DL to buy 10% of AFKL and AFKL to buy 31% of VS
#31
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Join Date: Apr 2011
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They weren't thought to be stupid in Zurich, either, but there's a precedent for a really bad outcome holding non-controlling stakes of multiple carriers.
In the 1990s Swissair initiated the controversial “Hunter Strategy”, a major expansion programme devised by the consulting firm McKinsey & Co. Using this strategy, Swissair aimed to grow its market share through the acquisition of small airlines rather than entering into alliance agreements. Swissair decided to acquire 49.5 percent of the very successful Italian charter airline Air Europe, the unprofitable Belgian flag carrier, Sabena, and significant stakes in the carriers Air Liberté, AOM, Air Littoral, Volare, LOT, Turkish Airlines, South African Airways, Portugalia and LTU...
https://en.wikipedia.org/wiki/Swissair#Hunter_Strategy
In the 1990s Swissair initiated the controversial “Hunter Strategy”, a major expansion programme devised by the consulting firm McKinsey & Co. Using this strategy, Swissair aimed to grow its market share through the acquisition of small airlines rather than entering into alliance agreements. Swissair decided to acquire 49.5 percent of the very successful Italian charter airline Air Europe, the unprofitable Belgian flag carrier, Sabena, and significant stakes in the carriers Air Liberté, AOM, Air Littoral, Volare, LOT, Turkish Airlines, South African Airways, Portugalia and LTU...
https://en.wikipedia.org/wiki/Swissair#Hunter_Strategy
#32
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FYI... the taxes on a xxx-HUB-yyy itinerary are the same whether you connect in LHR, CDG or AMS.
#33
Join Date: Dec 2014
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How do you figure? Delta's 10% stake in AF/KL wouldn't entitle Delta to control AF/KL's 31% voting rights in VS. Therefore, Virgin Group and AF/KL could outvote Delta with their collective 51% stake.
#35
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IMO not practical. There's no space. Remember AA flies put of T3 also, plus BA still has a few flights there. Even swapping them out, there'd not be enough room for all ST carriers. Until T3 is replaced I just don't see it happening. Plus most aren't going to want to double connect LHR and CDG/AMS anyway.
#36
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MSP to CPT via CDG or AMS Same dates of travel had different tax breakdowns on DL.com
https://tinyurl.com/y7gpucod
https://tinyurl.com/yav95lkv
#37
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Sir Richard's statement seemed to indicate that Virgin wanted more traffic from LHR to continental Europe and vice versa. That's interesting, if I'm right, because Virgin doesn't presently fly within Europe.
It also raises interesting questions about TATL long-haul flights. A couple years ago, it seemed like Delta really wanted us to fly Virgin (especially for award tickets) over Delta to London. I'm guessing that Virgin's operating costs are lower than Delta. Plus, is Virgin unionized like Air France? Air France always has strikes. I've never heard of a Virgin strike.
Regardless of Brexit (the UK isn't in Schengen now), I don't see why someone would fly from Europe to LHR on KLM/AF and then LHR to the US.
#38
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I suppose we could discuss long term hypotheticals around the third runway and terminal reconstruction, but otherwise TBH I don't really get the value add for AF or KL here, other than getting to be part of the DL/VS JV party. VS doesn't really add much to their network, other than less convenient routings to destinations that they mostly already serve.
(On a side note, I'd be happy with a daytime flight to Paris that connects to the last EU bank (and maybe even the Asian bank), but I get that's not really the point here...)
#39
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As for the connections from daylight flights... The times typically don't work. I think it is only possible to connect to a couple of European destinations from BA's daylight flights and I don't see why it would be different for VS.
#40
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For me, this is probably wonderful news, because I am a big fan of VS PE from JFK/IAD to LHR. Right now, the JV PE fares from US/Canada to Europe don't include VS, so even if I want to take the extra stop to hop LHR-CDG/ORY, or LHR-23 hour stopover-LCY-AMS, I can't use VS metal even on a DL ticket.
For business travelers, I don't think this makes much difference unless AF/DL gives VS an infusion to start flying short haul from MAN or something.
For business travelers, I don't think this makes much difference unless AF/DL gives VS an infusion to start flying short haul from MAN or something.
#41
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From a business perspective this makes total sense. I always wondered why no one had tried something like this (though I think this global partnership is what QR had in mind with AA given the tie-up with IAG).
The only thing missing is someone with a big Australia presence though perhaps we'll see VA come into this down the line
The only thing missing is someone with a big Australia presence though perhaps we'll see VA come into this down the line
#42
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VS Clubhouse is still a nicer lounge than AF or KL, but it has basically become a glorified restaurant with the latest renovations.
For me, this is probably wonderful news, because I am a big fan of VS PE from JFK/IAD to LHR. Right now, the JV PE fares from US/Canada to Europe don't include VS, so even if I want to take the extra stop to hop LHR-CDG/ORY, or LHR-23 hour stopover-LCY-AMS, I can't use VS metal even on a DL ticket.
How? I still don't understand what VS brings to AF and KL.
#43
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#44
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Air France losing their shares while buying other's shares.
Sounds like AF is hedging their bets and can't hack it on their own. Not surprising to me since I think they suck as an airline.
Sounds like AF is hedging their bets and can't hack it on their own. Not surprising to me since I think they suck as an airline.