[Edski777]

Mr Walsh shows with his “knee in the groin” remark the class we have come to appreciate (not!). BA at its best, I believe.

Glad I took most of my business elsewhere some time ago. You sure don’t want to be supporting ïn any way or form this type of management style or in any other way be affiliated with them.

It is clear Mr Walsh is up for replacement.

[christopheL]

The DL/VS agreement is not good news for BA. This may explain why (i) R Branson new “attack” and (ii) why W Walsh is that elegant
The funny thing for French people is that in French, the “groin” is the nose of a pig which makes W. Walsh answer even more inelegant than in english

[BusinessTraveller]

More information on Delta’s deal to purchase SIA’s 49 per cent in Virgin Atlantic for US$360 million can be read here:

http://www.businesstraveller.com/news/delta-confirms-purchase-of-49-per-cent-stake-in

[Str8Talking]

I wonder, after this, whether VS will remain un-allied.

[ImissConcorde]

Bet Singapore Airlines are relieved!

[AMcWhirter]

SIA must be relieved to get rid of what it describes as an “underperforming investment.”

But it has also lost heavily on the deal.

It is selling the stake today for USD360 million … yet some 13 years ago it paid GBP 600 million for the same stake.

http://www.businesstraveller.com/news/sia-tries-to-sell-virgin-atlantic-stake

[Henkel.Trocken]

I think it’s a bit like you can always buy your way out of a contract you don’t want – it comes at a price much as LH bought their way out of BD taking a huge loss on the price they paid.

No doubt SIA will be delighted to be rid of something they never really had much use for and although it’s of little real interest to me, this may just bring some sensible competition to the north Atlantic.

AFAIK, Delta are one of the better US carriers and fairly sound financially so perhaps Walsh will get a knee in his groin after all. There are a few people who would probably like to watch!

[christopheL]

If the purchase price was £600 million and the sale price is USD 360 million, then SIA is making a loss.

However according to SIA’s statement, ‘the successful completion of the sale will result in a profit being booked in Singapore Airlines accounts’.

I wonder who is right and who is wrong.

[colinjamesluke]

DL were previously reported as saying their main interest was LHR slots. They would surely prefer a strong OWN brand presence to surpass UA and AA, so the slots would seem more important than having VS as a “partner-rival”. Maybe Sir Richard is even thinking of selling his share to DL after a decent interval? The UK Govt. is too senseless to aviation matters to block it. The US would never allow VS or BA to buy even 49 pc of a US carrier. Sir Richard has offered to give BA staff £1m if the VS brand disappears – but he could easily afford that! I would think DL would pay handsomely to stage such a coup over UA, AA and BA at LHR!

[canucklad]

christophel…..not an expert, but do companies not allow for depreciation of an asset over a period of time……

Wouldn’t surprise me if SQ account the purchase in the black column!!

[BusinessTraveller]

A couple of points coming out of the Delta / Virgin press conference currently streaming live:

– The carriers will look to implement intra US and UK domestic codeshares, and reciprocal earn and burn FFP privileges ahead of the full transatlantic joint venture being completed.

– Virgin is currently evaluating the benefits of Skyteam membership, and aims to come to a conclusion on this over the next few months.

– The aim is for Virgin and Delta to eventually co-locate their Heathrow services at Terminal 3

[Hippocampus]

Singapore Airlines has written off most of its investment in Virgin Atlantic so the proceeds from this sale can be booked as a profit.

This is a better outcome for IAG than Virgin joining Star Alliance. A combined Virgin Atlantic and Delta is still a very small presence at Heathrow compares to an ever expanding IAG and Oneworld and many frequent flyers would have preferred Virgin to have joined Star Alliance,

[canucklad]

How much influence would VS have had in the SQ boardroom when it came to making a decision on who to sell to its share to

The more you look at the deal. The more you fear for the VS in the future

I agree BA and IAG must be delighted!

[AMcWhirter]

SIA has made some poor investment decisions concerning other airlines in the past.

As noted above it originally paid GBP600 million for its 49 per cent stake in VS which it has now sold to DL for USD360 million.

I am sure many readers on this Forum may have forgotten that SIA also make poor investments in Air NZ and in Ansett.

According to this report in the Sydney Morning Herald, SIA lost AUD 500 million on its four-year investment in Air NZ.

It also lost “hundreds of millions of dollars” when Ansett collapsed in 2001.

http://www.smh.com.au/articles/2004/10/06/1096949543483.html?from=storylhs

[kiwibrit]

BA and IAG must be delighted? Really? With all of Delta’s US corporate connections now open to VS, and the competition of their combined nine daily flights between NYC and LHR.

No, I don’t really think delighted is the right word.

[Author]

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