I do not understand this 70p talk, where can 70p airfares be found?
Originally Posted by
orbitmic
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.”
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.
Originally Posted by
Speedbird218
Whats confusing about a Virgin branded aircraft, crew in Virgin uniforms and a Virgin flight number?
Virgin shorthaul, Irish crew, Aer Lingus interior, spread over two different terminals at both LHR and MAN...
Originally Posted by
Speedbird218
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.
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.