robbedagain
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thanks for the info i knew that some of those places did not have open skies but it sounds like its all of latin america?
"Delta eyes Virgin Atlantic Swoop"
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Chile has Open Skies and they have a more market driven economy than other countries... but key countries like Brazil, Argentina, Colombia, and Mexico do not have Open Skies w/ the US but the impact of that varies from country to country.
Frugal Flyer,
the basis for both DL and VS winning in the deal is because they join forces... VS has the 2nd largest longhaul presence at LHR while DL has the potential to push alot of traffic onto VS' flights and to help sell them in the US far better than they could do on their own.
There will likely be some swapping of routes but there is no need for one partner to be taken over by the other - any more than it should occur with UA/LH or AA/JL or DL/KL or.... any one of the many JVs that exist between US and foreign carriers..... and there is plenty of evidence that they do help grow revenues.
Frugal Flyer,
the basis for both DL and VS winning in the deal is because they join forces... VS has the 2nd largest longhaul presence at LHR while DL has the potential to push alot of traffic onto VS' flights and to help sell them in the US far better than they could do on their own.
There will likely be some swapping of routes but there is no need for one partner to be taken over by the other - any more than it should occur with UA/LH or AA/JL or DL/KL or.... any one of the many JVs that exist between US and foreign carriers..... and there is plenty of evidence that they do help grow revenues.
signals
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Space travel is a bit more "on the edge" from a business standpoint than even the rough airline industry. Branson is an astute, if not eccentric business person who is not willing to plunge headlong into a business w/o the odds stacked in his favor, including lots of help and cooperation from the US states that have to make the venture work.
LHR is considerably more "known" ... but then maybe Branson's desire is to make money on VS and let DL help him turn the airline around, then cash out and invest in other "out of the world" ventures which will light a fire to the financial performance of his more "down to earth" businesses.
Branson would be one of the few business people in the world who could operate successfully on so many levels of business based on culture and image.
LHR is considerably more "known" ... but then maybe Branson's desire is to make money on VS and let DL help him turn the airline around, then cash out and invest in other "out of the world" ventures which will light a fire to the financial performance of his more "down to earth" businesses.
Branson would be one of the few business people in the world who could operate successfully on so many levels of business based on culture and image.
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Space travel is a bit more "on the edge" from a business standpoint than even the rough airline industry. Branson is an astute, if not eccentric business person who is not willing to plunge headlong into a business w/o the odds stacked in his favor, including lots of help and cooperation from the US states that have to make the venture work.
LHR is considerably more "known" ... but then maybe Branson's desire is to make money on VS and let DL help him turn the airline around, then cash out and invest in other "out of the world" ventures which will light a fire to the financial performance of his more "down to earth" businesses.
Branson would be one of the few business people in the world who could operate successfully on so many levels of business based on culture and image.
LHR is considerably more "known" ... but then maybe Branson's desire is to make money on VS and let DL help him turn the airline around, then cash out and invest in other "out of the world" ventures which will light a fire to the financial performance of his more "down to earth" businesses.
Branson would be one of the few business people in the world who could operate successfully on so many levels of business based on culture and image.
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Meanwhile on the Pacific, Korean is dropping its NRT-LAX flight that it has operated for 30 years... perhaps a sign of a pending DL-KE-Chinese joint venture over the Pacific?
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It is undoubtedly precisely because VS' financial condition was known to DL that the purchase price was far less than SQ paid years earlier and barely - if at all - higher than the underlying value of the LHR slots that VS holds.
It is very likely that VS will see improvements but they are bearing the fruit of not being in alliances for a long time, of sticking to their 4 engine philosophy way beyond when it should have been abandoned, and failing to attract key corporate clients. Branson waited a long time to recognize that he needed people who really understand the airline industry and in bringing in Kreeger from AA, VS is willing to go after some of the best revenue in the business - and get back door access to archrival BA.
VS is the airline equivalent of a fixer-upper but it has everything that matters in real estate - location, location, location.
Let's give it a little time - but DL's "out" will always be that they can push to liquidate VS if necessary (or stand by to gain if VS cannot operate on their own any longer) and DL will still end up w/ half of VS' LHR slots.
But the chances are real high that VS will be turned around - but just like every US airline that has been closed to failing, it will take time to return to better days.
It is very likely that VS will see improvements but they are bearing the fruit of not being in alliances for a long time, of sticking to their 4 engine philosophy way beyond when it should have been abandoned, and failing to attract key corporate clients. Branson waited a long time to recognize that he needed people who really understand the airline industry and in bringing in Kreeger from AA, VS is willing to go after some of the best revenue in the business - and get back door access to archrival BA.
VS is the airline equivalent of a fixer-upper but it has everything that matters in real estate - location, location, location.
Let's give it a little time - but DL's "out" will always be that they can push to liquidate VS if necessary (or stand by to gain if VS cannot operate on their own any longer) and DL will still end up w/ half of VS' LHR slots.
But the chances are real high that VS will be turned around - but just like every US airline that has been closed to failing, it will take time to return to better days.
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