Delta buys stake in Virgin Atlantic
#11
Another thing to consider is Virgin Atlantic has been losing money for quite sometime. Just a few days ago RB announced that VA would begin local service to compete with British Airways. It's quite possible that DAL will be providing a large portion of the international service from the USA to feed the new domestic service by VA.
My biggest concern isn't the U.S. to LHR flying, it's what happens to Africa, Asia, and Caribbean flying. We could fly virtually all of our European/Carribean customers on Virgin through LHR and we could see alot of our Asia/Africa customers on Virgin flights also. That's where we lose while we focus on just the LHR to U.S. flights.
#12
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 11,989
VA is going to wet lease 3 A319's for the domestic service over there. Not a big operation at this point. They have orders for alot of new widebodies. I know some of those are replacements, but I think they will continue to focus on international flying. The only Delta hubs they currently fly into are NYC and LAX. We gain access to flights from SFO, LAS, MCO, MIA, IAD, BOS, and ORD.
My biggest concern isn't the U.S. to LHR flying, it's what happens to Africa, Asia, and Caribbean flying. We could fly virtually all of our European/Carribean customers on Virgin through LHR and we could see alot of our Asia/Africa customers on Virgin flights also. That's where we lose while we focus on just the LHR to U.S. flights.
My biggest concern isn't the U.S. to LHR flying, it's what happens to Africa, Asia, and Caribbean flying. We could fly virtually all of our European/Carribean customers on Virgin through LHR and we could see alot of our Asia/Africa customers on Virgin flights also. That's where we lose while we focus on just the LHR to U.S. flights.
Originally Posted by Nicely dressed Al
Mon Dieu! Ils sont allés, et achète ce étron d'une action de Singapore Airlines! Maintenant, comment vont-ils payer leur part pour toute l'A380 nous avons à résoudre ce problème? Ne savent-ils pas que nous devons garder peuple français un emploi? Capacité discipline, embrasser mon cul!
#13
Delta Takes 49% Stake in Virgin Atlantic for $360 Million - NYTimes.com
Seems like the deal could require less domestic seats. What have past JV LOAs produced?
Delta has a strong partnership with Air France-KLM that serves many European destinations, but it is not a strong contender in the London market. Delta has nine daily flights to Heathrow from New York, Boston and Atlanta. But it has no direct flights from other top markets like San Francisco, Chicago, Washington, D.C., Miami or Los Angeles, requiring passengers to connect through its other hubs.
Last edited by unit monster; 12-11-2012 at 07:19 AM.
#14
Gets Weekends Off
Joined APC: Jun 2009
Posts: 5,113
The number of slots is finite, so the allocation of flying should probably not be predicated on any growth. This may be a story about shifting assets, where VA perhaps shifts flying away from their East and South, to feed the Transatlantic operation. In this context, there could be a way that VA frees enough slots for the TA flying, in which we would share. You're still playing musical chairs with the VA part of the flying, which equates to some reductions. Then again, they're bleeding cash, and they also have to take appropriate action. I'm not suggesting that we're simply going to waltz in and do all the flying, but I am suggesting we shouldn't fund the solution to VA's structural problems.
Another way to look at it is that our company DID buy 49% of theirs, and this merits some consideration. Since there is no LHR growth on the horizon, that should translate into flying now. This LOA, and the notion of appropriate production balances MUST rest on the present. It cannot be crafted like the VAustralia deal, which grandfathers current (lobsided) ratios AND some extra growth by our partner.
Let's not forget about our existing TA JV with AF/KLM/Alitalia. I don't know how it's written, but it cannot be that any VA JV flying is assessed to our side of those ratios. That is European flying, so I think it's going to feel a little murky. So far, I don't see anything about VA joining Skyteam, so perhaps this deal exists completely outside of the TA JV?
My first objective is to get more info, with a clear focus on getting a proper amount of existing flying (not merely growth), not fund solutions to VA's position at our expense, and not yield anything on the TA JV. I think Bar had some good ideas in terms of tightening compliance standards on that front.
The areas that I'm looking at, when talking to my reps will be:
1) Improve or maintain current ratios with AF/KLM/Alitalia,
2) Not allow bypass of our own Africa/Middle East flying (i.e. we must maintain service levels there). The AF/KLM/Alitalia is going to far in removing point-to-point flrying, and we must learn from that.
3) Not allow bypass of our own UK flying, (i.e. we must maintain service levels there). The AF/KLM/Alitalia is going to far in removing point-to-point flrying, and we must learn from that,
4) Enhance our access to LHR flying NOW, not under some unlikely growth scenario,
5) Collaborate with VA pilots, but let them fund their company's structural problems, as we funded ours (and did we ever!).
Another way to look at it is that our company DID buy 49% of theirs, and this merits some consideration. Since there is no LHR growth on the horizon, that should translate into flying now. This LOA, and the notion of appropriate production balances MUST rest on the present. It cannot be crafted like the VAustralia deal, which grandfathers current (lobsided) ratios AND some extra growth by our partner.
Let's not forget about our existing TA JV with AF/KLM/Alitalia. I don't know how it's written, but it cannot be that any VA JV flying is assessed to our side of those ratios. That is European flying, so I think it's going to feel a little murky. So far, I don't see anything about VA joining Skyteam, so perhaps this deal exists completely outside of the TA JV?
My first objective is to get more info, with a clear focus on getting a proper amount of existing flying (not merely growth), not fund solutions to VA's position at our expense, and not yield anything on the TA JV. I think Bar had some good ideas in terms of tightening compliance standards on that front.
The areas that I'm looking at, when talking to my reps will be:
1) Improve or maintain current ratios with AF/KLM/Alitalia,
2) Not allow bypass of our own Africa/Middle East flying (i.e. we must maintain service levels there). The AF/KLM/Alitalia is going to far in removing point-to-point flrying, and we must learn from that.
3) Not allow bypass of our own UK flying, (i.e. we must maintain service levels there). The AF/KLM/Alitalia is going to far in removing point-to-point flrying, and we must learn from that,
4) Enhance our access to LHR flying NOW, not under some unlikely growth scenario,
5) Collaborate with VA pilots, but let them fund their company's structural problems, as we funded ours (and did we ever!).
Last edited by Sink r8; 12-11-2012 at 07:30 AM. Reason: Trying to clarify my rambling. How am I doing?
#15
Delta Takes 49% Stake in Virgin Atlantic for $360 Million - NYTimes.com
Seems like the deal could require less domestic seats. What have past JV LOAs produced in the past?
Seems like the deal could require less domestic seats. What have past JV LOAs produced in the past?
#16
VA is going to wet lease 3 A319's for the domestic service over there. Not a big operation at this point. They have orders for alot of new widebodies. I know some of those are replacements, but I think they will continue to focus on international flying. The only Delta hubs they currently fly into are NYC and LAX. We gain access to flights from SFO, LAS, MCO, MIA, IAD, BOS, and ORD.
My biggest concern isn't the U.S. to LHR flying, it's what happens to Africa, Asia, and Caribbean flying. We could fly virtually all of our European/Carribean customers on Virgin through LHR and we could see alot of our Asia/Africa customers on Virgin flights also. That's where we lose while we focus on just the LHR to U.S. flights.
My biggest concern isn't the U.S. to LHR flying, it's what happens to Africa, Asia, and Caribbean flying. We could fly virtually all of our European/Carribean customers on Virgin through LHR and we could see alot of our Asia/Africa customers on Virgin flights also. That's where we lose while we focus on just the LHR to U.S. flights.
#18
Gets Weekends Off
Joined APC: Jun 2009
Posts: 5,113
So LOS gets dropped.
I do agree with you that it's too early to hyperventilate over this. But it's definitely not too early to get really, really curious about it. This is a big deal.
Last edited by Sink r8; 12-11-2012 at 07:46 AM.
#19
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 11,989
Anyone else feel like Richard Anderson is trying out for a job on a British version of "The Apprentice" working for Richard Branson?
#20
Gets Weekends Off
Joined APC: Jun 2009
Posts: 5,113
Interesting when you look at their route map... LAS, admittedly a lower-yield destination, is served from LGW. BA, with 50% of LHR slots, can afford LAS from LHR.
I wonder if VA has enough LHR slots (5%) for themselves.
I wonder if VA has enough LHR slots (5%) for themselves.
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