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theflyingsikh
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The_Goat
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 Posted: Wed Dec 12, 2012 12:37 am Post subject: |
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Yes, DL is acquiring SQ's stake in VS.
But I wonder why DL wants more access to LHR. They already have a European hub in AMS. Are they planning a second European hub, or is it to compete better withe the BA-AA OW partnership across the Atlantic?
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theflyingsikh
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| Posted: Wed Dec 12, 2012 2:52 am Post subject: |
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| The_Goat wrote: | Yes, DL is acquiring SQ's stake in VS.
But I wonder why DL wants more access to LHR. They already have a European hub in AMS. Are they planning a second European hub, or is it to compete better withe the BA-AA OW partnership across the Atlantic? |
It is to compete better with BA-AA partnership for Trans-Atlantic routes. More so on the London-New York routes. Where BA-AA have a fair share of the pie currently. Even with Virgin-Delta new partnership they will be able to offer only 9 daily services between LON-NYC. In comparision to the 15 (on an average) already being offered by BA-AA.
Ofcourse this also means more choice of one stop only flights (via lhr) for Indian pax to North American destinations.
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ameya
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| Posted: Wed Dec 12, 2012 10:13 am Post subject: |
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And SQ had written off their investment in VS
So even when they have got less money than they paid in 1999, SQ has actually made money on their books ! |
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jasepl
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| Posted: Wed Dec 12, 2012 11:55 am Post subject: |
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Oh excellent news.
My liking Delta's product and service quality aside, they have shown us that they are one of the few Western airlines that know a thing or two about controlling finances and that they know the difference between cost and value.
By the way, is the Virgin still red hot? That SQ paid 700 million and 12 years later happily got rid of them for a third of that amount? 
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Nimish
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| Posted: Wed Dec 12, 2012 3:20 pm Post subject: |
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This is a great deal for DL - especially in terms of value. I wonder why none of the Gulf Sheikhs threw their money this way?
Is the DL-VS going to be at arms-length similar to SQ/VS? Or are they looking at a deeper collaboration/ eventual Skyteam entry to VS?
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jasepl
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| Posted: Wed Dec 12, 2012 3:35 pm Post subject: |
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| Nimish wrote: | This is a great deal for DL - especially in terms of value. I wonder why none of the Gulf Sheikhs threw their money this way?
Is the DL-VS going to be at arms-length similar to SQ/VS? Or are they looking at a deeper collaboration/ eventual Skyteam entry to VS? |
They've clearly said it's going to be a transatlantic JV. So very different from SQ's hands-off approach.
Clearly, SQ were looking for an investment and nothing more. Delta are interested in access to Heathrow and more traffic and all that operational stuff more.
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iah87
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| Posted: Wed Dec 12, 2012 8:16 pm Post subject: |
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| jasepl wrote: | Oh excellent news.
My liking Delta's product and service quality aside, they have shown us that they are one of the few Western airlines that know a thing or two about controlling finances and that they know the difference between cost and value.
By the way, is the Virgin still red hot? That SQ paid 700 million and 12 years later happily got rid of them for a third of that amount? |
I dont know about cost control at DL. After years of spending, a few years ago, they declared bankruptcy under the very favourable US bankruptcy laws, allowed them to unload all union contracts, convert bonds to 20% of its value (I was one of the victims). If not for that, they would be struggling, very convenient for DL. Its a pity that India does not have similar bankruptcy laws. |
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Spiderguy252
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| Posted: Wed Dec 12, 2012 11:16 pm Post subject: |
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Not quite Virgin anymore, hey? 
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jasepl
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| Posted: Mon Jun 24, 2013 9:14 pm Post subject: |
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So a few days after getting regulatory approval, DL-VS have announced operational details of their partnership, to be effective next week.
That's how its done : line up your ducks and when its go time, it's go time.
http://www.delta.com/content/www/en_US/traveling-with-us/where-we-fly/flight-partners/virgin-atlantic-partnership.html
None of the 15 July announcements of something supposedly effective 1 July but not really functional until 9 November nonsense that we get treated to regularly
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airbus340
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| Posted: Tue Jun 25, 2013 8:47 pm Post subject: |
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VS - DL always knew what they were going in for and hence realised the code shares as soon as the regulatory permission were in place .
JV to follow by the end of the year .
From an India stand point too this works massively in favour of VS . Their DEL and BOM flights will hv loads of DL frequent fliers with the 100 % earn and burn on all VS flights .
This will in turn push yields up for VS and As DL own 49 % of VS , they will have no problem feeding into VS . |
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jasepl
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| Posted: Tue Jun 25, 2013 9:49 pm Post subject: |
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Well, how wonderful this whole thing is remains to be seen. The only thing we know for sure is that Delta got Virgin on the cheap, and that's not surprising since, red-hotness aside, VS haven't exactly been lighting the skies on fire off late. Many other airlines have now caught up to - or even surpassed - their once revolutionary product. Hell, some say that BizE is a more solid offering than Upper, once you look past the bling and the marketing fluff.
I'm talking more about how they went about the whole process:
- Enter into an agreement that will pass scrutiny with minimal pushback from the authorities
- Present the same agreement for approval that was entered into
- Whilst the bureaucrats take their time, get everything lined up, so you're ready to get things rolling immediately approval is obtained
When the above is followed - as seems to be the case in Delta's takeover of Virgin - both parties are almost assures of getting what they desired without needless delays or unexpected regulatory surprises. It also allows them to announce their intentions to the public in an organised manner and then implement it efficiently and with minimal back-and-forth or fuss.
Compare that with the hash job that is Jet's wont on nearly every possible occasion. Especially more glaring with the Etihad deal, which is, possibly, very different on paper than it is in reality.
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airbus340
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