VA & Delta tie up

[wayneg]

Delta have bought 49% of VA from Singapore Airlines http://www.bbc.co.uk/news/business-20680680

Singapore paid over £600 million, sold it for £224 million, a big loss.

How long before they take a controlling stake?

Maybe Delta read my post in this thread this morning http://www.disboards.com/showthread.php?t=3031680

 

[chmurf]

in the meantime, US Airways is really moving for a merger with American Airlines

http://www.bizjournals.com/memphis/...12/details-of-us-airways-american-merger.html

Airlines are already cross operating flights. We'll soon have the choice between one giant merged airline company and ... swimming across the pond ...

 

[Trevski220]

They have agreed to buy the 49% but by the time it's all approved by regulators and the like, I'd venture we won't see much difference/happening till around this time next year!

 

[MichelinMan]

Branson's bet Willie Walsh £1m that the Virgin brand will still be around in 5 years time.

Willie Walsh says he can't afford £1m but would settle for a bet of a knee in the gonads instead!!!

 

[wayneg]

Branson's bet Willie Walsh £1m that the Virgin brand will still be around in 5 years time.

Willie Walsh says he can't afford £1m but would settle for a bet of a knee in the gonads instead!!!

Can't you just feel the love they have for each other?

 

[wayneg]

Just received email from VA:

Dear Wayne,

We are delighted to announce a new strategic alliance with Delta Air Lines.

We believe this is very exciting news for our members, for our business and signals the start of a new era of growth and opportunities. On 11th December 2012, we announced that Delta will acquire a 49% stake in Virgin Atlantic from Singapore Airlines. Virgin Group - and Richard Branson - will continue as majority shareholder with a 51% stake in Virgin Atlantic.

Our new partnership with Delta will provide a significant boost for both airlines between North America and the UK, particularly in the New York-London market, which is one of the most competitive business markets in the world.

We have also announced a joint venture with Delta which will create an expanded transatlantic network. By combining the strengths of our two companies in a joint venture, we can better serve customers travelling between North America and the UK and continue building a better airline for our employees, shareholders and most importantly our customers.

In order to realise all the benefits of the joint venture, the US Department of Transportation (DOT) will need to grant Delta and ourselves regulatory approval. Because we believe there are major consumer benefits, we are confident that the DOT will approve the joint venture and it will come into effect within the next 12 months.

As always we will keep you posted on how we are progressing and will be in touch soon with more information about some exciting Flying Club Programme changes.

For more information visit www.virginatlantic.com

Thank you so much for your on-going support.

Steve Ridgway

Chief Executive - Virgin Atlantic

 

[Disneynutinlondon]

Just received email from VA:

Dear Wayne,

We are delighted to announce a new strategic alliance with Delta Air Lines.

We believe this is very exciting news for our members, for our business and signals the start of a new era of growth and opportunities. On 11th December 2012, we announced that Delta will acquire a 49% stake in Virgin Atlantic from Singapore Airlines. Virgin Group - and Richard Branson - will continue as majority shareholder with a 51% stake in Virgin Atlantic.

Our new partnership with Delta will provide a significant boost for both airlines between North America and the UK, particularly in the New York-London market, which is one of the most competitive business markets in the world.

We have also announced a joint venture with Delta which will create an expanded transatlantic network. By combining the strengths of our two companies in a joint venture, we can better serve customers travelling between North America and the UK and continue building a better airline for our employees, shareholders and most importantly our customers.

In order to realise all the benefits of the joint venture, the US Department of Transportation (DOT) will need to grant Delta and ourselves regulatory approval. Because we believe there are major consumer benefits, we are confident that the DOT will approve the joint venture and it will come into effect within the next 12 months.

As always we will keep you posted on how we are progressing and will be in touch soon with more information about some exciting Flying Club Programme changes.

For more information visit www.virginatlantic.com

Thank you so much for your on-going support.

Steve Ridgway

Chief Executive - Virgin Atlantic

I got one of them to

I was hoping that for our proposed 2014 trip I'd have enough miles to get a good deal on our flights either full miles fares or miles+money fares or a mix of both ..... I wonder what this deal will means for those kinds of fares ?

 

[Tink1987]

I think it's a good buy. Personally I can't see how Willie could say the Virgin brand won't be around in 5 years time?! Can you imagine no Virgin Atlantic, Virgin Holidays, Virgin cosmetics, Virgin trains etc etc

 

[wayneg]

I got one of them to

I was hoping that for our proposed 2014 trip I'd have enough miles to get a good deal on our flights either full miles fares or miles+money fares or a mix of both ..... I wonder what this deal will means for those kinds of fares ?

Too early to tell yet, if RB keeps 51% of the company I don't think much will change, if he sells anymore of the company and Delta get the majority then they could change things.

I think it's a good buy. Personally I can't see how Willie could say the Virgin brand won't be around in 5 years time?! Can you imagine no Virgin Atlantic, Virgin Holidays, Virgin cosmetics, Virgin trains etc etc

Does he mean VA as an airline or the whole Virgin brand? if he just means the airline I would say its 50/50 if there will still be a VA airline in 5 years time. The Singapore stake devalued from £600 million to £224 million.
VA has lost almost £200 million in the last 3 years accounts (2010 lost £132 million, 2011 £15 million profit, 2012 lost £80 million)
RB is a very good businessman, if he thinks he can make more money by selling to Delta(or another airline) now rather than keep the company medium to long term he will sell and the brand easily disappear from our skies.

 

[disneyholic family]

that's very interesting!
i haven't received anything from Delta about it (as a delta FF, i get mail from them ALL the time....multiple mails a day)...

my trip to the states this year was with Delta....they were much improved on the ground...
much much improved....in the past, the delta ground agents have been less than user friendly, but on this trip (on all the different segments) the delta ground agents were friendly AND helpful. And even were able to think outside the box. I was impressed as it was such a change from what i'd experienced in the past.

The crews in the air weren't much different. Some really good flight attendants and some just so-so.
but the change on the ground was significant enough to make me strongly consider them in the future when deciding between airlines.