DAL & KAL enter in transpacific JV

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03-31-2017 | 10:26 AM

#21

MikeF16

Otto

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From: Turkish Pile Driver

Quote:

Originally Posted by sailingfun

https://www.ft.com/content/dac5bc0e-...9-02899e8bd9d1

link doesn't work unless you pay. summary?

03-31-2017 | 11:37 AM

#22

sailingfun

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Quote:

Originally Posted by MikeF16

link doesn't work unless you pay. summary?

KAL bought a shipping company in 2014. I think it's one of the largest. They are going broke. Airline is keeping them afloat no pun intended. Different family members owning different pieces of the pie and infighting.

03-31-2017 | 01:11 PM

#23

notEnuf

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From: ir.delta.com

Quote:

Originally Posted by sailingfun

And now Delta is bailing them out. This is one JV that could be a huge flop. KAL and CEA will flood the Asia market in hopes of the DAL relationship paying off. This strategy is going to backfire. Add in the ME3 owned and supported Indian and Asian airlines and we will pull out of city after city in Asia.

03-31-2017 | 01:29 PM

#24

gloopy

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From: window seat

Quote:

Originally Posted by notEnuf

Its OK though cause they can still bring us the pax in their 380s.

03-31-2017 | 05:09 PM

#25

Hank Kingsley

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From: Power top

Synergy, we load Trainer jet fuel in their ships, BAM, profit sharing goes up. Sailing, my glass is half full.

03-31-2017 | 05:23 PM

#26

sailingfun

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Quote:

Originally Posted by notEnuf

I am not sure how getting from them what we have been asking for the last couple of years is bailing them out. If you make an offer on a car that the dealer refuses and they call you later and accept it do you consider it bailing them out?

03-31-2017 | 06:33 PM

#27

notEnuf

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From: ir.delta.com

Quote:

Originally Posted by sailingfun

A JV is far from an arms length vehicle transaction. If you want an analogy to dumb it down try something more like RIM and the blackberry. The industry has passed them by and the only value they retain is the saleable portions of the company. In this case 49% should suffice if the Delta turnaround team gets their way.

See VA and GOL restructuring.

03-31-2017 | 07:28 PM

#28

gloopy

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From: window seat

Quote:

Originally Posted by notEnuf

The industry has passed them by and the only value they retain is the saleable portions of the company.

Agreed, but which will win the day, the company's ruthless ability to get the best deal possible, or the desire to give as much of everything to any non US airline as possible? Or maybe those two are the same things?

We should get the majority in the JV, but we all know we won't.

03-31-2017 | 09:46 PM

#29

Bucking Bar

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From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler

A metal neutral JV is a merger
We have no 5th freedom rights from Korea
The penalty for violating our Pacific protections is literally pocket change, except for the political optics with the pilot group
1 E. 2. doesn't help, we come nowhere close to selling that many tickets

Note what is missing from the last Scope Compliance Report. I am told it will be updated.

04-01-2017 | 09:46 AM

#30

gloopy

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From: window seat

Quote:

Originally Posted by Bucking Bar

A metal neutral JV is a merger
We have no 5th freedom rights from Korea
The penalty for violating our Pacific protections is literally pocket change, except for the political optics with the pilot group
1 E. 2. doesn't help, we come nowhere close to selling that many tickets

Note what is missing from the last Scope Compliance Report. I am told it will be updated.

So where do you see this going?

It sure seems likely that we'll get hosed while lavishing mass quantities of money and support on another "partner" only to singlehandedly save their bacon (again) so they end up with a sizable majority of the capacity.