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-   Delta Air Lines | SkyMiles (https://www.flyertalk.com/forum/delta-air-lines-skymiles-665/)
-   -   DL to buy VX? (https://www.flyertalk.com/forum/delta-air-lines-skymiles/1755022-dl-buy-vx.html)

rylan Apr 4, 2016 9:54 am

Good for Alaska. Maybe they'll be able to compete with and push back against the 'big 3' oligopoly.

us2 Apr 4, 2016 10:39 am

:mad:

Originally Posted by rylan (Post 26434418)
Good for Alaska. Maybe they'll be able to compete with and push back against the 'big 3' oligopoly.

I think you mean "big 4". Southwest is as much a part of the oligopoly as UA, DL and AA. Together, the four carriers control about 80% of domestic traffic.

StayingHomeIsBetter Apr 4, 2016 11:32 am

Details at

http://www.foxbusiness.com/markets/2...n-america.html

CKDGM Apr 4, 2016 1:52 pm

Fingers crossed that the AS/VX merger causes DL to bring back the 2xMQM deals for SEA-based customers. (Maybe also SFO/LAX? Who knows?)

DiverDave Apr 4, 2016 2:21 pm


Originally Posted by jiburi (Post 26434338)
So now that Alaska purchase of Virgin seem a done deal, I wonder if this will finally unravel final AS/DL partnership change: termination.

Why would it - AS will be busily digesting their new acquisition for several years to come.

Besides, keeping a partial relationship with DL is a good way for AS to keep Mr. Parker honest.

David

Mountain Explorer Apr 4, 2016 2:33 pm


Originally Posted by DiverDave (Post 26436004)
Why would it - AS will be busily digesting their new acquisition for several years to come.

Besides, keeping a partial relationship with DL is a good way for AS to keep Mr. Parker honest.

David

I think the competition on the premium transcon routes will a source of tension

formeraa Apr 4, 2016 2:59 pm


Originally Posted by kjnangre (Post 26436077)
I think the competition on the premium transcon routes will a source of tension

Assuming of course that AS keeps those routes.

cestmoi123 Apr 4, 2016 3:50 pm


Originally Posted by GRALISTAIR (Post 26403012)
Agreed but I was thinking for different reasons. VS and VX are different companies but they are sort of related. With DL owning 49% of VS it may get interesting. :)

As far as I know, the only connection between VX and VS is Branson himself. There's no corporate link.

Mountain Explorer Apr 4, 2016 6:24 pm


Originally Posted by formeraa (Post 26436229)
Assuming of course that AS keeps those routes.

Those routes are the very heart of VX's network. In my mind, if AS didn't want these routes, it wouldn't have bought VX. Just my 2 cents.

pbarnette Apr 4, 2016 6:36 pm


Originally Posted by formeraa (Post 26436229)
Assuming of course that AS keeps those routes.

And assuming that they retain the premium product. With the VX product having fallen pretty far behind at this point, I'm curious whether AS chooses to invest in it, retain it at a discount, or abandons the premium market altogether. They've never offered a product like VX's front cabin, so I'm curious what they would do with it. Indeed, I'm curious what they will do with the back of the bus too. AS has always had a, shall we say, spartan approach to fitting their aircraft, while VX went completely the other way.

I get why AS would want to increase their heft at SFO and elsewhere. I get that they take out a competitor. But the product is just so different and I wonder if they are going to pay $4bn for a handful of gates and some slots at JFK. Because I sure don't see VX customers being enthused about the AS product.

sdadept Apr 4, 2016 6:41 pm


Originally Posted by SJC ORD LDR (Post 26377585)
There are some stories about VX receiving an offer to sell itself and DL is listed as a potential suitor.

http://www.bloomberg.com/news/articl...iving-interest

I don't see what DL would do with the operations in SFO and they would most likely have to divest some slots in NY if this went through. But, I'm pretty sure that DL would like to get those two gates at DAL.

with what has been happening to airfares lately (sky high on non compete routes which are now more numerous with the consolidation), I dont see the justice department green lighting this at all.

Mountain Explorer Apr 4, 2016 6:49 pm


Originally Posted by sdadept (Post 26437259)
with what has been happening to airfares lately (sky high on non compete routes which are now more numerous with the consolidation), I dont see the justice department green lighting this at all.

One strong airline is much better positioned to compete with the 4 giants in the industry than 2 weak airlines.

It would actually DECREASE competition if the government allowed each of the giants to have a merger, then denied that same thing to the smaller airlines.

I believe this merger will be approved in less time than it took me to write this reply.

readywhenyouare Apr 4, 2016 7:11 pm


Originally Posted by cestmoi123 (Post 26436542)
As far as I know, the only connection between VX and VS is Branson himself. There's no corporate link.

And to add to that, Branson was never allowed to have a controlling vote in VX. So it didn't matter what Branson had in mind for VX, there was nothing he could do about it.

Alaska is one of the best airlines in the world and I have no doubt they will do very well with the acquisition of VX.

yohanson Apr 4, 2016 8:12 pm

I hope the merger helps out the FF through more competition.

kop84 Apr 5, 2016 7:32 am

I highly doubt DOJ will block the acquisition.

Not sure, but I'm willing to bet that pre-merger NW, DL, CO, UA, AA, US, WN were all bigger than even a combined AS/VX would be.

Also not sure what AS will do with the leased airbus planes, t-con routes, 2 gates at DAL, and a revenue based FF program. It will be interesting to see how AS handles all of these things as well as integration of the work forces, systems, schedules, etc.

I know why AS is making the purchase, but I wonder if they'll lose some of their sterling reputation they've kept as they haven't had any merger pains while most of their competition has.


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