V-Flyer

I hear a rumor some weeks ago that Singapore Airlines are willing to consider offers on their 49% stake in Virgin Atlantic. It appears that rumor has become apparent to the media - see the below article.

http://www.telegraph.co.uk/finance/news ... antic.html

Had anyone heard anything new regarding this? I make the assumption that this would affect the benefits with SQ for Gold Card holders. However, this does mean a new alliance could open up.....

I've seen/heard various theories and rumours about this.

The strongest (and most likely imho) is for LH to acquire the SQ-owned 49% and for VS to then join Star Alliance, and possibly merge with BMI - thus providing short-haul feed at LHR.

I've also heard that BA are interested in acquiring VS - purely for the LHR slots. I really hope that VS don't get bought out, as they're a great airline (don't know if I've mentioned that before ) with a strong brand.

The best scenario, I think, would be for LH to acquire the SQ stake, and for VS to join Star - they already codeshare with various Star members so it would be ideal. But hey, I'm no airline CEO

Regards,
GB

The rumor mill and discussions about SQ letting go of 49% VS has gone on for quite awhile. I would agree that it would be the best scenario if LH acquired VS such that a merger would occur between VS and BD. That would bring VS into *A and would also keep VS's relationship with SQ through *A. Note that VS already has a full codeshare operation with BD in certain European cities, with flights using a VS flight number on BD metal and crews, LH issued boarding passes, and LH magazines and duty free shop brochures in the seat pockets of BD aircraft.

I heard an entirely speculative suggestion that the outcome would be......

That the "business" part of the business - so that's primarily the LHR routes - would end up owned by Lufthansa or another "Star" member and become part of "Star".

And that the "Holiday" part of the business - so that's LGW and the provincial routes - would be hived off as a holiday company and operate much as Thomson/Tui (for example) do with seats sold primarily as part of a package, but with some "flight only" availability. In due time, it might even be swallowed by such a company as Tui.

This saga has dragged on for such a long time now, I hope it is resolved soon - whatever the outcome. 8D

Nick

I can't see anything happening until the pilot pay issue has been resolved and other industrial relations issues sorted out (the pilots grievenaces are not just about pay but include duty hours and rest days and generaly how badly they are treated by VS Management (or pasrts of it)

Also the upgrade of the LGW fleet probably needs finishing too so that if anything goes awry with it then its VS that gets the blame and not the new owners.

Any news of VS joining an alliance would be good news in my books; but I'm a lowly traveller, what do I know eh? lol.

I really hope VS ends up being part of the Star Alliance, and I love tonywestsider's post. A merger between VS & BD would be so fantastic. I can see it now - a small fleet of VS-painted A319 with a nice SA logo stationed in BHD, it will be so beautiful. Though it would be a shame to see the bmi livery go but no love lost there. Plus in LHR, they could integrate the ops from T3 and T1 to T2, once the new T2/Heathrow East Terminal is finished.

Though whatever happens, I hope the Holidays part of the business don't get shaved off, it's how many young people got into VS in the first place! It's their first Virgin experience.

The article refers to AA being interested in VS. I cant envisage BA and VS in the same alliance so I think that is a non starter plus there are already several alliances with other US airlines.

Malaysian are joining OW next year so that probably removes that code share as well.

My only worry - is *A too big and VS would be lost within in.