Speculation: Would DL every buy KL (49%)?
May 15, 2015, 8:18 pm
#1
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Speculation: Would DL every buy KL (49%)?
Considering that Delta just got itself a nice piece of the terminal in AMS, would it be conceivable that if the opportunity presents itself DL would buy a piece of KL (just like VS)?
May 15, 2015, 8:21 pm
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I really doubt it. Too much uncertainty having to deal with the French National Sport of striking and uncertainty about meddling by vacillating French governments.
May 15, 2015, 8:22 pm
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May 15, 2015, 8:27 pm
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This management team is headed for trouble. You would think they would have learned their lesson from wholly owning ASA and Comair. It makes no sense for them to own such a large stake in Virgin Atlantic. DL needs to be focused on improving their own airline before they go investing in others.
May 15, 2015, 8:57 pm
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KLM by itself wouldn't be so bad, although DL showed in the merger that they didn't want to continue the nice cooperative arrangement that PMNW and KLM had enjoyed for years to their mutual benefits and to the benefit of passengers. The problem is that KLM is not independent of AF, which is frankly a hot mess, starting with union and strike issues (although KLM is not itself immune from strikes). Plus, I don't think KLM (or AF) employees would welcome even partially working for DL; there's too much of a union tradition and folks wouldn't welcome cost cuts.
May 16, 2015, 7:03 am
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KLM by itself wouldn't be so bad, although DL showed in the merger that they didn't want to continue the nice cooperative arrangement that PMNW and KLM had enjoyed for years to their mutual benefits and to the benefit of passengers. The problem is that KLM is not independent of AF, which is frankly a hot mess, starting with union and strike issues (although KLM is not itself immune from strikes). Plus, I don't think KLM (or AF) employees would welcome even partially working for DL; there's too much of a union tradition and folks wouldn't welcome cost cuts.
May 16, 2015, 7:40 am
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Not Gonna Happen
No. It is not about money, schedules, or unions, it is about national pride. Airline ownership is a European national pride thing. In the U.S. airlines are just commodities, but in Europe they are part of national identity.
May 16, 2015, 8:22 am
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Well, if AF/KL needed cash and DL had it, yes DL would buy an equity stake. The TATL JV is critical to their success and there is no way they could allow AF/KL to fail.
That being said, AF/KL are not splitting up and I don't think it would ever get to a situation where the options are either a DL cash infusion or failure.
That being said, AF/KL are not splitting up and I don't think it would ever get to a situation where the options are either a DL cash infusion or failure.
May 16, 2015, 8:24 am
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There was a time in the 1990s when NW saved KLM from going under, and their staff resented it. I don't remember what the terms were, it could have been a loan rather than a percentage stake in the company.
May 16, 2015, 8:39 am
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This management team is headed for trouble. You would think they would have learned their lesson from wholly owning ASA and Comair. It makes no sense for them to own such a large stake in Virgin Atlantic. DL needs to be focused on improving their own airline before they go investing in others.
Take a biz course, bro. I suspect – because unlike you, I don’t know – that the investment in VS was at least as much protective as proactive. And here’s breaking news… many airlines invest in others, far too many to mention here. Does that mean all of them are "headed for trouble?"
May 16, 2015, 8:44 am
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May 16, 2015, 9:23 am
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Yes.
The OP concerns himself with second-order speculation: if AFKL were to spin off KL, would DL buy it? That's the kind of stuff that concerns investment bankers dreaming of fees, and of a.net, where every question no ridiculous has an outlet. 'Why no JFK-Albania service?'
http://www.airliners.net/aviation-fo....main/6374979/
DL's interest in KL would be piqued to keep it out of some competitor's hands. DL already has the TATL JV with all AF, KL, AZ trans-Atlantic - it doesn't need 49% of the rest.
The OP concerns himself with second-order speculation: if AFKL were to spin off KL, would DL buy it? That's the kind of stuff that concerns investment bankers dreaming of fees, and of a.net, where every question no ridiculous has an outlet. 'Why no JFK-Albania service?'
http://www.airliners.net/aviation-fo....main/6374979/
DL's interest in KL would be piqued to keep it out of some competitor's hands. DL already has the TATL JV with all AF, KL, AZ trans-Atlantic - it doesn't need 49% of the rest.
May 16, 2015, 11:52 am
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I am sure you are correct that the DL mgmt team is headed for trouble. Never mind that they make more in one month than you will earn in a lifetime, you obviously know more than they do.
Take a biz course, bro. I suspect – because unlike you, I don’t know – that the investment in VS was at least as much protective as proactive. And here’s breaking news… many airlines invest in others, far too many to mention here. Does that mean all of them are "headed for trouble?"
Take a biz course, bro. I suspect – because unlike you, I don’t know – that the investment in VS was at least as much protective as proactive. And here’s breaking news… many airlines invest in others, far too many to mention here. Does that mean all of them are "headed for trouble?"
