Virgin-Delta Atlantic
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Interesting development. Delta is being as proactive as ever but I wonder how much Air France-KLM actually wants in given that they are still trying to get their own house in order. I wonder what Star is thinking.
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I think this is a good move.
A VS/DL combo would be a great one (again). Hopefully something comes of it. |
Grrr...does that mean Skypesos can be redeemed on VS? That's a significant devaluation right there.
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Originally Posted by percysmith
(Post 19784742)
Grrr...does that mean Skypesos can be redeemed on VS? That's a significant devaluation right there.
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I read the telegraph report yesterday. I appreciate that the airline has lost money this year. Its changing its CEO, and getting short haul routes. I feel this is a bad move for Virgin. Its only my gut feeling, I appreciate that raising capital is difficult at the moment. The UK needs a strong independant airline, along side BA. I feel Delta just wants Heathrow landing slots. If we had a third runway, they wouldnt even look at VS, instead allow it to fail. I also feel, pre internet (I might be wrong) that VS was the only thing that made Virgin group. Othewise it wouldnt be the global company it is today.
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I think the Virgin brand will still exist, just that SRB will be a minority shareholder - much like Virgin America and Virgin Australia. I mean Virgin Australia has flourished recently so it is not an indication of a down hilll road.
I would say it is the opposite. Delta and VS used to be good partners, DL even used to have a staff member on some VS flights if we go back a few years! |
Originally Posted by UA Fan
(Post 19785438)
Why? If there is no YQ, it is another partner for an airline that is very stingy with awards.
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Originally Posted by ANstar
(Post 19786063)
I think the Virgin brand will still exist, just that SRB will be a minority shareholder - much like Virgin America and Virgin Australia. I mean Virgin Australia has flourished recently so it is not an indication of a down hilll road.
I would say it is the opposite. Delta and VS used to be good partners, DL even used to have a staff member on some VS flights if we go back a few years! |
The FT, which has a solid track record of accuracy on reporting aviation deals, has quite a lot of detail on the potential deal, suggesting that AF-KLM could acquire 5-10% of VS, giving SkyTeam carriers control of the airline.
http://www.ft.com/cms/s/0/193efefa-3...#axzz2DvBR1V4J One analyst, who declined to be named, said Singapore had realised that it did not wield significant influence at Virgin – and therefore he questioned what level of control the US airline would have.The answer might be found at Air France-KLM. It was considering the case for buying a stake of between 5 and 10 per cent in Virgin Atlantic, said another person close to the potential deal, who stressed no decisions had been taken. This person said the logic of any transaction involving Air France-KLM would be to secure control of Virgin for SkyTeam – the global airline alliance led by the Franco-Dutch group and Delta. [...] If Air France-KLM bought a stake in Virgin, it would purchase equity from Sir Richard’s Virgin Group, which owns 51 per cent of the UK airline. However, such a development would only happen if Delta were able to reach a deal with Singapore Airlines on its 49 per cent stake in Virgin Atlantic. Air France-KLM had no appetite to buy a stake of more than 10 per cent in Virgin, added the person close to the matter. The group is the most leveraged of the big European flag carriers and is seeking to cut its debt. Air France-KLM declined to comment. |
Has there been any word as to whether or not SRB would be willing to sell? All the speculation is great and all, but if he isn't selling then delta is going to be in the same boat that Singapore Airlines is right now.
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Originally Posted by rurouni212
(Post 19791012)
Has there been any word as to whether or not SRB would be willing to sell? All the speculation is great and all, but if he isn't selling then delta is going to be in the same boat that Singapore Airlines is right now.
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Sq doesn't really need cash, I hope they dont sell vs & instead vs joins star alliance.
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Originally Posted by diamantaire
(Post 19815690)
Sq doesn't really need cash, I hope they dont sell vs & instead vs joins star alliance.
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Originally Posted by ian001
(Post 19803217)
SRB has said in the past he is willing to sell down part of his stake, but has expressed a preference for a new investor acquiring SQ's stake instead. Put another way, I don't think he has said explicitly he's willing to cede control.
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