Interesting Article from London Times on DL eyes VS
 

http://www.thesundaytimes.co.uk/sto/...cle1170291.ece

It appears that DL makes an offer to SQ for the VS stakes, TPAC JV between DL, KE, and SQ would be a fantastic coup :D.

Would certainly make a nice addition to the SkyTeam network, though I think some of my Virgin friends may be less than happy.

It would be nice to get VS back. Can you imagine to use the VS lounge @ LHR with your SM card :eek: 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.

It's got my vote. MIA-LON direct again.

Would LOVE to earn MQM or be able to redeem on SQ flights!

I loved redeeming on SQ right after the merger. Five RTs to Asia, although one technically was a RTW of sorts for the same mileage, all but one using IFC with the last in business class throughout. It was the best value for DL miles I ever expected to see. To make it better, DL had better award inventory than SQ gave to its *A partners.

It's a dream, but I would love to see SQ join SkyTeam or renew a partnership of some sort with DL.

????

+1 - Wouldn't this deal equal earning miles on VS?

For those who don't have a subscription to The Sunday Times, WSJ has also put out an article: http://online.wsj.com/article/SB1000...591702542.html

Would love to see this deal happen. Virgin Atlantic would be a great addition to SkyTeam (and it's about time another 4-star airline was added). Hope Branson decides to sell!

How 'bout for those of us who don't have a subscription to the Journal either? ;)

You should be able to view it by googling "Delta in Talks to Buy 49% Stake in Virgin Air." But it says nothing more than that they're talking... No details.

Between DL, KE and VS you mean. DL is buying the VS stake from SQ.

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.

Your search would have also revealed that AF buying part of Branson's stake in VS is also on the table.

Ok that would never happen. The JV makes flights metal neutral but also equally divides up the flying between the carriers. So no chance VS would get all the LHR-USA flights....sorry. However, I would bet that DL would be quick to drop BOS-LHR and possibly some others if this deal goes through. This would really help with the New York expansion too, DL/VS would be a real player vs AA/BA in the NYC-LHR market

Delta looking at buying Virgin Atlantic
 

As the other thread says, I think its more of a large stake in the company, under EU and US regs they cannot technically purchase the company outright.

IIRC SQ owns 49% and presumably this is what DL would buy.

Wonder if this is mostly so they can get some control over all that VA availability to Australia? I can picture the first board meeting now... Agenda item #1 is a nifty new award calendar for VS.

Does VS really do any intra-Europe flying? I was under the impression most all of the VS network involved long haul flights of which most DL already serves. I suppose DL is wanting VS to feed the Delta domestic network?

Would make LAX to LHR a better trip than KLM or AF. I'm in.

http://www.virgin-atlantic.com/conte...tions/original

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 brings access to LHR.

Considering AA is bringing 777-300ER to the JFK to LHR route, I am not at all surprised by this move.

Delta has only 767ER on the UK route and limited frequency and they obviously felt the UK market was ripe for growth and Delta and Virgin Atlantic are very complementary.

And Singapore can free up the cash to fund its own route expansion rather than relying on Virgin Atlantic. I see the real reason was to get permission for UK routes but none was given.

So it is a net benefit for Singapore who can do better on their invested capital in Virgin Atlantic and a net benefit for Delta airlines who gains a substantial UK partner.

Deal makes perfect sense and is a win for all parties.

http://www.telegraph.co.uk/finance/n...s-Branson.html

And the answer is obviously SkyTeam and I am assuming this deal will go through. It is a win-win.

So the rumors of VS joining ST are more credible. Interesting development.

:confused: What would buying a stake in Virgin Atlantic have to do with Virgin Australia availability? They're separate companies, and not even very close partners; VA's main partner to Europe is Etihad.

SQ does have a (recently-increased) equity share in Virgin Australia as well, but for the Australia-Asia market, so I doubt that would be affected by SQ backing out of VS.

Virgin Atlantic is starting its first intra-Europe services in the spring, three daily LHR-MAN flights. Not exactly a giant feed.

I would think this is all about the LHR O/D market. The AF/KLM/Alitalia joint venture covers smaller destinations in Europe that require a connection just fine, but connecting in CDG or AMS to get to LHR isn't exactly competitive.

VS announced a couple of weeks ago that they're starting routes to Scotland. BA had to divest some short-haul slots when they acquired BMI from LH.


http://www.bbc.co.uk/news/uk-scotlan...iness-20384801

And watch them move that hub west and south a bit. After all isn't ATL the center of the universe :)

SkyTeam was quite weak in the UK market before. Also T4 had the Virgin Atlantic Club at JFK which was shared with Singapore Airlines.

I will say that the UK market is super competitive and by an alliance with Delta, Virgin will be getting more connection traffic which it needed to sustain its business model.

Previously Delta had very limited flight frequencies with 767ER. Now Delta gets access to Virgin Atlantic.

Branson may be selling some too. The sale by both, at least in part, could come tied with SQ again partnering with DL.

They have their Indian destinations, in relation to one another, messed up on that map. :eek:

VS has been looking at creating a domestic UK CTA network of some limited sort to feed LHR flights.

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?

Yeah I misread it. Oh well.

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!

This.

LHR is the big price, and the TATL routes.
Also note that AF/KL still would have a monopoly on intra-European and North-Africa connections even if VS would join SkyTeam.

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!

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!

I can, but it's easier to imagine that wondeful lounge immediately being SCified and the fake cheese moving in.

wonder which firms are doing the M&A representation? (wish I was working on this deal!)