Originally Posted by
georgetg
Big picture that seems like the way it will go.
Since Virgin needs to restructure, there will be some effort on rationalizing the widebody fleet and refocusing on standing up a new narrowbody fleet that does the intra-Europe feed.
Virgin has indicated it is in the process of joining SkyTeam.
I still imagine DAL will integrate the VA flying into the existing Transatlantic JV. I doubt AF/KLM/AZ will let DAL carve the most lucrative Transatlantic market out of the existing profit-sharing agreement without a fight.
Plug in a few more dots and I see a way to have a transaction not unlike the 717/76-seater/50-seater deal, but across multiple continents, carriers and fleets...
This deal could work really well for Delta and if we push for the right things, Delta pilots.
Cheers
George
I agree: I can't imagine AF-KLM/AZ sitting still. AZ had to come out of the AF-KLM side of capacity. Why would we be spared the same with VA?
One solution I see is some kind of follow-on transaction with AF-KLM getting a piece of of VA. Maybe concurrent with / as a condition of, VA joining Skyteam (I'm pretty sure AF-KLM would have veto power). So maybe with a stipulation VA can only feed UK flying into LHR. Maybe with a face-saving arrangement on Virgin America, and a discrete face-saving minor role for Branson. Let's face it, the guy is a very marginal airline executive. I can't imagine our board or investors want to hang their hat on his restraint and wisdom.
Either way, there are a lot of pieces yet to be placed on the table, including the EASK ratios already in place, and the potential non-compliance with those. Add a potential addition of LCC to oneworld, and even our own FTDT (how many pilots does it take to fly to LHR at Delta, and at VA?)...
Could be a lot of wheeling-and-dealing here.
I just shivered a little. Is there a draft in here?