Delta considering bid for Avianca
Jun 2, 2016, 10:40 pm
#1
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Delta considering bid for Avianca
According to the WSJ (click via google to avoid paywall):https://www.google.com/webhp?sourcei...fe=off&tbm=nws
This would be a master move by DL to ensure competitiveness in all of Latin America's most important markets. Along with their stake and proposed JV in Aeromexico, as well as Gol stake and partnership, this would be the missing link to ensure strength in Colombia, Peru, Central America, etc. Hope this actually materializes...
This would be a master move by DL to ensure competitiveness in all of Latin America's most important markets. Along with their stake and proposed JV in Aeromexico, as well as Gol stake and partnership, this would be the missing link to ensure strength in Colombia, Peru, Central America, etc. Hope this actually materializes...
Jun 2, 2016, 11:07 pm
#2
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I don't think its happening anytime soon. Last time they left from Delta over years ago. They went to United. We don't want to see Avanica to coming back at Delta. It won't happen in a distant future.
Jun 3, 2016, 7:13 am
#3
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A little bit different set of circumstances here; once upon a time, Delta had a code-share, marketing and frequent flyer program tie-in with Avianca that went south. Here, Delta would be acquiring an entire airline organization. Also, Avianca is much larger than it once was, because it acquired TACA, the Central American airline with hubs at SJO and SAL. Avianca also has subsidiaries or affiliates in Guatemala, Honduras, Brazil, Ecuador and Peru.
I think United/Continental still has an ownership stake in Copa, the Panamanian flag carrier. Copa flies routes up and down South America as well as throughout Central America from its PTY hub.
Of course, the new LATAM, which appears to operate both domestic and international routes in almost every country in South America, is a key player in One World.
Therefore, Delta controlling Avianca (to the extent it can under Colombian law) makes a lot of sense, particularly in light of their proposed acquisition of a total of 49% of the stock of Aeromexico.
I think United/Continental still has an ownership stake in Copa, the Panamanian flag carrier. Copa flies routes up and down South America as well as throughout Central America from its PTY hub.
Of course, the new LATAM, which appears to operate both domestic and international routes in almost every country in South America, is a key player in One World.
Therefore, Delta controlling Avianca (to the extent it can under Colombian law) makes a lot of sense, particularly in light of their proposed acquisition of a total of 49% of the stock of Aeromexico.
Jun 3, 2016, 8:11 am
#5
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A little bit different set of circumstances here; once upon a time, Delta had a code-share, marketing and frequent flyer program tie-in with Avianca that went south. Here, Delta would be acquiring an entire airline organization. Also, Avianca is much larger than it once was, because it acquired TACA, the Central American airline with hubs at SJO and SAL. Avianca also has subsidiaries or affiliates in Guatemala, Honduras, Brazil, Ecuador and Peru.
I think United/Continental still has an ownership stake in Copa, the Panamanian flag carrier. Copa flies routes up and down South America as well as throughout Central America from its PTY hub.
Of course, the new LATAM, which appears to operate both domestic and international routes in almost every country in South America, is a key player in One World.
Therefore, Delta controlling Avianca (to the extent it can under Colombian law) makes a lot of sense, particularly in light of their proposed acquisition of a total of 49% of the stock of Aeromexico.
I think United/Continental still has an ownership stake in Copa, the Panamanian flag carrier. Copa flies routes up and down South America as well as throughout Central America from its PTY hub.
Of course, the new LATAM, which appears to operate both domestic and international routes in almost every country in South America, is a key player in One World.
Therefore, Delta controlling Avianca (to the extent it can under Colombian law) makes a lot of sense, particularly in light of their proposed acquisition of a total of 49% of the stock of Aeromexico.
Jun 3, 2016, 9:29 am
#6
Join Date: Jan 2007
Posts: 5,679
I'm flying Avanica next month with connections from AA. DL continues to be very weak in South America. Whenever I price out F/J they are laughably out of touch with their competitors prices.
In terms of AV the only thing I noted was my travel agent had access to consolidator fares I couldn't find in the usual channels. It appears Spanish/Portuguese centric TAs are still quite strong down there.
In terms of AV the only thing I noted was my travel agent had access to consolidator fares I couldn't find in the usual channels. It appears Spanish/Portuguese centric TAs are still quite strong down there.
Jun 3, 2016, 10:06 am
#7
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Indeed Colombia has no foreign ownership limitation for it airlines.
Also, United Continental no longer owns any of Copa (although they still codeshare a lot) so we may see a bidding war between Delta and United.
That said, I believe Delta needs this acquisition more - Avianca is the largest airline group in South America after Latam and opportunities likes this don't arise very often.
Also, United Continental no longer owns any of Copa (although they still codeshare a lot) so we may see a bidding war between Delta and United.
That said, I believe Delta needs this acquisition more - Avianca is the largest airline group in South America after Latam and opportunities likes this don't arise very often.
Jun 3, 2016, 10:10 am
#8
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A SkyTeam/partner alternative to AR (Aerolinas Argentinas) would be nice.
Jun 9, 2016, 2:45 pm
#10
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I've just been told DL is stopping Medellin service after Nov. 5, and they've rebooked me on an AV flight from MIA. This is probably just a normal process, but she called it a "partner" airline.
Those flights have been full, though the front occasionally didn't fill up. I wonder if this change in routing strategy involves AV in any way?
Meanwhile, AV is offering some juicy sale fares, if I can just figure out my travel plans. Maybe it's time to go for some status on AV, rather than just buying my Lifemiles for award tickets?
Those flights have been full, though the front occasionally didn't fill up. I wonder if this change in routing strategy involves AV in any way?
Meanwhile, AV is offering some juicy sale fares, if I can just figure out my travel plans. Maybe it's time to go for some status on AV, rather than just buying my Lifemiles for award tickets?
Nov 2, 2016, 4:19 pm
#11
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Looks like Delta will be making a bid by November 9th (within the week) according to Bloomberg: http://www.bloomberg.com/news/articl...-meets-suitors
Delta, United Said to Near Avianca Bids Amid Elliott Talks
Avianca Holdings SA is studying options including the sale of a controlling stake and is set to receive bids next week from suitors including Delta Air Lines Inc. and United Continental Holdings Inc., people familiar with the matter said.
The offers, due by Nov. 9, may include about $500 million in new capital for Bogota-based Avianca, plus a purchase of common stock from current shareholders, said the people, who asked not to be named because the talks are private. Copa Holdings SA also is expected to present a bid.
Avianca Holdings SA is studying options including the sale of a controlling stake and is set to receive bids next week from suitors including Delta Air Lines Inc. and United Continental Holdings Inc., people familiar with the matter said.
The offers, due by Nov. 9, may include about $500 million in new capital for Bogota-based Avianca, plus a purchase of common stock from current shareholders, said the people, who asked not to be named because the talks are private. Copa Holdings SA also is expected to present a bid.
Nov 2, 2016, 4:40 pm
#12
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Looks like Delta will be making a bid by November 9th (within the week) according to Bloomberg: http://www.bloomberg.com/news/articl...-meets-suitors
Nov 2, 2016, 4:50 pm
#13
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Nov 2, 2016, 5:22 pm
#14
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*A is too though. I'd be shocked if Copa and/or UA don't win this - especially if they decide to make a joint bid. *A would be in a tough spot for SA if they lost Avianca.
Nov 2, 2016, 6:00 pm
#15
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However, after flying AR a couple years ago, it would be nice to have some other SkyTeam carrier in South America. AR is the worst airline I've ever flown. Granted I've only flown a dozen airlines (excluding US regional carriers), but they were still pretty miserable.