Originally Posted by
Denny Crane
Would buying that much of VA require some scope relief on our part????
Here is part of the definition of "Control" from Section 1.
Control” for the purposes of Section 1, will exist by entity A over entity B, only if A,
whether directly or indirectly through the control of other entities:
a. owns securities that constitute and/or are exchangeable into, exercisable for or
convertible into more than:
1) 30 percent (49 percent with respect to the Company’s interest in a foreign air
carrier) of B’s outstanding common stock, or if stock in addition to common stock
has voting power,
Denny
Thus the easy out revenue JV solution that gets you 80% of the benefit at 20% of the cost....(give or take)
The PWA need to be final to make corporate decision governed by Section 1. Having that in hand is worth a lot because it helps leverage Delta's
early-mover status.
The new trend is to set up non-alliance codeshare and JV agreements and it's growing as with most things, the early birds get first pick...
I can't see how Delta wouldn't be a player.
Cheers
George