Boraxo

Gold is not going to "disappear" (at least if AS is the suitor - never flown B6 so I don't know anything about its FF program). AS takes very good care of its elites, and even offers status matches to other programs. So rest assured that VX elites would receive comparable status on AS and IMO even better treatment including free upgrades to F on AS flights, fee waivers, etc.

I think this depends on how you use your miles. I've never been able to find saver awards to Mexico, Hawaii during peak periods, but others have reported success. OTOH there is no question that AS has some good international partners. In some ways the VX $-based program is easier to use and offers more predictable value - though aspirational awards come at a much higher cost.

I concur. It would be foolish to destroy the brand - better to simply integrate scheduling and FF programs, similar to pre-merger UA/CO. I see this as more akin to WN/AirTran, which took a long time to merge ops.

GrayAnderson

Well, and I'm going to argue that VX actually has a brand that stands on its own. I could hash out differences between DL, UA, and AA (and some of their now-merged predecessors) but dangit, it would take some effort and even then I don't know what would stand out between them. Honestly, in the scope of things, I can speak to five airlines which have brand/product propositions that stand out in ways I can articulate: VX, WN, NK, and to a lesser extent AS and HA. The first three are glaringly obvious (VX's high-quality operation; WN's single-cabin product; NK's deep-discount, screw-you-with-fees model [I said stand out, not necessarily in a good way]; and HA/AS's somewhat-unique products [HA has a somewhat-unique product, partly because they're an almost 100% long-haul airline]).

Beckles

All this talk of VX being acquired by anyone is nonsense in my opinion. The airline's current market cap is $1.5 Billion, so it's safe to say they're not taking any offers less than that.

What does VX have that anyone would be willing to pay $1.5 billion for? A couple gates at DAL? A few landing slots? Leases on some aircraft? A few dozen Airbus delivery slots? Without the brand itself (which it's hard to see how any acquirer would get value out of), the sum of the parts doesn't come to $1.5 billion.

spin88

What one gets with VX is a brand that has attracted a large number of flyers who are by and large willing to pay a premium to fly VX, mostly ex-SFO. The loyalty of those flyers is the most valuable thing. [e.g. via a personal story c1998-2001 I flew TWA, always on a full fare ticket, AA came on, stripped out upgrades (we suddenly had to earn certs), club access for elites, and took down the rather reliable flights ex-STL I was using. I skipped off to another airline - CO. Fast forward 10 years my seat mate on a flight is a senior exec at AA. We get to talking, and he says that AA really bungled that merger and that nearly all of the premium traffic had left when they took over, rather than as they had just assumed switching to AA's existing network.]

I tend to be of the same view you have, I just don't see B6 (or AS) retaining many of the VX flyers if the airline suddenly becomes something else.

The "winner" in a VX take over is short term probably United.

While I understand the desire for airlines to bulk up (AS and B6) I continue to think the thing that makes the most sense is someone taking a stake and giving recypocol benifts to their fliers (like with the old NW/CO tie up).

travelingchumley

So someone will lose their job, who?

Indelaware

This is an aviation forum and we use airline codes here.

Yes, there is a strong tie between DL and VS, but it is not a majority tie as travelingchumley had suggested. travelingchumley also suggested that DL owned a majority interest in VA (Virgin Australia), it does not own any bit of VA as far as I know and certainly nothing significant. And you are correct, DL also doesn't own a chunk of VX.

The only airline that DL owns a majority interest in is 9E.

GrayAnderson

Yeah...the main holders in VA are Air New Zealand and Virgin Group (around 25% each).

BearX220

If VX financiers want to monetize / cash out -- and this is an excellent time to do so; we're at the probable apex of an airline boom-bust cycle, with VX making consistent profits for a change, and its investors have been patient -- then a lot of other tactical considerations become moot.

vxflyer

Craplaska and JetBlue can keep their filthy dirty paws off VX. That goes for every other [redacted] U.S. air carrier too. DL = garbage. UA = Garbage. AA = Garbage. AS = Garbage. There are only three U.S. airlines worth anything: HA, VX, and B6 though B6 can [redacted] of thinking about touching VX.

edcho

While an owner could say that for a private company, VX is now a public company. Everyone thinks with $$$ in this domain....

Indelaware

The problem is not so much share owners thinking about $$$, it is share owners and senior executives thinking about shor term $$$ while ignoring long term growth. Even more concerning are investment bankers and lawyers whose thought about $$$ is for the fees that they will receive from a merger notwithstanding the long term interests of share owners.

Despite all the cries that demand makes markets, the interests of passengers never are of concern to those who will stand to profit from a merger. Even the DOJ with their charge to protect both market place and customer from excessive avarice is only concerned to minimally protect the market place and consumers. That's why we have seen so many airlines disappear, many of them great airlines.

vxflyer

VX can choose not to accept an offer. It's like Starwood with Marriot versus selling out to the Chinese.

SFGuy37

I think you mean the 'VX shareholders' can choose not to accept an offer, but remember that a very small group of institutional shareholders, including original investors Virgin Group and Cyrus Capital, can cast the majority decision either way dependent upon whether they want to cash out or not.

JamilD

Fox Business reporting that a deal could be announced early next week, and that senior JetBlue executives are reportedly flying to San Francisco on Monday.

https://amp.twimg.com/v/2efb2c9a-633...0-9311f56183c7

AAddicted

So Jetblah looks to be the winner.

I'm sure the VX FF base will be placated and assured the merged airlines will blend their culture and product, which we all know will be bs.

It was fun while it lasted. Better burn those miles before all you can do is redeem them on Hawaiian or Jetblah.

Sure am glad I stockpiled 100k points and got this stupid VX credit card a month ago. Feel like such an idiot. Jetblue sucks only slightly less than the big 3.