Delta buys 49% of Virgin Atlantic (official)
#91
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Originally Posted by adamj023
There are plenty of people that would book Delta that would have never thought to call up Virgin Atlantic to book tickets before and Delta only had minimal 767-400ER Service.
#92
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It increases the total pool of ticket buyers with even more connection flights as well.
It expands UK flights to destinations not available before.
#93
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The thing that doesn't square with all the ST talk with VS is virgin group's interests in Virgin America. It's finally starting to come around on operating income. VX doesn't have the metal/lift to really matter right now, but it has 10 A320s coming over the next 6 years and 30 A320Neo's starting 2020. One would assume they will be locking horns with DL in the domestic market sooner or later.
#94
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The thing that doesn't square with all the ST talk with VS is virgin group's interests in Virgin America. It's finally starting to come around on operating income. VX doesn't have the metal/lift to really matter right now, but it has 10 A320s coming over the next 6 years and 30 A320Neo's starting 2020. One would assume they will be locking horns with DL in the domestic market sooner or later.
#95
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#97
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http://www.airfranceklm.com/en/group...te-governance/
Seems to me 50/50 between French and Dutch executives.
Seems to me 50/50 between French and Dutch executives.
#98
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It's all so European, so it's not like there is a bunch of french people sitting in AMS. Each airline has a management team. KL's is dutch, AF's is french. The parent holding company has a CEO. Jean-Cyril Spinetta and he's french. The Vice chairman is Dutch. The board is 15 people and to make sure no ones feeling are hurt they alternate meetings between AMS and CDG.
http://www.airfranceklm-finance.com/...tive-Committee
Be that as it may, a small percentage of the company is owned by the French Gov't and slightly more of the public share holders are French. As long as that's the case I would assume the CEO will remain French. But it will likely be decades before they would even consider an actual merger akin to DL and NW.
http://www.airfranceklm-finance.com/...tive-Committee
Be that as it may, a small percentage of the company is owned by the French Gov't and slightly more of the public share holders are French. As long as that's the case I would assume the CEO will remain French. But it will likely be decades before they would even consider an actual merger akin to DL and NW.
#99
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Among the many bureucratic impediments (incorporation in two different countries, separate bliateral agreements, etc.) was the fact that KL had brand equity that AF wasn't keen to toss out.
Perhaps being in business under its original name longer than any other carrier does give KL a certain je ne sais quoi - or the Dutch equivalent.
#100
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This is a very important aspect as well. Until there is a real single European sky, and the EU has landing rights agreements on behalf of its member states with all other countries, you do not want to lose existing agreements.
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#101
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The thing that doesn't square with all the ST talk with VS is virgin group's interests in Virgin America. It's finally starting to come around on operating income. VX doesn't have the metal/lift to really matter right now, but it has 10 A320s coming over the next 6 years and 30 A320Neo's starting 2020. One would assume they will be locking horns with DL in the domestic market sooner or later.
Virgin America however has most of its routes out of the California market and is an important airline and Delta's partnership would strongly diminish competition in the marketplace
With Virgin Atlantic, the Delta and Virgin Partnership makes sense because Delta and Virgin cam combine slots that Delta and Virgin couldn't get otherwise.
But Virgin America AND Delta would be anti competitive in the marketplace knocking out an important carrier.
Virgin America has potential with Frontier Airlines, which likely or has already begun to be spun off from Republic Airways.
I would say a Virgin America and Frontier Airlines combination make sense considering Frontier is based out of Denver which is a very important travel market that Virgin America is missing.
"Frontier will not complete the separation from Republic until early the first half of 2013.[24]"
Delta won't get the Virgin America part. They don't need it and already serve those routes on their own.
Denver would be an important hub for Virgin America and the two airlines would mean improved marketshare.
Last edited by adamj023; Dec 5, 2012 at 5:41 pm
#102
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To steer this thread back on topic, the Sunday Times out of the U.K. is explicitly reporting this morning that Branson is prepared to sell some shares and give up controlling interest in Virgin Atlantic...
By way of Bloomberg: http://www.businessweek.com/news/201...-times-reports
And the Sunday Times article itself has an interesting summary, pre-paywall: http://www.thesundaytimes.co.uk/sto/...cle1172853.ece
It's probably worth mentioning that Delta's investors day is Wednesday, which would be a good opportunity to roll this out.
U.K. billionaire Richard Branson is in talks to sell part of his 51 percent stake in Virgin Atlantic Airways Ltd. to Air France-KLM Group (AF), the Sunday Times reported, citing unidentified people with knowledge of the discussions.
A three-way transaction would also see Atlanta-based Delta Air Lines Inc. buying Singapore Airlines Ltd.’s 49 percent share in the U.K. carrier, the Times said. A deal may be concluded early next week, according to the newspaper.
A three-way transaction would also see Atlanta-based Delta Air Lines Inc. buying Singapore Airlines Ltd.’s 49 percent share in the U.K. carrier, the Times said. A deal may be concluded early next week, according to the newspaper.
And the Sunday Times article itself has an interesting summary, pre-paywall: http://www.thesundaytimes.co.uk/sto/...cle1172853.ece
It's probably worth mentioning that Delta's investors day is Wednesday, which would be a good opportunity to roll this out.
Last edited by jrkmsp; Dec 9, 2012 at 7:54 am Reason: Adding about investors day.
#103
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I have 55K VS. Since VS does not fly out of my home airport, I was going to convert them to 110K HH.
It looks like maybe I should hold tight for now, since they may soon have a use on DL or their partners. Correct?
It looks like maybe I should hold tight for now, since they may soon have a use on DL or their partners. Correct?
#104
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#105
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