[Anonymous]

[Bucksnet]

I don’t think Virgin will be joining Star if this happens: –

http://www.telegraph.co.uk/finance/newsbysector/transport/9717090/Delta-plots-to-take-control-of-Virgin-Atlantic.html

[Edski777]

This news also made it into the Dutch newspapers online. In other threads on this forum there was some speculation about Virgin being a likely candidate for Skyteam.
It looks even more so now.
This would also spell trouble for BA on LHR as the presence of Delta and AF/KLM would increase and therefor competition will increase. Given the problems that LHR has with the limited amount of slots available it could be great news for AMS and CDG as well as they are virtually limitless in this respect. Virgin can become both a feeder as a long haul asset to AF/LHR.
Interesting to see if BA is letting this all pass.
Also interesting to see if this involves or impacts Virgin in Australia and the US.

[Vertrek]

A good news indeed, VS’s USA routes will be a very valuable addition to AF-KLM-Delta + AZ jv and SkyTeam presence in the UK, considering LHR-JFK is one of the most important route int he world for the aviation market.

If it were to happen SkyTeam would be the No. 1 alliance not only for China but also for Europe considering they have bases in Europe’s most valuable airports; LHR, CDG, AMS, MAD, FCO, MXP, LGW as well as the No. 1 alliance for EU-US jv. I wonder if the EU will approve. =)

[LeTigre]

While this innovative plan from Delta is an excellent strategic move from them, Virgin Atlantic is a private company, therefore, any deal must have the backing of the Virgin Group. Any deal removing independence from the company, especially in regard to brand, will likely not go down well.

I see this situation a result of:
1. SQ wants to sell its unsuccessful stake
2. Maybe VS want to join Star, DL and AF think differently

If Virgin Atlantic did end up joining Skyteam, it would certainly even up the power balance transatlantically quite a bit.

Giving slots to other airlines for short haul services from LHR would however be stupid considering long haul is far more profitable and AF+KLM don’t even use their biggest narrow-bodies at LHR anyway, why can’t they upgauge first?

Counter offer from United and Lufthansa anyone?

[scott66]

I can’t see Lufthansa rushing back into the British aviation business whilst it’s still licking it’s sores from the last episode.

Vertrek, An excellent one liner about EU approval. 😀

[Edski777]

I wouldn’t worry about the EU. VS ain’t big enough to shake up the market for any of the parties involved. Even with AF/KLM and Delta involved BA will remain the largest at LHR. For a lot of transatlantic routes there is overlap with the prospective owners.

Losing some independence could be a worry to the Virgin Group, but is VS still regarded as a treasure or will Branson c.s. go for the money? If they can increase the value of their remaining shares by joining up I wouldn’t bet against a sale.

Vertrek makes an excellent point with regard to access to main European airports. Skyteam is slowly but surely moving in on all of them. This would extend their presence at LHR. If the VS deal would include the Aussie and US operations Skyteam will become a true global operator.

I have to agree with Scott66 on Lufthansa. I don’t see United stepping in if LH opts out. Given the financial situation of legacy carriers in the US I don’t think they will have the money for it. AA, while in a Chapter 11 situation, I don’t even consider to be a remote posssibility.

I don’t expect VS to decide on joining an Alliance before this is over.
No matter what VS would decide, DL and AF/KL will decide which alliance they will join after being bought. No need to upset anybody in the mean time.

[Jimmywright]

It will have zero impact on Virgin Australia and Virgin US. The reason being is all 3, including Virgin Atlantic are separate companies and this deal is related to Virgin Atlantic. The only link is the Virgin name used by Virgin Australian and US is ‘licenced’ from Virgin Atlantic.

[LuganoPirate]

Old Beardie will have his own inflated idea of what’s its worth and DL will walk away!

[Bucksnet]

Bloomberg has just confirmed this story. How long will it be before Virgin in is T4?

[LuganoPirate]

Is still a story though, and no money on the table yet. Besides, we’re talking SIA’s stake, no mention of the 51% shareholder.

As its a private company, I guess VS can block the sale if they want?

[Jimmywright]

The original article above talks about the remaining (51%) going to Air France/KLM.

As for being a private company, it is still 49% SIA and 51% Branson. So SIA can do what ever they like with their share, same too with Branson.

[Bullfrog]

Opportunity for the ‘white knight’ bidder … Etihad with their stake in Aer Lingus could create a perfect dual hub operating out of the Middle East to Asia / Africa & Australia and Heathrow for the US & Canada.

Perhaps Emirates would consider a bid & become number two to BA.

[LuganoPirate]

Not necessarily so Jimmy. Some articles of private companies restrict the transfer of shares either by shareholder agreement or directors. I would imagine SIA would have thought of that one though?

Would Branson’s new UK routes be part of the deal, or spun off into another subsidiary I wonder?

[craigwatson]

I think Branson might like to be concentrating on Virgin banks and Virgin Galatic, and maybe needs the money from this sale for those endevours?

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