Originally Posted by
motytrah
The thing that doesn't square with all the ST talk with VS is virgin group's interests in Virgin America. It's finally starting to come around on operating income. VX doesn't have the metal/lift to really matter right now, but it has 10 A320s coming over the next 6 years and 30 A320Neo's starting 2020. One would assume they will be locking horns with DL in the domestic market sooner or later.
Virgin America is too small to count in the domestic market and is also at T4 at JFK and is losing money.
Virgin America however has most of its routes out of the California market and is an important airline and Delta's partnership would strongly diminish competition in the marketplace
With Virgin Atlantic, the Delta and Virgin Partnership makes sense because Delta and Virgin cam combine slots that Delta and Virgin couldn't get otherwise.
But Virgin America AND Delta would be anti competitive in the marketplace knocking out an important carrier.
Virgin America has potential with Frontier Airlines, which likely or has already begun to be spun off from Republic Airways.
I would say a Virgin America and Frontier Airlines combination make sense considering Frontier is based out of Denver which is a very important travel market that Virgin America is missing.
"Frontier will not complete the separation from Republic until early the first half of 2013.[24]"
Delta won't get the Virgin America part. They don't need it and already serve those routes on their own.
Denver would be an important hub for Virgin America and the two airlines would mean improved marketshare.