exwannabe

The general assumption is that US has to give these up as it buys AA.

ANstar

It may be perception - but there is not any significant difference in width between the carriers.

Dieuwer

Everyone I know tells me seats in PE and Upper Class are the best on Virgin, while AA has the worst seats in Y. No kidding.

MegatopLover

CNBC reporting that DL is indeed buying 49% of VS. Official announcement to come later today.

Dieuwer

Will form strategic alliance.

http://news.delta.com/index.php?s=43&item=1822

opus2002

It is now official. Just what does this mean for Delta Pesos? Will it turn into pounds?

Delta and Virgin Atlantic customers will be able to earn and redeem miles across Delta's SkyMiles and Virgin Atlantic's FlyingClub frequent flyer programs. Premium customers also will have reciprocal access to the Delta Sky Club and Virgin Atlantic Clubhouse airport lounges. Full details will be announced as services become available.

http://news.delta.com/index.php?s=43&item=1822

SFO777

http://www.chicagotribune.com/busine...,3385697.story

stevekstevek

Wow.

Not clear but I assume this also means joining skyteam? No news yet on Branson's 51% stake?

Dieuwer

Double post, I was first!

mtkeller

I suspect SkyTeam may be part of the deal, but not necessarily. VA has showed no movement toward ST despite their JV with DL on US-Oz routes. (Of course DL doesn't own 49% of VA either.) It's not like DL gets to decide on SkyTeam membership on their own

planecrazy63

Now to see what this means for SkyMiles redemptions on Virgin Atlantic. The best part for Delta of course is the metal neutral access to LHR in the JV (pending approval of course). This will mean better utilization of both Delta and Virgin Atlantic's fleet (even if a flight or two get cancelled NYC-LHR because of overlap). It will also lead to the possibility of expansion to other markets based on freeing up aircraft utilization from the JV. IMO great use of 360 million by Delta.

DLCorpGal

All,

We want you to be some of the first to know we have just announced plans to form a joint venture with Virgin Atlantic Airways meant to strengthen our position across the Atlantic, especially in New York. We are investing $360 million to acquire a 49 percent stake in Virgin Atlantic, which will include three seats on their board of directors.

This joint venture will offer a combined trans-Atlantic network between the United Kingdom and North America with 31 peak-day round-trip flights; enhanced benefits for customers including cooperating on service between New York and London, with a combined total of nine daily round-trip flights from Heathrow to JFK and Newark; reciprocal frequent flyer benefits and shared access to Delta Sky Club and Virgin Atlantic Clubhouse airport lounges for elite passengers (more details coming soon).

Our next step is to apply for antitrust immunity with the U.S. DOT and undergo review by the U.S. Department of Justice and the EU’s competition regulators and other relevant authorities. We expect the share purchase and the joint venture to be implemented by the end of 2013.

We will work to keep you informed each step of the way. Please view the full release here http://news.delta.com/index.php?s=43&item=1822

Thanks,

DLCorpGalNYC

Dieuwer

The $360M sounds like a bargain to me for instantly becoming the #2 in LHR.

stevej0531

Delta Air Lines Inc. DAL +0.30%agreed to buy a 49% stake in Virgin Atlantic Airways Ltd. for $360 million, a deal that will boost the U.S. carrier's presence at London's congested Heathrow Airport and continue a run of cut-price deals to expand its network.

The No. 2 U.S. carrier by traffic acquired the stake from Singapore Airlines Ltd. C6L.SG +0.66%Virgin Group and founder Richard Branson will retain the majority 51% stake and Virgin Atlantic Airways will retain its brand and operating certificate, the companies said in a statement Tuesday.

Delta is already the largest U.S. carrier by traffic on routes to Europe and Asia, but it trails rivals AMR Corp.'s AAMRQ +0.17%American Airlines and United Continental Holdings Inc. UAL +1.85%on services to Heathrow, the world's busiest international hub and a rich source of premium business driven by the city's financial-services sector.

Virgin is the third-largest airline at Heathrow, where takeoff and landing slots suitable for trans-Atlantic flights are a highly prized commodity as the airport is running at full capacity. Continental Airlines, a predecessor of United Continental Holdings, in 2007 paid $209 million for just four daily pairs of slots at Heathrow. Virgin controls enough slots to operate 304 flights a week.

Singapore Airlines paid £600 million ($962 million) for its Virgin stake in 1999, though it didn't pursue integration with the U.K. carrier.

Rival British Airways , IAG.MC +0.43%part of International Consolidated Airlines Group SA, controls almost 50% of the slots at Heathrow and is the dominant player on flights to the U.S., operated in partnership with American Airlines in a joint venture that enjoys the same antitrust immunity Delta is expected to pursue with Virgin.

Delta passengers would be able to connect to Virgin's long-haul routes out of London and take advantage of some new domestic short-haul flights the U.K. carrier plans to add next year.

Atlanta-based Delta had more than $5 billion in cash at Sept. 30 and has been innovative in deploying resources. It bought an oil refinery to smooth volatility in jet-fuel prices, continues to buy or lease older, used aircraft it can park if demand declines and picked up minority stakes in two Latin American carriers—Aeroméxico and Brazil's Gol—to boost its presence in the region

dd1612

At $360 million this is a real good bargain for Delta.

Virgin Atlantic opens up another TATL option to a lot of flyers, like me, as I could now travel USA-UK-INDIA seamlessly.

I have never used Virgin in the past, as I considered it a waste of EQMs and RDMs.