Last edit by: dmodemd
Other threads of interest:
Alaska Airlines published timeline on VX Mileage Plan elite benefits
VX Catering North of Expected?
AS Mileage Plan and VX Elevate Speculation Thread
AS Merger Impact on VX Routes
VX Acquisition: What, if any, customer experience practices might AS adopt?
AS/VX merger impact on Polenta
Hawaiian after Alaska Air Virgin America Merger
Speculation: AS Acquiring VX: Any Guess as to AA-AS Impact?
WN: Alaska Air buys Virgin America for $2.6 billion
DL to buy VX?
How much would the proposed [NOW ANNOUNCED] VX/AS Merger Affect UA at SFO/West Coast?
VX for sale?
Fortune: Virgin America Can Help Alaska Airlines Up its Game on Several Fronts
RIP VX
jetBlue bids for Virgin America
And there's this priceless gem:
Should JetBlue now buy AS?
Airliners.net thread
What other threads are out there?
Alaska Airlines published timeline on VX Mileage Plan elite benefits
VX Catering North of Expected?
AS Mileage Plan and VX Elevate Speculation Thread
AS Merger Impact on VX Routes
VX Acquisition: What, if any, customer experience practices might AS adopt?
AS/VX merger impact on Polenta
Hawaiian after Alaska Air Virgin America Merger
Speculation: AS Acquiring VX: Any Guess as to AA-AS Impact?
WN: Alaska Air buys Virgin America for $2.6 billion
DL to buy VX?
How much would the proposed [NOW ANNOUNCED] VX/AS Merger Affect UA at SFO/West Coast?
VX for sale?
Fortune: Virgin America Can Help Alaska Airlines Up its Game on Several Fronts
RIP VX
jetBlue bids for Virgin America
And there's this priceless gem:
Should JetBlue now buy AS?
Airliners.net thread
What other threads are out there?
Alaska Air Group to Acquire Virgin America [Discussion from April 4, 2016]
#16
Original Poster
Join Date: Mar 2005
Location: TUS and any place close to a lav
Programs: UA 1.6MM
Posts: 5,423
VX would likely be dead by now were it not for two strokes of luck: the fuel price collapse and UA's post-merger meltdown, which drove numerous SFO customers to VX. Before those events VX always lost mountains of money and the next oil shock / recession / etc. would probably have finished them. As for AS, its odds of survival as is would have been much diminished by a large bicoastal B6+VX tieup.
The A320's will soldier on for some time, when they are sold off or returned to lessors and replaced with 737's. They'll be some consolidation (most likely below the wing services and ground staff), but I can see the VX pilots and FA's being absorbed into AS. The VX hard and soft product will go away, replaced gradually with AS standards.
#19
Join Date: Jun 2005
Location: Seattle & Seoul.... and now, Maastricht....
Programs: UA Mileage Plus, NWA WorldPerks deserter, Alaska Airlines Something-er-Other...
Posts: 1,885
From email just received:
Creating the Premier West Coast Airline.
Good morning, dave1013. As one of our most valued customers, we wanted to be the first to share with you some exciting news that Alaska Airlines is acquiring Virgin America, combining two leading airlines both known for low fares and award-winning customer service. With complimentary West Coast-based networks, operational excellence and a strong commitment to innovation, the joining of Virgin America and Alaska will expand our existing California footprint and grow our transcontinental network, giving you more travel options with 1,200 daily departures nationwide.
We'll keep you updated on the timing and plan for integrating our two airlines.
Thank you for continuing to fly Alaska. We look forward to serving you on your next flight.
Creating the Premier West Coast Airline.
Good morning, dave1013. As one of our most valued customers, we wanted to be the first to share with you some exciting news that Alaska Airlines is acquiring Virgin America, combining two leading airlines both known for low fares and award-winning customer service. With complimentary West Coast-based networks, operational excellence and a strong commitment to innovation, the joining of Virgin America and Alaska will expand our existing California footprint and grow our transcontinental network, giving you more travel options with 1,200 daily departures nationwide.
We'll keep you updated on the timing and plan for integrating our two airlines.
Thank you for continuing to fly Alaska. We look forward to serving you on your next flight.
#20
Join Date: Sep 2000
Location: Bay Area, California, USA
Programs: 10-year UA 1K and 2 MM, then AA EXP, now BA Silver; next stop, Kayak
Posts: 781
From email just received:
Creating the Premier West Coast Airline.
Good morning, dave1013. As one of our most valued customers, we wanted to be the first to share with you some exciting news that Alaska Airlines is acquiring Virgin America, combining two leading airlines both known for low fares and award-winning customer service. With complimentary West Coast-based networks, operational excellence and a strong commitment to innovation, the joining of Virgin America and Alaska will expand our existing California footprint and grow our transcontinental network, giving you more travel options with 1,200 daily departures nationwide.
We'll keep you updated on the timing and plan for integrating our two airlines.
Thank you for continuing to fly Alaska. We look forward to serving you on your next flight.
Creating the Premier West Coast Airline.
Good morning, dave1013. As one of our most valued customers, we wanted to be the first to share with you some exciting news that Alaska Airlines is acquiring Virgin America, combining two leading airlines both known for low fares and award-winning customer service. With complimentary West Coast-based networks, operational excellence and a strong commitment to innovation, the joining of Virgin America and Alaska will expand our existing California footprint and grow our transcontinental network, giving you more travel options with 1,200 daily departures nationwide.
We'll keep you updated on the timing and plan for integrating our two airlines.
Thank you for continuing to fly Alaska. We look forward to serving you on your next flight.
From WordNet: The adjective complimentary has 2 senses
1. complimentary -- (conveying or resembling a compliment; "a complimentary remark")
2. complimentary, costless, free, gratis, gratuitous -- (costing nothing; "complimentary tickets"; "free admission")
The adjective complementary has 2 senses
1. complementary -- (of words or propositions so related that each is the negation of the other; "`male' and `female' are complementary terms")
2. complemental, complementary, completing -- (acting as or providing a complement (something that completes the whole))
#21
Ambassador: Alaska Airlines
Join Date: Jul 2009
Location: Seattle
Programs: AS MVP Gold
Posts: 2,732
Shame they couldn't hire an editor.
From WordNet: The adjective complimentary has 2 senses
1. complimentary -- (conveying or resembling a compliment; "a complimentary remark")
2. complimentary, costless, free, gratis, gratuitous -- (costing nothing; "complimentary tickets"; "free admission")
The adjective complementary has 2 senses
1. complementary -- (of words or propositions so related that each is the negation of the other; "`male' and `female' are complementary terms")
2. complemental, complementary, completing -- (acting as or providing a complement (something that completes the whole))
From WordNet: The adjective complimentary has 2 senses
1. complimentary -- (conveying or resembling a compliment; "a complimentary remark")
2. complimentary, costless, free, gratis, gratuitous -- (costing nothing; "complimentary tickets"; "free admission")
The adjective complementary has 2 senses
1. complementary -- (of words or propositions so related that each is the negation of the other; "`male' and `female' are complementary terms")
2. complemental, complementary, completing -- (acting as or providing a complement (something that completes the whole))
#22
Join Date: Oct 2015
Location: Pacific Wonderland
Programs: ʙᴏɴᴠo̱ʏ Au, IHG Au, HH Dia, Nexus, Pilot FlyingJ Preferred
Posts: 5,336
New Alaska Blog post this morning too. The merger website referenced in the post wasn't working yet when I got up this morning. Hot off the presses.
I'm still standing by my tail prediction, for now, and adding Alaska's service improvement will be unbuckling and closing the First-Coach curtain and redirecting coach pax to the rear lavs.
I'm still standing by my tail prediction, for now, and adding Alaska's service improvement will be unbuckling and closing the First-Coach curtain and redirecting coach pax to the rear lavs.
#23
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Bay Area, CA
Programs: UA Plat 2MM; AS MVP Gold 75K
Posts: 35,068
Virgin, sure. But AS? No pillows, no blankets, no pre-departs in F? DL can do all that. The updated look and food options at the DL SkyClubs blow the AS BRs away. And no PTVs on any aircraft on AS?
From a product perspective, AS may not necessarily even threaten UA. This could get very ugly very quickly if AS doesn't do some serious introspection and understand its competitive position with its product now that they've decided to play ball in SFO and LAX. The customer mindset in SFO and LAX cannot be any further than the SEA mindset that AS is accustomed to.
That would be smart, though I don't see that happening. This is a clear acquisition.
#25
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Bay Area, CA
Programs: UA Plat 2MM; AS MVP Gold 75K
Posts: 35,068
Last edited by channa; Apr 4, 2016 at 9:31 am
#26
Join Date: Nov 2012
Location: PDX/AVL
Programs: AS MVPG75K, HH Diamond
Posts: 307
Shame they couldn't hire an editor.
From WordNet: The adjective complimentary has 2 senses
1. complimentary -- (conveying or resembling a compliment; "a complimentary remark")
2. complimentary, costless, free, gratis, gratuitous -- (costing nothing; "complimentary tickets"; "free admission")
The adjective complementary has 2 senses
1. complementary -- (of words or propositions so related that each is the negation of the other; "`male' and `female' are complementary terms")
2. complemental, complementary, completing -- (acting as or providing a complement (something that completes the whole))
From WordNet: The adjective complimentary has 2 senses
1. complimentary -- (conveying or resembling a compliment; "a complimentary remark")
2. complimentary, costless, free, gratis, gratuitous -- (costing nothing; "complimentary tickets"; "free admission")
The adjective complementary has 2 senses
1. complementary -- (of words or propositions so related that each is the negation of the other; "`male' and `female' are complementary terms")
2. complemental, complementary, completing -- (acting as or providing a complement (something that completes the whole))
#27
Join Date: Apr 2003
Programs: B6 Mosaic, Bonvoy LT Titanium (x SPG LT), IHG Spire, UA Silver
Posts: 5,847
I don't know about that.
Virgin, sure. But AS? No pillows, no blankets, no pre-departs in F? DL can do all that. The updated look and food options at the DL SkyClubs blow the AS BRs away. And no PTVs on any aircraft on AS?
From a product perspective, AS may not necessarily even threaten UA. This could get very ugly very quickly if AS doesn't do some serious introspection and understand its competitive position with its product now that they've decided to play ball in SFO and LAX. The customer mindset in SFO and LAX cannot be any further than the SEA mindset that AS is accustomed to.
Virgin, sure. But AS? No pillows, no blankets, no pre-departs in F? DL can do all that. The updated look and food options at the DL SkyClubs blow the AS BRs away. And no PTVs on any aircraft on AS?
From a product perspective, AS may not necessarily even threaten UA. This could get very ugly very quickly if AS doesn't do some serious introspection and understand its competitive position with its product now that they've decided to play ball in SFO and LAX. The customer mindset in SFO and LAX cannot be any further than the SEA mindset that AS is accustomed to.
The DCA/LGA within perimeter slots would be best sold to a competitor as neither AS nor VX have any strength at all within the Eastern half of the US. This may help AS get a little of their overpayment back but also strengthens their competitors who already have a more diversified network. Offering a mediocre product in SFO non-stop to a few destinations and then having to connect in SEA for the rest makes WN/UA and even DL/AA a lot more compelling. If you are not going to get anything special, you may as well at least gain access to a decent network. AS also just can not compete against B6's Mint product either--on price point, food, inflight entertainment or service. Without Red, good quality food, and the better seat which VX provides, they are in an even weaker position in premium transcon markets.
Seems AS's management has acted out of fear rather than rationality and ended up paying a ton of money which benefited all of those of us that had VX stock and sold out today, but they better think quickly about how they are going to start to pay down the huge debt they are going to be incurring. Offering the AS cabin experience and a still weak network to most of the world is just not going to be a money making proposition and will drain resources from their fight against DL in SEA.
The economies in SEA/PDX/SFO are doing great now but as many of us seen, tech goes through booms and busts just like the airlines and having all of AS's eggs in the West may very well prove to be a very big mistake. It took VX nearly its whole existence to start making money and that came during a crash in oil prices. Things won't be too pretty when the next bust comes and the "diversification" to add yet another West Coast hub may not seem too smart. They could have used their cash to invest in Apple a few months again and had a very large cushion rather than flush money down the drain.
California does gain a tax windfall though for the huge gains made in the short 17 months since the IPO. Small consolation prize.
#28
Join Date: Dec 2014
Programs: HHonors Gold, Hertz 5*, SPG Gold, AMEX Plat, buys Spirit tickets at the airport ticket counter ;-)
Posts: 498
Lots of questions and few answers so far on the following items:
-How does AS compete in product-rich transcons full of established players with much deeper pockets and market tenure (ie. DL).
-Does the VX brand continue on the Airbus flying? Sounds like it won't but I cannot imagine the Alaska brand being a good for for NY-LA, NY-SF, NY-Florida flying
-How does AS convert VX loyalists who love the on-board experience and brand who will risk being forced to fly a more basic product?
-How does AS compete in product-rich transcons full of established players with much deeper pockets and market tenure (ie. DL).
-Does the VX brand continue on the Airbus flying? Sounds like it won't but I cannot imagine the Alaska brand being a good for for NY-LA, NY-SF, NY-Florida flying
-How does AS convert VX loyalists who love the on-board experience and brand who will risk being forced to fly a more basic product?
#29
Join Date: Oct 2010
Location: San Diego, Ca
Programs: AA 2MM LT PLT; AS MVP Gold75k; HHonors Diamond; IHG PLT
Posts: 3,502
Hawaii concerns?
The merged entity will have the largest share of flights between Hawaii and the West Coast. At what point will regulators, activists start to raise concerns?
#30
Join Date: Aug 2006
Location: SJC
Programs: DL PM MM, Marriott Titanium
Posts: 3,276
Why? UA still has SFO/LAX to all the islands, DL and AA fly LAX to all the islands and DL still has SFO - HNL, and HA flies a lot of routes to the mainland to some other cities.