VS and One World

A year ago I would have thought any connection between VS and OW almost unthinkable but not now.
Previously their list of airline partners read like a directory of *A but that has all changed. BMI are no longer on the list, Malaysia are about to join OW and Qatar will join OW next year. If AA and USAir (the remaining US partner) merge then that is likely to be a gain for OW . So what will VS do - relinquish these partnerships or take a less anti-OW stance (as there is not one single OW partner they must have made a conscious decision).

Whilst Virgin have now integrated their own alliance (but need to work on their inter-Virgin codeshares) they cannot afford to lose too many partners.
Maybe we are getting closer to an official 4th alliance with all the Virgin brands plus a major middle East carrier - such as Ethiad who are stake building in VA currently).

I never tire of this subject although I fear many members here will have heard enough !

Maybe we are getting closer to an official 4th alliance with all the Virgin brands plus a major middle East carrier - such as Ethiad who are stake building in VA currently).

Interesting thought, definitely a possibility in the future. VS joining in with OneWorld will never happen as long as the competition between them and BA is so strong B)

Etihad would def help to plug some gaps but there would still be holes... unless of course Virgin Europe becomes a fourth Virgin Airline Also is no one else thinking that someone should be investing more in the developing South American markets??? Maybe there is not the demand I thought there would be by now. ii)

Etihad have bought into another couple of airlines spanning it's reach.. Air Seychelles (yeh that famous one.. all have to start somewhere) Air France(lure them away from Skyteam?), Air Berlin(lure this lot away from Oneworld?), even Aer Lingus.... A tie up with VS and their partner airlines would make for a rather beneficial alliance - now what to do with the SQ 49% stake?!? Basically VS still sitting in the middle, ha.

Anyone fancy the likelihood of them ultimately joining in with star alliance alongside SQ?

I never tire of this subject although I fear many members here will have heard enough !

Good thoughts and a good discussion point. Never tiring y)

Me neither ): . While I don't think VS joining OW is likely in a bazillion years, we should note that VS / BA relations have always existed in several areas such as flight connections and down station engineering agreements and the like (how many times have you seen an engineer on a VS plane wearing a BA tunic???).

What's important as a VS regular flyer is to have a good set of partners for earning redemptions and TPs, principally a US one and I've never viewed US themselves as qualifying, CO did. Recognition of FF status would be a bonus. Now that is normally done in an alliance, but could be done with Virgin branded airlines and some smart thinking with others, like EY.

So it doesn't matter to me if mega alliances are the way, or whether smart thinking partnerships are (although I think the latter better) - I want options to connect to that benefit me .

A short haul EU partner is an absolute must IMO, as people who fly a mix of short and long haul will naturally gravitate to BA exec club.

Also, VS appear to be massively missing the boat on S America.

Personally living in Spain OW would be brilliant At the present time there are no flights that link in with VS for example it's cheaper to fly from ALC via LHR to the carribean or Dubai with OW than flying direct from LHR with VS. I am sure that its the choice or not the product that gives OW the edge and long term VS would benefit from a strong alliance partner in the EU

Qatar joined OW a few days ago!

Qatar joined OW a few days ago!

sorry to be picky but they announced their intention to join within the next 12-18 months.

Etihad have bought into another couple of airlines spanning it's reach.. Air Seychelles (yeh that famous one.. all have to start somewhere) Air France(lure them away from Skyteamof them ultimately joining in with star alliance alongside SQ?

One small point: Etihad have not bought into Air France-KLM. They have announced a codeshare relationship (partly to steal the thunder from the Qatar-Oneworld announcement) with a view to deeper co-operation.

I’m surprised nothing has been announced between Etihad and Virgin. I can only assume that Singapore Airlines would not agree to it because of the competition they face from Middle Eastern carriers. That said, I’m also surprised at the lack of deeper co-operation between SQ and VS.

But the point is still valid: partnerships are the way forward in building broader networks without committing large amounts of capital and benefiting from the distribution networks and customer base of your partners.

Qatar joined OW a few days ago!

sorry to be picky but they announced their intention to join within the next 12-18 months.

Pardon! You're correct.

One small point: Etihad have not bought into Air France-KLM.

My apologies was on a moving train at the time, so clearly misread the Financial Times article :#

You are right it is surprising that Etihad have not tried anything with VS... although I am fairly certain the 49% stake held by SQ def has something to do with it.

If VS are not pursuing an active role in StarAlliance, these SQ shares will stand in the way of nearly everything else, can't be backing potential competition. Although, VS could go about creating a Virgin group alliance. Etihad and any other airlines could actively partner with Virgin Australia and Virgin America (..and Virgin Europe?!?) i.e airlines SQ has no stake in whatsoever and then create an alliance with VS joining the fold.. too sneaky? Think SQ will cry foul

What it must be like to be stuck between a rock and a hard place...

To be fair though, as slinky says, the main beneficiaries will be FF for mileage earning and loyalty recognition. So come on VS, get sneaky ):

On a flight last year I was chatting to the crew and the topic of alliances came up. They said (and this was a complete surprise to me) that the rumours were that OW was the likely choice for VS. I was amazed by this at the time, but the more I think about it the less utterly implausible it becomes. I still don't think it will happen, though, especially now that the Virgin mini-alliance is strengthening.

I am sure it is just a matter of time before SQ offload their VS shares. It is just a question of price. They bought at the top of the market when it suited their company strategy (they also bought into ANZ at the time and two years later offloaded that when there was a new SQ boss).

It has not been a great investment for them - I think they paid £600m and I doubt they would see half of that now. However, at some point they will want to move on as there is clearly very little 'synergy' between them. I always have the feeling VS is a sort of unloved step child.

Just suppose Ethiad made SQ an offer they couldn't refuse - wouldn't that be fun !