Delta buys 49% of Virgin Atlantic (official)
Dec 3, 2012, 1:21 am
#31
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Dec 3, 2012, 1:24 am
#32
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Dec 3, 2012, 2:21 am
#33
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Other than SQ is the ones selling the shares, I don't see how they have anything at all to do with this discussion. Despite the 49% ownership, they are a very minor partner with VA wrt flights.
I agree with those who say DL wants the LHR O/D traffic feeding US domestic. The other routes just do not look to be much of a value add to the bottom line.
I am curious what is up with US (and AA) on this. Does the silence about that imply it is clear that the future there is US+AA in OneWorld?
I agree with those who say DL wants the LHR O/D traffic feeding US domestic. The other routes just do not look to be much of a value add to the bottom line.
I am curious what is up with US (and AA) on this. Does the silence about that imply it is clear that the future there is US+AA in OneWorld?
Dec 3, 2012, 5:06 am
#34
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Having VS as a JV between DL and AF could actually be interesting. Hopefully change #1 would be discontinuing Delta service to LHR and instead have VS be the sole operator from LHR to the States.
#2 ... Maybe the VS Clubhouse head executive would take over looking after SkyClubs?
The only thing SQ is considering doing here is SELLING their shares in VS.
Is been roughly a decade since DL and SQ were partners; nothing contemplated here is going to re-activate that.
#2 ... Maybe the VS Clubhouse head executive would take over looking after SkyClubs?
The only thing SQ is considering doing here is SELLING their shares in VS.
Is been roughly a decade since DL and SQ were partners; nothing contemplated here is going to re-activate that.
Dec 3, 2012, 6:01 am
#35
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For US East Coasters this provides another path to Asia flying east. I recently flew AF MIA-CDG-PEK in Premium Economy and it was great. Would do it again in a flash and VS would provide a second way to do it on ST. Awesome!
Dec 3, 2012, 7:04 am
#36
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Dec 3, 2012, 7:46 am
#37
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This is a change I would LOVE - more service to LHR on premuim aircraft (although the refurbished 767ERs are great up front). As I plan on going back and forth to LHR more in the next few years I would take advantage!
Dec 3, 2012, 7:54 am
#38
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Having not stepped on a DL plane since May (was at 124 MQM and held short), this would pull me back to DL. I've been flying BA/AA since.
Being West Coast based the direct non-stops into LHR would be heaven sent.
VS have a very loyal customer base in the UK, but when they need to get to some remote destinations in the US they are forced to go on other carriers. This would really level the playing field with BA/AA/IB tie up.
Certainly would be a huge (and much needed) coup to ST.
Now we just have to wonder about SWU's!
Being West Coast based the direct non-stops into LHR would be heaven sent.
VS have a very loyal customer base in the UK, but when they need to get to some remote destinations in the US they are forced to go on other carriers. This would really level the playing field with BA/AA/IB tie up.
Certainly would be a huge (and much needed) coup to ST.
Now we just have to wonder about SWU's!
Dec 3, 2012, 9:15 am
#39
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It would be nice to get VS back. Can you imagine to use the VS lounge @ LHR with your SM card 
With the BMI deal going to BA and a long road into joining *A it might be the best for SQ to sell. With the Delta network in the US and the KL/AF network in Europe it might work out just fine.
With the BMI deal going to BA and a long road into joining *A it might be the best for SQ to sell. With the Delta network in the US and the KL/AF network in Europe it might work out just fine.
Dec 3, 2012, 9:37 am
#41
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In the end it means less competition in the TATL market. For all of you cheering about the VS product be prepared to pay 50% more for that after DL would buy these shares. It's all about money...
Not everybody seems to understand that each and any "independent" airline offering TATL/TPAC service helps getting flights for $ 700 at certain times. If there are only 3 big JV's left over which control ( or better share ) the TATL market i guess that TATL flights starting at $ 1200 off-season.
Not everybody seems to understand that each and any "independent" airline offering TATL/TPAC service helps getting flights for $ 700 at certain times. If there are only 3 big JV's left over which control ( or better share ) the TATL market i guess that TATL flights starting at $ 1200 off-season.
Dec 3, 2012, 9:42 am
#42
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Besides, DL can't control VS, it has to remain under European control. The articles mention that either Branson will keep his 51% or that AF will buy a portion of his stake and DL would buy the 49% from SQ. Regardless, the indications in the article are that Branson wants to remain in control.
Dec 3, 2012, 9:44 am
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Dec 3, 2012, 9:45 am
#44
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While Virgin Atlantic is a safe airline with a decent reputation, the problem with it is coach seating is very narrow and so it often had the lowest priced economy fares on the US to UK route.
Delta had limited 767-400ER service to the UK route but as an airline is doing quite well financially so the acquisition is really buying into an existing carrier to expand service and gain access to the entire Virgin Atlantic fleet.
The combined Delta and Virgin Atlantic will do substantially better together.
Hopefully this means a more competitive and superior product to the UK. But it still has competition from AA, British, and Kuwait airlines.
AA and British were on Oneworld, and Virgin and Delta will be Skyteam.
Perhaps Kuwait could join Star Alliance?
Delta needed service in the UK under its belt as even though the 767-400ER flight was likely selling well, the frequency was so limited so now Delta customers get access to more flights. I presume Delta couldn't have grown on its own because of limited slots so it had to acquire its stake.
Delta had limited 767-400ER service to the UK route but as an airline is doing quite well financially so the acquisition is really buying into an existing carrier to expand service and gain access to the entire Virgin Atlantic fleet.
The combined Delta and Virgin Atlantic will do substantially better together.
Hopefully this means a more competitive and superior product to the UK. But it still has competition from AA, British, and Kuwait airlines.
AA and British were on Oneworld, and Virgin and Delta will be Skyteam.
Perhaps Kuwait could join Star Alliance?
Delta needed service in the UK under its belt as even though the 767-400ER flight was likely selling well, the frequency was so limited so now Delta customers get access to more flights. I presume Delta couldn't have grown on its own because of limited slots so it had to acquire its stake.
Dec 3, 2012, 9:56 am
#45
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In the end it means less competition in the TATL market. For all of you cheering about the VS product be prepared to pay 50% more for that after DL would buy these shares. It's all about money...
Not everybody seems to understand that each and any "independent" airline offering TATL/TPAC service helps getting flights for $ 700 at certain times. If there are only 3 big JV's left over which control ( or better share ) the TATL market i guess that TATL flights starting at $ 1200 off-season.
Not everybody seems to understand that each and any "independent" airline offering TATL/TPAC service helps getting flights for $ 700 at certain times. If there are only 3 big JV's left over which control ( or better share ) the TATL market i guess that TATL flights starting at $ 1200 off-season.