AF/KL/DL and EY both looking at VS

A story is breaking on the AP wire that both AF/KL/DL and EY are looking very heavily into acquiring VS. Apparently AF/KL/DL have instructed Meryl Lynch to advise and EY are using Goldman Sachs.

I guess this is nothing really new however these stories seem to be gathering more momentum of late.

Any buyout by EY would be very interesting. EY have of course just started a close relationship with DJ and are currently non-alligned in the alliance world.

As I have said in the past an AF/KL/DL deal for VS would be a very good move for the airline. It will meant they can join an alliance where they will be more than just a number (they will give Skyteam an increased LHR presence it so craves), will give them access to the huge DL network in the US and also assist with possible closer links with AF's partner airlines Cityjet and BE which could be useful for any kind of feed link ins (granted Cityjey and BE dont operate into LHR but there is potential).

Link to article: http://www.google.com/hostednews/ukpres ... 205992313A

Funny old thing - I was at a VS FF "do" a few days back in London and the rumour/gossip by the Champagne fountain (alright the free bar) was that SRB was pulling out for ventures new. I overheard but couldnt contribute as this was the first I had heard (for a while anyway - seems to be a regular rumour).

Coincidence ?? Well only time will tell I guess ........

interesting. I know there has been talk of SRB looking at the options and that he might offload his majority stake. IF that happens, then where would that leave Virgin, would the brand disappear if brought by another airline?

There's a big difference between being acquired, merging and joining SkyTeam. I can't quite see an all-out acquisition happening but a AF-KLM like merger could happen and joining SkyTeam would be great. Whatever happens, I think the brand is too valuable to be lost. I wonder what would happen to FC miles and my Au card if this happens?

IF that happens, then where would that leave Virgin, would the brand disappear if brought by another airline?

Nope- you would keep the brand. It is one of the most well known brands within the market it operates.

I can't quite see an all-out acquisition happening but a AF-KLM like merger could happen and joining SkyTeam would be great.

An acquisition could well happen if whoever buys can get SQ and SRB to give them their share. I dont personally see an AF/KL type merger happening at all- in order for their to be a merger all carriers involved would need to see themselves as being equal. There is no way that VS is equal to either AF or KL. Of course, any approach could be a friendly take over which always leads to the press branding it a "merger". Any approach by AF/KL would be them acquiring a stake. In much the same way that SQ acquired a stake in VS. The question then is exactly how much that stake would be.

I wonder what would happen to FC miles and my Au card if this happens?

It all depends. If it is VS joining Skyteam then there would possibly be some devaluing of miles and increased competition for reward seats. If it is a merger/acquisition then you could see FC scrapped and the FFP become part of Flying Blue. AF/KL did this when they merged and history shows us that when AF/KL take a stake in an airline they always switch the FFP to Flying Blue (Kenya Airways and Air Calin being two examples).

[Scrooge]

Any buyout by EY would be very interesting. EY have of course just started a close relationship with DJ and are currently non-alligned in the alliance world.

It would be more than interesting, it would be illegal and stopped by the EU, they can buy SQ's 49%, but that's it.

AF/KL could buy 66% and DL 33% however.

Any buyout by EY would be very interesting. EY have of course just started a close relationship with DJ and are currently non-alligned in the alliance world.

It would be more than interesting, it would be illegal and stopped by the EU, they can buy SQ's 49%, but that's it.

Yes very true. Though there are ways around it.

Yes very true. Though there are ways around it.

The EU is pretty harsh on this - what ways do you refer to?