Sir Richard Branson begins strategic review of Virgin Atlantic
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at 16:28 by Potakas.
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robsmith100ParticipantSir Richard Branson has hired Deutsche Bank to examine strategic options for Virgin Atlantic in a move that could eventually see him relinquish control of his airline.
5 Nov 2010
at 08:33
Age_of_ReasonParticipantAbout time too, Richard. Virgin/Branson has been good at delivering competition, and doing others’ jobs better. But nothing innovative.
It’s unlikely that BA/AA/Ib would be interested in a deal, having better places for their money. Lufthansa already has access to Singapore through Star Alliance, and can only benefit from increased traffic towards Frankfurt once cross-channel rail expands that direction. But having taken the pain of overpaying (in retrospect) for BMid it makes no sense to discard the benefits (LHR slots) to a 4th-force competitor.
So it looks like Richard has 2 options :
1. schmooze with AFKLM to consolidate th Europe-Asia market and rationalise ransatlantic to compete with BA/AA/Ib
2. look to Virgin brand-strength and diversify to become the first major multi-modal rail/air carrier, preparing for high-speed rail to BHX which will be on Virgin’s west coast rail patch, to establish a hub with feed from all the UK population centres except Kent and Caithness.Or thirdly, stagnate and be sold at the price the asset-stripping market will pay.
5 Nov 2010
at 12:35
LuganoPirateParticipantAccording to Bloomberg, Virgin is looking to join an Alliance and it will most likely be Star.
It also seems he will not relinquish control of VS, but I guess if the money were right?
19 Jan 2011
at 20:14
MartynSinclairParticipantI wonder how this will affect the product makeover announced last year. I have not flown with VS for nearly 2 years, simply because the VS service went down as BA and NCW service went up. Even the BA economy service is better than the VS comparable.
What ever happens to the VS ownership it would be sad if the products were not improved even if only to give BA a run for their money.
19 Jan 2011
at 22:49
Age_of_ReasonParticipantI doubt if I could give the Branson-Guruu any advice on business – except the obvious “Invest or Die, Develop or Stagnate”, Virgin has taken the strtegic step of debranding from Virgin Nigeria. He could grow some easy business by providing a Lagos-PortHarcourt extension to his UK-Lagos and match the AF and Lufthansa products to tap the expat oil market.
20 Jan 2011
at 06:59
LuganoPirateParticipantI could also imagine there is more business coming out of Port Harcourt than Lagos since the Government and Diplomatic Corp moved to Abuja.
20 Jan 2011
at 08:29
Binman62ParticipantLogic dictates it will be Star if joining an alliance. Another option would be outright control for SQ giving them, at last giving them access to LHR and the slots they have craved across the atlantic for many years.
AA/BA/IB could do with the slots but it is doubtful if they could get that past the regulators.
20 Jan 2011
at 09:23
StephenLondonParticipantSteve Ridgeway has been talking about joining star for a couple of years now, at least to corporate clients…
Seems SQ still have found nobody to pick up their 49% of VS…20 Jan 2011
at 09:50
LuganoPirateParticipantRather SQ have not found someone to pick up the stake at the price they want!
20 Jan 2011
at 15:15
PotakasParticipantEtihad is on the game too,
The Sunday Times said the chief executive of Etihad had written to Deutsche to express his interest in the firm, without giving any more details.
“We have no comment other than that we talk regularly and frequently to many airlines and a range of other businesses from all over the world about business issues and opportunities,” a spokeswoman for Etihad said.
A spokeswoman for Virgin Atlantic said the strategic review was still in the early stages and said the group could not comment on individual interest.
23 Jan 2011
at 16:28 -
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