FlyerTalk Forums - View Single Post - Delta buys 49% of Virgin Atlantic (official)
Old Dec 12, 2012, 5:09 am
  #244  
Jenbel
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Originally Posted by Cloudship
I would love it if that were the case, but I think reality might be the other way around. I think that Delta might pressure Virgin to eliminate their true Premium Economy product and replace it with an economy plus product (albeit still using the Premium Economy name). Delta will see more value in those extra seats versus the increased revenue, especially when it might steal from business class sales. While they would never have that leverage with AF, They will with Virgin. Also, isn't Air Frances premium economy narrower than VS's?
In the UK market, Premium Economy is often the most profitable part of the plane (higher density seats, so although the profit per seat is not as high as for UC/J the overall profit is higher).

If DL were to do something so short-sighted, then they'd deserve to make a massive loss on their investment. You have to remember, VS are up against BA - who have a real PE product, even if it is not as good as VS'. Bringing in a US style Y+ product, particuarly on the leisure routes, where PE is very popular would be business suicide.
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