Alaska reportedly bidding on Virgin America

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Mar 31, 2016, 7:02 pm

#91

jiburi

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While I hope AS is successful being the winner, VX isn't decided on their decision to sell. The company isn't broken and is still making a profit.

While higher price might be an influence, VX investors might prefer the improved synergies of the route network. B6 might be the winner with that respect.

I wonder if AS and Hainan might be better off working with each other in improving both of their position for VX. Hainan can out bid both AS and B6.

Jiburi

Last edited by jiburi; Mar 31, 2016 at 7:24 pm

Mar 31, 2016, 8:20 pm

#92

notquiteaff

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Quote:

Originally Posted by jiburi

I wonder if AS and Hainan might be better off working with each other in improving both of their position for VX. Hainan can out bid both AS and B6.

I don't think Hainan can buy a majority stake in VX no matter what they are willing to pay. (I think the limit is 25%)

Mar 31, 2016, 8:55 pm

#93

jiburi

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Quote:

Originally Posted by notquiteaff

I don't think Hainan can buy a majority stake in VX no matter what they are willing to pay. (I think the limit is 25%)

I meant to say, HU 25%, and rest between the new VX/AS.

B6/VX combination improves domestic network
HU/VX/AS combination improves international network (asia) and some domestic

Jiburi

Apr 1, 2016, 1:02 am

#94

Fanjet

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Quote:

Originally Posted by radarskiy

AS already has twice as many out-of-perimeter slot pairs as DL.

DCA has two different types of restrictions in place. A perimeter rule and slot restrictions. While AS has twice as many beyond-the-perimeter allocations as DL, DL has a far greater amount of slot pairs as AS. The DoJ would not take a slot pair away from a merged AS/VX to facilitate this, and in turn give it to a much larger airline at DCA like DL. Moreover, if DL wants to switch one of their two DCA-SLC flights to SEA, they can. IIRC, only one of the two allocations is SLC specific. And this is how AA was able to switch DCA-SAN over to a second DCA-LAX flight.

Apr 1, 2016, 11:04 am

#95

haddon90

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Quote:

Originally Posted by ashill

I'm almost certain that's not true. As I recall, in the last round of beyond-perimeter slot awards, the four legacies (AA, DL, UA, US) each got one unrestricted beyond-perimeter slot pair (AA now has two of those), and there were four more pairs for everyone else to bid on. Once awarded, those slot pairs could only be used for the destination airport they were awarded for. That round went to B6 (SJU), WN (AUS), VX (SFO), and AS (PDX), if I remember correctly.

ETA: Yes, I remembered the details correctly. DOT press release, found via Wikipedia.

i'm sure they can get out of that. US was awarded DCA-SAN but i believe moved it to LAX.

edit: never mind this was covered in the post above

Apr 1, 2016, 4:59 pm

#96

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Quote:

Originally Posted by haddon90

i'm sure they can get out of that. US was awarded DCA-SAN but i believe moved it to LAX.

edit: never mind this was covered in the post above

US was not awarded DCA-SAN. US was allowed to convert one of their existing slots to anywhere it wanted. It chose San Diego. This made it so Alaska was denied their application for San Diego.

https://www.transportation.gov/brief...ngton-national

"The new law also allowed four large carriers already serving Reagan National to exchange a total of eight slots for flights within the perimeter for an equal number of slot exemptions to permit nonstop flights beyond the perimeter. As a result, American Airlines will trade one round-trip flight to Dallas-Fort Worth for a flight to Los Angeles, Delta Airlines Lines will trade one round-trip flight to New York LaGuardia Airport for a flight to Salt Lake City, United Airlines will trade one round-trip flight to Chicago O’Hare for a flight to San Francisco, and US Airways will trade one round-trip flight to Dallas-Fort Worth for a flight to San Diego."