DL to buy VX?
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. |
It would probably be worth it to DL if they can gain even a couple of more Transcon slots for JFK/SFO-LAX plus the DAL gates, even if everything else had to be divested.
Plus it eliminates a competitor on SEA-LAX/SFO So realistically even if DL bought VX, re-did the planes with DL livery and didn't keep any of slots besides the DAL gates I think DL would do it if the price was right. Plus DL has a strong relationship with RB already. |
As one who recently decamped from SFO to MSP and travels back regularly, I selfishly love this idea. However, I'm not sure if much from the legacy VX product would survive. It's also not a given that DL would retain SFO as a hub, given how few monopoly routes VX has and the proximity of DL's existing LAX and SEA gateways.
VX+B6 would make sense, as (again selfishly) I'd love to see either carrier consider trying MSP and other flyover business destinations as spokes when the combined company achieves economies of scale. |
I think DL would prefer to codeshare with VX rather than buy them. Honestly, wouldn't be surprised if DL tried to get VX to replace Alaska once Alaska leaves the DL agreement (it will eventually happen if DL keeps building up Seattle). VX's customers love the airline for its amenities and superior product, and could easily leave and head to UA if DL took over.
I think B6 would most likely buy VX. B6 is very big in the Northeast and Florida/Caribbean. They are pretty small outside those areas except for a small base at LGB. They are also run in similar ways, have similar groups of loyal customers, and operate the same type of aircraft (B6 has A320s, A321s, and E190s and VX has A319s, A320s, and soon A321s). |
They are discussing this topic on A.net as well.
The article says "possible" buyers could be Delta, not that there is any proof Delta has shown interest in buying Virgin America. I also think DL would have a tough time getting the government to ok this type of deal. AS, NK or B6 would have a better chance, but AS probably doesn't want s bunch of Airbus. In another article I read Virgin was looking at more of selling off a majority chunk of ownership, not necessarily a buyout from another airline. In addition to DAL, DL would gain some valuable slots at DCA which would help since DL lost so many in the US LGA slot swap. |
Originally Posted by DCAproducer
(Post 26377937)
They are discussing this topic on A.net as well.
The article says "possible" buyers could be Delta, not that there is any proof Delta has shown interest in buying Virgin America. I also think DL would have a tough time getting the government to ok this type of deal. AS, NK or B6 would have a better chance, but AS probably doesn't want s bunch of Airbus. In another article I read Virgin was looking at more of selling off a majority chunk of ownership, not necessarily a buyout from another airline. In addition to DAL, DL would gain some valuable slots at DCA which would help since DL lost so many in the US LGA slot swap. NK would be be an odd pairing. VX and NK are total opposites in terms of on board services. I don't see many VX customers happy with flying NK instead. AS would want to ditch the Airbus fleet ASAP, which would negate any reason to buy VX. I think DL is mentioned because of the JV with VA and VS and the 49% stake in VS. Sir Richard Branson and RA are quite familiar with each other as we all know. |
DL buying VX wouldn't make much sense IMO, and I would honestly want the DOT to block in on the grounds of damaging competition. A B6 acquisition would make a lot more sense, and wouldn't be anti-competetive.
|
Originally Posted by SJC ORD LDR
(Post 26378004)
I can see the B6 rumors because they have little overlap. OTOH, they both do a terrible job at covering anything outside of the coasts.
NK would be be an odd pairing. VX and NK are total opposites in terms of on board services. I don't see many VX customers happy with flying NK instead. AS would want to ditch the Airbus fleet ASAP, which would negate any reason to buy VX. I think DL is mentioned because of the JV with VA and VS and the 49% stake in VS. Sir Richard Branson and RA are quite familiar with each other as we all know. I think DL would give up 75% of the slots that VX has other than DAL. They could essentially: A:eliminate a competitor B: prevent another competitor from getting stronger C: secure DAL without relying on the courts D: get some newer planes to retire some older less efficient planes. E: Strengthen ties with the rest of the Virgin Brand. F: Have the option of keeping the VX Brand under DL ownership |
Originally Posted by WWads
(Post 26378092)
DL buying VX wouldn't make much sense IMO, and I would honestly want the DOT to block in on the grounds of damaging competition. A B6 acquisition would make a lot more sense, and wouldn't be anti-competetive.
|
Originally Posted by SJC ORD LDR
(Post 26378134)
I can't see DL wanting more gates at SFO or to assume the leases on the A320 fleet. However, I can see DL wanting the gates at DAL and maybe the slots at DCA and NYC (not sure if that would get by the DOJ though).
Surely they're awake enough to block a merger like this that is so blatantly anti-competitive. Eliminating a competitor is pretty much the only significant gain that DL would get out of a VX acquisition. |
Originally Posted by SJC ORD LDR
(Post 26378004)
I can see the B6 rumors because they have little overlap.
|
Delta won't be merging with anyone. Not in my lifetime anyway (and I'm only in my 20's). Consolidation has been a nightmare for the consumer and DL,AA,UA,WN have seen the end of their merging days. The only other likely mergers that would be allowed are F9/NK and B6/VX.
|
The DoJ will not be allowing AA/UA/DL to purchase another carrier unless that carrier is on the verge of being disolved in bankruptcy. Period. But even if it were to happen, DL would have to give up too much in order to make it go through (like gates at compacted airports and slots at JFK). There are much cheaper ways for DL to obtain two gates at DAL and some more A320s, if that is their main objective.
File this rumor under A-Nut fantasy. |
Originally Posted by readywhenyouare
(Post 26378499)
Delta won't be merging with anyone. Not in my lifetime anyway (and I'm only in my 20's). Consolidation has been a nightmare for the consumer and DL,AA,UA,WN have seen the end of their merging days. The only other likely mergers that would be allowed are F9/NK and B6/VX.
Delta's JV with VS is a great example of how airline M&A can go very well, and I'd expect a deal with VX would be similarly structured (not an outright merger). |
Originally Posted by Fanjet
(Post 26379094)
The DoJ will not be allowing AA/UA/DL to purchase another carrier unless that carrier is on the verge of being disolved in bankruptcy. Period. But even if it were to happen, DL would have to give up too much in order to make it go through (like gates at compacted airports and slots at JFK). There are much cheaper ways for DL to obtain two gates at DAL and some more A320s, if that is their main objective.
File this rumor under A-Nut fantasy. David |
All times are GMT -6. The time now is 10:17 pm. |
This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.