"Delta eyes Virgin Atlantic Swoop"

[Kev3188]

This article seems to think the whole thing's a bad idea, with the main hurdle being SRB's ego. Who knows?


http://finance.fortune.cnn.com/2012/12/05/virgin-delta-airlines/

 

[WorldTraveler]

The article misses a lot of points, including that the deal is not being done to connect traffic thru LHR.... in fact, LHR will become less and less of a connecting airport for every carrier there. The deal is about local traffic.

No doubt that Branson's ego was a detriment to SQ getting what it wanted.

I feel rather certain DL knows what it is up against and will craft a deal to protect DL's interests, and not fuel Branson's wealth or ego.

I don't want DL getting involved with VS unless these issues are well-defined... but I think alot of people overestimate his ego over his desire to make money. Let's keep in mind he is losing money at VS as well as Virgin here in the US and another Virgin or two around the world has bit the dust. His business empire isn't running quite as smoothly as it did years ago. I think he is more than open to find the side exit and do a few cameos now and then (side w/ side w/ Deltalina on Safety Video 2013?)

We'll see....

 

[WorldTraveler]

this deal is all the more important if AA/US are now alot closer to a merger. DL knows it has to move to limit the influence AA/BA can have in the east coast.

 

[Carlos]

I was just reading on the Sunday times 12/9/12 that this deal may be concluded early next week, if done I do believe that all bases will be covered because AF will buy some of the 51% of SRB stake lets see

 

[Airlinelifer]

I was just reading on the Sunday times 12/9/12 that this deal may be concluded early next week, if done I do believe that all bases will be covered because AF will buy some of the 51% of SRB stake lets see

I was just reading on the Sunday times 12/9/12 that this deal may be concluded early next week, if done I do believe that all bases will be covered because AF will buy some of the 51% of SRB stake lets see

Thanks Carlos, and welcome to AirlineForums.com, here's the link to Carlos' post.

http://www.thesunday...icle1172853.ece

 

[WorldTraveler]

If the article is correct, then it says that Branson is ready to become at most a passive investor in Virgin Atlantic and that could indicate his position regarding other active investments in the airline industry.

 

[swamt]

I will be the first one to admitt I know nothing about DL or VS. Could this move by DL be to keep them the largest airliner out there (USA)? Not that I know that it would. However, with the possibility of AA merging with US that would put the new AA the largest airliner. Just curious...

 

[Carlos]

Thanks Carlos, and welcome to AirlineForums.com, here's the link to Carlos' post.

http://www.thesunday...icle1172853.ece

Thank you for welcome me and posting the link, still figuring the way.

 

[Carlos]

I will be the first one to admitt I know nothing about DL or VS. Could this move by DL be to keep them the largest airliner out there (USA)? Not that I know that it would. However, with the possibility of AA merging with US that would put the new AA the largest airliner. Just curious...

I don't think is about size, is more been strategically opportunistic, SQ/VS are losing money together and on top there is bad blood between them, LH don't care about them and UA a few month ago closed code sharing with them, in the other hand DL/AF/KL offers them JV Skyteam great code sharing around the world, Is better to be where you'll be part of the team than watching the team reaping you apart.

 

[WorldTraveler]

Even I had to chuckle at these comments from the Irish-born CEO of British Airways who obviously has to do some recalculating and spreading a little fear regarding the possibility that DL could end up operating - either via its own name or in partnership with AF/KL as a controlling partner of VS - a decent sized hub at LHR in BA's backdoor.


Willie Walsh: Virgin Atlantic brand could soon be history

The Virgin Atlantic brand could could soon be consigned to the history books, British Airways and Iberia boss Willie Walsh has suggested, with Sir Richard Branson’s UK carrier set to become the latest name to be swept up in the wave of aviation consolidation.

Willie Walsh said the Virgin Atlantic name will likely be scrapped by US giant Delta. Photo: REX FEATURES




Mr Walsh said the Virgin Atlantic name will likely be scrapped by US giant Delta, which is in talks to buy a 49pc stake in the UK carrier from Singapore Airlines. It is believed negotiations could come to a head as early as this week.


Delta’s European partners Air France-KLM are subsequently expected to buy part of Sir Richard’s 51pc holding in the trans-Atlantic airline he set up in 1984.

Willie Walsh, head of International Airlines Group, argued Delta’s main interest in Virgin will be the UK carrier’s prized Heathrow take-off and landing slots.

“I can’t see Delta wanting to operate the Virgin brand because if they do what does that say about the Delta brand?" Mr Walsh said. “Delta believe they are the number one airline in the world, so what they would want to do is acquire the slots at Heathrow to enable them to have a strong presence at Heathrow.”

Since a number of VS' slots are not suitable for TATL operations, VS will not be relegated solely to be a TATL airline - but it isn't out of the realm of possibility that DL could operate flights other than to the US under its own colors.... or under Skyteam or joint AF/KL colors .... or retain VS for nonLHR services....or transfer a certain number of VS slots to certain key US airports which DL does not serve to DL so that DL can operate routes under its own colors.
It is also possible that AF/KL could end up operating the short-haul flights within Europe...

but the possibility is very real that DL could operate a hub at LHR just as it does at NRT in a true internationalization of one of the airline industry's most interesting brands....

 

[WorldTraveler]

latest news say that AF/KL is not involved, Branson at this point wants to retain his share meaning that only the DL-SQ portion is in play WRT equity, and that DL and VS are talking about a joint venture.

This makes sense as a first step for Branson to move VS into the "global" airline business and would give DL access to about half of VS' revenues from LHR. Not clear at this point if the LGW services would be part of the JV.

It also means the DL/AF/KL relationship would change since DL would be investing its own money and not expecting to share parts of its LHR operation with AF/KL.

It is also possible if not likely that DL and VS would swap some routes around w/ a good chance that DL would use its own aircraft in some markets where VS has more than daily service giving each carrier a presence under their own brand.
Also, Anderson's statements that SEA will soon be getting LHR service again could prove more likely.

 

[Kev3188]

It's on.

* $360M to acquire Singapore's stake.
* DL will get 3 BOD seats.
*Virgin to stay separately certificated/operated
* Pending regulatory approval, etc., should be a go by the end of 2013.

Press release here:

http://news.delta.com/index.php?s=43&item=1822

 

[WorldTraveler]

wow.... the 2nd largest UK carrier with 22-25 flights/day between the US and UK plus more to other parts of the world is worth only $725M.

what a bargain.

DL has 3 seats on the board.

DL's to-do list just got one item shorter.

Note that it doesn't say that Virgin Atlantic will join Skyteam.

 

[gizmo_sc]

here is the link:

http://www.reuters.com/article/2012/12/11/singaporeairlines-virgin-sale-idUSL1E8NB0L520121211

 

[ContUNITEus]

Delta, in my opinion, is one of the great airlines existing these days. They dare to go where others don't.