jdrtravel

I think people are underestimating the value of SFO slots in this thread. Delta's operation here pales compared to UA and AA. San Francisco has one of the strongest economies in the world right now, and Delta is missing out.

readywhenyouare

SFO is not slot controlled. Delta could start any flights it wanted. It would be very stupid going against UA though.

FireEmblemPride

DL buys VX, turns SFO into a focus city, perhaps a hub, then brings back SFO-NRT

ashill

Fair enough, although that merger wasn't in the last decade (the timeframe the post I was replying to referred to). More substantively, at that time, there were still enough legacies around that a merger, particularly of two small players even for the time, didn't threaten to substantially reduce competition in the way it would now, so the HP/US merger really isn't a useful analogy to antitrust concerns about any merger involving today's WN, AA, DL, or UA.

ssk1127

Beyond federal regulatory approval, the main question in my mind is whether VX travelers would stick with DL post-merger. Perhaps DL could craft an onboard Virgin branding/experience that might come into play in retaining the customer base VX has built, especially in transcon markets and millenial-heavy tech cities - AUS, SFO, etc. The VX crowd might just view DL as another boring legacy and move their business elsewhere. If they don't feel they can retain the customer base, the other assets aren't worth it for DL.

On a tangent, I would personally love for DL to be able to move its SFO operations into Terminal 2 if they do buy VX. It's a beautiful space, especially compared to the cramped quarters in DL's current location there.

Fanjet

So DL buys VX to make SFO a hub? Why? To sabotage their own project at SEA?

Delta would have to give up a lot in such a purchase. Gates and slots at restricted airports. Because the DoJ would want those assets to go to a smaller carrier which has limited access to those. And not to remain in the hands of an even larger domestic carrier.

Like I said, purchasing VX is a pretty cost-ineffective way to obtain two gates at DAL (for flights which would probably just go to their hub airports) and some additional A320s.

tvnwz

Buying VX won't "substantially" reduce competition. Too small. Not all that competitive. Struggling.

SJC ORD LDR

I really like the new SkyClub in the C concourse, though I usually go to D if I want to eat some decent food or get a salad to go at Napa Farms. At least one can walk from C to D behind security. Plus, the only lounge in D is the Admirals Club, which I heard is quite nice.

If VX is gone, there is no real strong carrier to take their place. Almost all of these routes are flown by UA anyway and they made a conscious decision to avoid UA. The only "hip" airline left would be B6 and they are making their product more unhip with less legroom.
The A320s are leased. So, a buyer would just get the lease. I could see DL purchasing just the DAL gates and then B6 or another investor buying the remainder of VX. While I think SFO is a much better location for Asian operations than SEA, UA is already firmly entrenched at SFO.

Pi7473000

I hope not! Delta service is awful compared to Virgin America!! The service on VA is friendly, modern and reasonable. Delta service is dated and unfriendly! It would be a shame to see a great airline taken over by one that needs so much improvement.

KDCAflyer

Coming from someone who appears to fly UA frequently.

readywhenyouare

Interesting, I've heard the opposite about VX. The Virgin group is well known to be a snotty group of people who think they are better than everyone else. Look no further than their cult leader, uh I mean founder, Richard Branson. For the most part Delta inflight service is very good.

SJC ORD LDR

I've flown VX twice and there service was fine. I wouldn't say it's the best experience I've ever had. OTOH, they do not offer a free snack to people in Y, so for me that makes them not as desirable as a B6 or DL or WN, which have always offered free snacks in Y. No other airline in the US offers the hip vibe like VX, but I really don't need that. DL does the trick for me.

The biggest thing I liked about VX was their first class food. It was pretty tasty.

DA201

Yes, this is true. But it still gives customers less choice and eliminates another competitor against the big four. It also gives DL the potential to be way too big. If this merger were to theoretically happen, DL would now have solid hubs at three of the most important west coast cities (LAX, SFO, SEA), and could potentially dominate the west coast.

Also remember that AA/US almost didn't happen. And a big reason it did happen was because AA was a mess that was in bankruptcy and needed to be fixed. Neither VX or DL are bankrupt or in a dire situation

jdrtravel

Seriously? I have never flown VX, but Delta typically has fantastic, award winning service. It might not be like a nasty Las Vegas club, but some of us are actually OK with that.

SJC ORD LDR

According to some unnamed source, AS and B6 are the interested bidders. Still wonder if DL will be able to get those DAL gates they have wanted.