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Old May 16, 2006 | 8:20 am
  #31  
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Originally Posted by Traveloguy
No, the Virgin Group says who can use the Virgin brand. SQ only own half of VS which does not mean they state who can use the Virgin brand etc. That is very much Branson's baby and in effect why he is worth as much as he is.
so if Branson got the s$%ts with SQ he could theorectially start another VS and fly on the same routes as VS does now...
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Old May 16, 2006 | 9:57 am
  #32  
 
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Originally Posted by bensyd
so if Branson got the s$%ts with SQ he could theorectially start another VS and fly on the same routes as VS does now...
Theoretically, although I suspect SQ would have put in their contract a clause prohibiting him from competing with directly with them whilst the two are in partnership. There may of course be a sunset clause, but I think we are perhaps speculating too much now (in true OT FT style! ). Having said that, I suspect there could quite equally be a sunset clause in regards to the use of the Virgin brand.

SQ only have part ownership of VS and I don't believe this extends to any of his other airline adventures.

I also can't see Branson getting out of VS and remember he still owns the 51% controlling share. When he got rid of most of his assets over recent years, VS has remained under his control. But there are countless examples where he has sold off companies and given them rights to continue using the Virgin brand with a royalties fee attached.
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Old May 16, 2006 | 2:21 pm
  #33  
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Originally Posted by mrkz
This is so true: just look at the many FF tiers (PPS I mean) accessible only to those who fly on SQ metal.... and their 'on-the-side' tie-ups with non-Star airlines like Virgin Atlantic
How do you figure this? Every *A FFP has partnerships with other airlines, sometimes even airlines in competing alliances.

Many (perhaps not all) *A FFPs have their own top tier status that is available only to those who travel the most on their own metal - eg LH HON Circle, UA Global Services, NZ Gold Elite, etc.
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Old May 16, 2006 | 4:42 pm
  #34  
 
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Originally Posted by Kiwi Flyer
How do you figure this? Every *A FFP has partnerships with other airlines, sometimes even airlines in competing alliances.

Many (perhaps not all) *A FFPs have their own top tier status that is available only to those who travel the most on their own metal - eg LH HON Circle, UA Global Services, NZ Gold Elite, etc.
Isn't UA GS invite only, i.e. BA Premier, QF CL etc?
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Old May 16, 2006 | 10:16 pm
  #35  
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Originally Posted by Traveloguy
Theoretically, although I suspect SQ would have put in their contract a clause prohibiting him from competing with directly with them whilst the two are in partnership. There may of course be a sunset clause, but I think we are perhaps speculating too much now (in true OT FT style! ). Having said that, I suspect there could quite equally be a sunset clause in regards to the use of the Virgin brand.

SQ only have part ownership of VS and I don't believe this extends to any of his other airline adventures.

I also can't see Branson getting out of VS and remember he still owns the 51% controlling share. When he got rid of most of his assets over recent years, VS has remained under his control. But there are countless examples where he has sold off companies and given them rights to continue using the Virgin brand with a royalties fee attached.
I find it very hard to believe that Branson has the effective ability to sell out of VS and start his own rival Virgin Atlantic and SQ is impotent in preventing it from happening. As an example Branson decides he wants his airline to start flying LHR-SIN, whats to stop him going out buying a plane and giving it all the Virgin hoopla and competing with SQ. It seems a very poor way to run a business when your biggest asset, your brand, is under the complete control of someone other than the company itself, even if he is a majority shareholder. I would certainly like to find out what the arrangement is though.
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Old May 16, 2006 | 10:40 pm
  #36  
 
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Originally Posted by Traveloguy
No, the Virgin Group says who can use the Virgin brand. SQ only own half of VS which does not mean they state who can use the Virgin brand etc. That is very much Branson's baby and in effect why he is worth as much as he is.

Very true. Branson does own the rights to the Virgin name. As stated most of Virgin businesses pay a royalty to use the name but Branson himself has no input in running the companies. Virgin Management owns the rights to the Virgin Brand and Virgin Atlantic is still part owned by Richard.
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Old May 16, 2006 | 10:46 pm
  #37  
 
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Originally Posted by bensyd
I find it very hard to believe that Branson has the effective ability to sell out of VS and start his own rival Virgin Atlantic and SQ is impotent in preventing it from happening. As an example Branson decides he wants his airline to start flying LHR-SIN, whats to stop him going out buying a plane and giving it all the Virgin hoopla and competing with SQ. It seems a very poor way to run a business when your biggest asset, your brand, is under the complete control of someone other than the company itself, even if he is a majority shareholder. I would certainly like to find out what the arrangement is though.

VS is Bransons Baby! He had to sell Virgin Records to keep VS afloat during the "Dirty Tricks" campaign by BA. I am 90% sure Branson still holds the balance of power with VS. It would be a huge move for Branson to sell out of VS and I dont see that happening
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Old May 16, 2006 | 11:02 pm
  #38  
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Originally Posted by hobarthoney
VS is Bransons Baby! He had to sell Virgin Records to keep VS afloat during the "Dirty Tricks" campaign by BA. I am 90% sure Branson still holds the balance of power with VS. It would be a huge move for Branson to sell out of VS and I dont see that happening
SQ own 49% of VS, So their must be some sort of contract that says they cant fly competing routes with SQ, although they have a code-share with SQ. I'm not suggesting Branson sells out of VS I am saying though that their is nothing to prevent Branson lending the Virgin name to another airline that could fly competing routes to SQ, and if that is the case then it is fairly poor due diligence on SQ's part.
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Old May 16, 2006 | 11:21 pm
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Originally Posted by bensyd
SQ own 49% of VS, So their must be some sort of contract that says they cant fly competing routes with SQ, although they have a code-share with SQ. I'm not suggesting Branson sells out of VS I am saying though that their is nothing to prevent Branson lending the Virgin name to another airline that could fly competing routes to SQ, and if that is the case then it is fairly poor due diligence on SQ's part.
You dont give the lawyers of SQ much credit! I am sure there would be a signed contract stating that Branson could not sell up and start a competing carrier. Also I very much doubt Branson selling up his major Virgin assets and his favorite asset at that to start up a carrier competing against SQ. Would it last any longer than OZJET? I doubt it, but we will never know as this will never happen
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Old May 18, 2006 | 3:11 am
  #40  
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Originally Posted by hobarthoney
You dont give the lawyers of SQ much credit! I am sure there would be a signed contract stating that Branson could not sell up and start a competing carrier. Also I very much doubt Branson selling up his major Virgin assets and his favorite asset at that to start up a carrier competing against SQ. Would it last any longer than OZJET? I doubt it, but we will never know as this will never happen
Which is the reason why I said originally that SQ must have some say in the Virgin brand when it comes to airlines.

I didnt say Branson needed to sell his stake in VS I just said he could start a rival airline that competes under the Virgin brand on SQ routes, which according to traveloguy's original statement would be quite reasonable given that he controls the brand Virgin.
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Old May 25, 2006 | 8:15 am
  #41  
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Originally Posted by rrgg
Who wants to waste cash painting a stupid logo?
All OW should scrape the paint like the CX cargo=)
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