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DL to buy 10% of AFKL and AFKL to buy 31% of VS

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DL to buy 10% of AFKL and AFKL to buy 31% of VS

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Old Jul 28, 2017, 8:17 am
  #61  
 
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Originally Posted by Grouchy
There are some rumors stating that 9W also might participate. In exchange they will sell a part of 9W to Delta. That's gonna be intresting since Etihad already owns 24% of 9W (and the max% allowed in foreign hands is 49%)
Are you talking about this?
http://economictimes.indiatimes.com/...w/59807311.cms
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Old Jul 28, 2017, 8:23 am
  #62  
 
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Originally Posted by ElmhurstNick
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.
This will make a huge difference for me on my business travel when DL is operating its winter schedule.

During the summer schedule, I often fly: CDG-SEA-AMS-CDG on DL. I do this routing because during the summer schedule SEA-AMS is 2x daily, and there is an evening departure option, which works out ideal for my schedule.

During the winter schedule, that isn't an option - AMS is 1x daily, and all the DL flights to Europe leave SEA by 1:30pm in the afternoon, which just sucks. DL used to have an evening departure to LHR (which was great), so I would use that during the winter months: CDG-SEA-LHR-CDG on DL/AF. But then DL handed the SEA-LHR route over to VS, which put a stop to it. Booking the following isn't currently possible with how the existing JV was setup:
DL CDG-SEA
VS SEA-LHR
AF LHR-CDG
(Oddly enough, it is available as an award routing, just not a revenue routing).

But now this new partnership should make that routing viable for me.
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Old Jul 29, 2017, 10:32 am
  #63  
 
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RE: Europe connections at LHR. One factor that many not be considering is for those who are stopping over at LHR and then continuing on to Europe a few days later.

I am in this situation for an upcoming trip, and wish that I did not have to purchase a separate BA ticket for that inter-Europe flight. I am guessing it is fairly common for both business and leisure travelers to have business in both London and someplace in continental Europe on the same trip, so it's not just about making a quick connection, it's also about the ability to book on one ticket with one program.
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Old Jul 29, 2017, 11:11 am
  #64  
 
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Originally Posted by irishguy28
AFKL's rationale for investing in VS, as presented in this morning's 1H2017 results presentation
It's kinda like, you got a really close friend but he's also best friends with someone you don't know much at all. With time, you'll either grow to dislike that guy or you'll also be good friends with that guy. AF/KL decided it makes more sense to also be good friends with VS.
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Old Jul 29, 2017, 12:59 pm
  #65  
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Originally Posted by WWads
That makes me think that AF/KL might move to T3. Indeed, if VS does join SkyTeam, I could see some sort of terminal swap that moves all SkyTeam carriers to T3.
I don't think T3 has capacity for that.

Originally Posted by pbarnette
It may not be worth it, but it seems clear that is what RB is envisioning.

FYI... the taxes on a xxx-HUB-yyy itinerary are the same whether you connect in LHR, CDG or AMS.
Not true, many countries impose taxes on connecting passengers. Not to mention the airport fees will be different.

Originally Posted by hockeyinsider
if I'm right, because Virgin doesn't presently fly within Europe.
You are right. VS tried to run some domestic flights in the UK for feed purposes for about a year, but they were not successful commercially. VS only flies long haul routes.

Originally Posted by hockeyinsider
Plus, is Virgin unionized like Air France? Air France always has strikes. I've never heard of a Virgin strike.
BALPA represents 85% of UK-based pilots so that almost certainly includes a few VS flight crew. Unite claims to represent some VS cabin crew. But VS staff are not unionized in a monolithic single union. Managing union relations is not that difficult in the UK if you are prepared to pay a fair wage.

Originally Posted by hockeyinsider
I don't see why someone would fly from Europe to LHR on KLM/AF and then LHR to the US.
People will crawl over broken glass to get a 2% saving.
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Old Jul 29, 2017, 1:30 pm
  #66  
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Originally Posted by Calchas
BALPA represents 85% of UK-based pilots so that almost certainly includes a few VS flight crew..
75% of the VS pilots that are union member are members of the Professional Pilots Union which is (currently) made up of only VS pilots
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Old Jul 29, 2017, 2:19 pm
  #67  
 
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Originally Posted by pbarnette
Actually, the biggest drag ons earnings lately has been Transavia and cargo. Transavia was brought in by KLM and the cargo albatross is on both parties.

But, regardless, whining about other divisions or "corporate" is as old as the corporation itself and I think folks are reading too much into normal office politics.
There's more to it than that because these aren't random corporations making pencils who merged. KLM and Air France both are national symbols for their respective countries and both have been owned by their governments in the past. The French, but not the Dutch, government still holds a significant share of the joint company.

The fact the joint company has a decidedly French slant to it is no doubt the reason why so much of the drama in these 'office politics' is reported giddily by the Dutch media. French industrial and economic policies are viewed with some suspicion in the rest of the EU as protectionist, and no doubt many Dutchmen feel that their hard work and thrift could be used to prop up a French workforce on cushy terms.
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Old Jul 29, 2017, 2:28 pm
  #68  
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Originally Posted by jdrtravel
RE: Europe connections at LHR. One factor that many not be considering is for those who are stopping over at LHR and then continuing on to Europe a few days later.

I am in this situation for an upcoming trip, and wish that I did not have to purchase a separate BA ticket for that inter-Europe flight. I am guessing it is fairly common for both business and leisure travelers to have business in both London and someplace in continental Europe on the same trip, so it's not just about making a quick connection, it's also about the ability to book on one ticket with one program.
You can already do this today, with the limitation that VS metal is excluded from US-LHR segments.
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Old Jul 29, 2017, 2:37 pm
  #69  
 
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Originally Posted by pvn
You can already do this today, with the limitation that VS metal is excluded from US-LHR segments.
Right, and this is a significant limitation, especially if you want to purchase PE like I do.
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Old Jul 29, 2017, 2:49 pm
  #70  
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Originally Posted by UKtravelbear
75% of the VS pilots that are union member are members of the Professional Pilots Union which is (currently) made up of only VS pilots
Interesting ^
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Old Jul 30, 2017, 8:35 am
  #71  
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Originally Posted by Ber2dca
It's kinda like, you got a really close friend but he's also best friends with someone you don't know much at all. With time, you'll either grow to dislike that guy or you'll also be good friends with that guy. AF/KL decided it makes more sense to also be good friends with VS.
That implies that AFKL didn't want to deal with VS. Except that Delta initially considered precisely this arrangement when they were investing in VS before deciding to cut AFKL out of the deal, who absolutely wanted a bigger slice of the UK-US market and have been trying since 2011 to get a share of VS.

Originally Posted by thisismoney.co.uk
Delta and Air France-KLM came close to a deal in February 2011 but discussions broke down over price and Branson's rights over the Virgin brand.
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Old Jul 30, 2017, 8:48 am
  #72  
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Originally Posted by Grouchy
There are some rumors stating that 9W also might participate. In exchange they will sell a part of 9W to Delta. That's gonna be intresting since Etihad already owns 24% of 9W (and the max% allowed in foreign hands is 49%)
India removed all foreign ownership restrictions on India-based airlines in June last year, so long as the government approves the shareholding.

Originally Posted by Reuters
The new measures allow 100 percent foreign ownership of India-based airlines, raising the limit from 49 percent, but only with prior approval from the government, according to a statement issued by Prime Minister Narendra Modi's office.
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Old Dec 2, 2019, 1:23 pm
  #73  
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Per Bloomberg, Richard Branson is pulling out of the deal. No impact to the JV but can't imagine DL is too pleased about this:

https://www.bloomberg.com/news/artic...irgin-atlantic

U.K. billionaire Richard Branson said he’s scrapping the planned sale of a stake in Virgin Atlantic Airways Ltd. in favor of retaining control and expanding the airline he founded. Branson has reached a deal to abandon a two-year-old plan to sell part of the airline to Air France-KLM Group and will hang on to the 31% stake, keeping a 51% holding overall, he said in a letter to staff posted on his personal blog Monday. The accord is “subject to contract,” he said.
IMO, seems short-sighted on Branson's part but then again this seems personal for him since I believe this is the last of his historical brands that he still has an ownership stake in

Last edited by Duke787; Dec 2, 2019 at 1:28 pm
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Old Dec 2, 2019, 1:36 pm
  #74  
 
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Originally Posted by Duke787


IMO, seems short-sighted on Branson's part but then again this seems personal for him since I believe this is the last of his historical brands that he still has an ownership stake in
Yeah, I agree. His empire has gradually crumbled and/or been sold off, so I bet pride has a lot to do with it. But, the airline has been performing well recently, so maybe he sees a potential for long-term profitability and wants to cash-in on it.

Personally, I'm in favor of this move. My recent VS experience was phenomenal, and I don't want Virgin to lose any of their unique-ness. I would be worried AF/KLM/DL combined will force VS to abandon a lot of their distinct product.
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Last edited by eneq; Dec 3, 2019 at 2:07 pm
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Old Dec 2, 2019, 2:14 pm
  #75  
 
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Originally Posted by eneq
Personally, I'm in favor of this move. My recent VS experience was phenomenal, and I don't want Virgin to lose any of their unique-ness. I would be worried AF/KLM/DL combined will force VS to abandon a lot of their distinct product.
Maybe its just me but the biggest change since the VS purchase has been to DL. It's almost as if various elements - JFK T4 and Seattle Skyclubs, branding and the D1 Suites - seem to feel like they handed design to VS.
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