13
 
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Sq doesn't really need cash, I hope they dont sell vs & instead vs joins star alliance.
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Old Dec 7, 12, 4:07 pm   #14
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Sq doesn't really need cash, I hope they dont sell vs & instead vs joins star alliance.
I doubt star would want them in. Europe is packed with members.
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Old Dec 8, 12, 9:37 am   #15
 
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SRB has said in the past he is willing to sell down part of his stake, but has expressed a preference for a new investor acquiring SQ's stake instead. Put another way, I don't think he has said explicitly he's willing to cede control.
I thought he asked one of the investment companies to look at all the options.
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