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-   -   Delta buys 49% of Virgin Atlantic (official) (https://www.flyertalk.com/forum/delta-air-lines-skymiles/1416276-delta-buys-49-virgin-atlantic-official.html)

adamj023 Dec 3, 2012 10:22 am


Originally Posted by pbarnette (Post 19787750)
Given the presence of slot controls at LHR, the impact of the JV on the competitive landscape would likely be exceedingly limited. If anything, I would think this move could potentially increase competition into LHR.

At JFK Delta had limited 767-400ER flights which were very small and too little to count especially because of limited seating on those planes.

Virgin's fleet plans are far superior. If Delta acquires Virgin as their UK partner, I wonder if Delta will still also run the 767-400ER's or will allocate those to better routes.

Oakshadow Dec 3, 2012 11:55 am

I'd be curious about integration/merging with VS's Flying Club (FC) program. FC used to be a very generous one and earning miles, elite or "regular" were accumulated with the lowest fares. Now that's not the case. And here at DL we complain about taxes and fees on award travel. Have a a look at this awards chart with preset taxes and fees listed and you'll see we have it really good.

UA Fan Dec 3, 2012 12:23 pm


Originally Posted by Oakshadow (Post 19788497)
I'd be curious about integration/merging with VS's Flying Club (FC) program. FC used to be a very generous one and earning miles, elite or "regular" were accumulated with the lowest fares. Now that's not the case. And here at DL we complain about taxes and fees on award travel. Have a a look at this awards chart with preset taxes and fees listed and you'll see we have it really good.

Ouch. Hope DL does not have to charge these if they become partners.

bubbashow Dec 3, 2012 12:35 pm


Originally Posted by BER Flyer (Post 19787648)
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.

Come on, BER....don't hit 'em with the facts too-quickly This is FT where business acumen means NOTHING. It's all about getting access to SQ inventory they are unwilling to pay for. cheese, and clubs. :rolleyes:

bubbashow Dec 3, 2012 12:37 pm


Originally Posted by adamj023 (Post 19787919)
At JFK Delta had limited 767-400ER flights which were very small and too little to count especially because of limited seating on those planes.

Virgin's fleet plans are far superior. If Delta acquires Virgin as their UK partner, I wonder if Delta will still also run the 767-400ER's or will allocate those to better routes.

Less seating = lower availability = fewer junk fares to fill them = profitable flights = happy DL. I think DL's fleet plans have served them just fine. Let VS fill a cavernous a46 and 744 with 400 loss leaders.

Deadtail Dec 3, 2012 12:44 pm

Why didn't LedgeT break this news months ago?

bsagator Dec 3, 2012 12:52 pm


Originally Posted by readywhenyouare (Post 19785279)
Hmm, looking at the route map it doesn't look like VS brings much to the table. I wonder if passengers flying VS to Havana, Cuba will be able to earn Skymiles? ;)

It does bring MCO-UK direct flights on ST. Maybe they'll even make one flight to LHR for connecting purposes.

adamj023 Dec 3, 2012 1:02 pm


Originally Posted by bubbashow (Post 19788775)
Less seating = lower availability = fewer junk fares to fill them = profitable flights = happy DL. I think DL's fleet plans have served them just fine. Let VS fill a cavernous a46 and 744 with 400 loss leaders.

Virgin's fleet plans are known and they are very nice jet orders. Delta's customers will be very happy and I wonder if they will phase out the 767-400ER on the LHR route since it won't be profitable to run compared to Virgin's new fleet. American doesn't own a stake in British so under One World both have airplanes in usage for the route.

It sounds to me like Delta should just rely on Virgin and reallocate the 767-400ER to another route. American and British both fly but AA doesn't own a stake in British though British was interested in acquiring a stake in AA at a future date.

Delta customers get access to way more seating so this isn't going to hurt competition as Virgin is going to have bigger jets on their routes. It is a much better and more efficient way.

UA Fan Dec 3, 2012 1:12 pm


Originally Posted by BER Flyer (Post 19787648)
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.

Food for thought. Prices to Europe seem to be rising.

adamj023 Dec 3, 2012 1:14 pm


Originally Posted by mikepa (Post 19786497)
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!

You could have flown MIA to LHR to PEK over Virgin Atlantic. Just because it is under SkyTeam doesn't really change much.

Mergers are just business decisions to profit and find higher revenues for lower costs.

Alliances get bigger and each has their own set carriers. Singapore had business decisions which failed devaluating their investment and Delta has a reason which will increase the valuation of their investment by a lot.

I don't think anything here will benefit consumers much if any. The business will try to make it seem like it is and perhaps there could be some slight tweaks or improvements, but before and after it is still just transportation to get between places using aircraft.

Only thing I could think of is Delta makes connection flights easier, allows integration of clubs and gates and the like, and times connection flights better with Delta.

But on the other hand Virgin has a better reputation than Delta although Virgin is known for tight seats in coach. So it remains to be seen if Virgin will alter its airplane configurations more in line with Delta.

For consumers: Alliance mean little if anything.

canolakid Dec 3, 2012 1:54 pm


Originally Posted by adamj023 (Post 19789006)
For consumers: Alliance mean little if anything.

Actually, for this consumer, alliances generally mean access to a broader range of loyalty-related and presumably loyalty-rewarding options.

adamj023 Dec 3, 2012 2:02 pm


Originally Posted by canolakid (Post 19789227)
Actually, for this consumer, alliances generally mean access to a broader range of loyalty-related and presumably loyalty-rewarding options.

Shopping outside alliances gets you lower price options. With some rewards programs the valuation of the rewards cost less than for using multiple airlines for a route.

Using a singular carrier however is more convenient and easier so many people stick with a carrier for loyalty.

Is it better for Virgin to be in Delta's alliance? Yes. But there will always be new adds to alliances.

adamj023 Dec 3, 2012 2:05 pm


Originally Posted by canolakid (Post 19789227)
Actually, for this consumer, alliances generally mean access to a broader range of loyalty-related and presumably loyalty-rewarding options.

Shopping outside alliances gets you lower price options. With some rewards programs the valuation of the rewards cost less than for using multiple airlines for a route.

Using a singular carrier however is more convenient and easier so many people stick with a carrier for loyalty.

Is it better for Virgin to be in Delta's Skyteam alliance? Yes, I don't see any downsides.

mikepa Dec 3, 2012 2:17 pm


Originally Posted by adamj023 (Post 19789006)
You could have flown MIA to LHR to PEK over Virgin Atlantic. Just because it is under SkyTeam doesn't really change much.

That single trip changed me from DL Gold to Plat with over 25K MQMs.

adamj023 Dec 3, 2012 2:27 pm


Originally Posted by mikepa (Post 19789349)
That single trip changed me from DL Gold to Plat with over 25K MQMs.

Sorry about the double post. Internet connection issues. :-(

It is a benefit for flyers on SkyTeam and will encourage more loyalty and better connections and the like so future flyers will indeed benefit from the FF programs combined and other better shared resources.

But on the backend for Delta, it is more lucrative than it is for consumers.


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