Virgin Atlantic To Join Alliance SoonBack to Forum
Anonymous15 Sep 2011
At last: –
Branson states announcement coming very soon. I wonder which one? OneWorld is out of course, and Star is more likely than SkyTeam if there is a takeover of / tie-up with BMI.15 Sep 2011
I actually think that Virgin Australia would be of much greater value to Star or Skyteam than Virgin Atlantic, although it is Atlantic that is currently in negotiations. It’s hard to see what Atlantic’s network offers the two alliances in REAL added value. Star fly to most of these destinations from London anyway.
Virgin Atlantic would probably increase the successful alliances sales power and presence in the UK more than anything else. As has been discussed on other threads, it is difficult to see Virgin purchasing BMI as a going concern. BMI’s losses are probably too great for Virgin to and Lufthansa will probably retain all slots that are used to its European hubs. That would leave the new Virgin with a handful of domestic routes and exposure to the former USSR and Middle East. This would not necessarily improve Virgin’s long term competitiveness or profitability. My personal view is that Virgin Atlantic has had it’s heyday and will continue to be squeezed by an increasingly LHR focused BA. Hard to see it developing into anything other than the niche carrier it is.15 Sep 2011
I see that GuyBetsy, but I would also consider the benefits to the SQ group of having a seat on the board of one of the other major alliances. That would be the only benefit of going with Skyteam.16 Sep 2011
Think this is wishful thinking on the part of VA. Looked at objectively, what would they bring to any alliance ? They have a clutch of cherry picked routes. They operate on a point to point basis, with no supporting network. In truth VA need an alliance much more than any alliance needs VA.
Now, clearly if they are going to pitch up for either Skyteam or Star the smart money would be on Star, however, that is the alliance where they compete with more carriers on the routes they cover, so where is the sense in that ?16 Sep 2011
Pixelmeister, As you rightly say “VS needs an alliance much more than an alliance needs VS.” But VS can offer benefits to an alliance.
For example, VS operates from LHR to S Africa, India and the UAE so that would provide Skyteam representation on these routes. Another example would be LHR-HKG, a route which is dominated by Oneworld and from which, it is rumoured, NZ (the sole Star rep) might withdraw at some stage in the future.16 Sep 2011
Good points; I’d place an outside bet on ScaryTeam as a strategic move on the part of Singapore Airlines, who already dominate Star and have never really entered into the true spirit of an alliance.16 Sep 2011
I would also place a bet on Scary Team. They have most to win from this. Although Virgin Atlantic and Virgin America are only loosely related, I don’t think that United would like to see any move that might strengthen the Virgin Airlines Group given Virgin America’s hub in San Francisco. United has the most to lose from their growth…16 Sep 2011
They’d be better off establishing their own fully functional alliance of Virgin carriers (which is only partly functional even a year after MarkRoberts9 said it would be) and then extend the invitation to other “boutique” airlines.17 Sep 2011
RichHA1, UA and LH already have anti trust immunity and if Virgin joined *A they would have to join this.
My money is on SkyTeam. VS will be a bigger fish in a smaller pond.17 Sep 2011