Delta considering bid for SQ's stake in VS

One of the main articles in today's Sunday Times says that Delta are in negotiations to buy SQ's stake in VS and that if successful KLM-AF will then buy a minority stake from SRB. VS would then become part of Sky Team.

Link below (although there is a paywall)

http://www.thesundaytimes.co.uk/sto/bus ... 170291.ece

Would it be good for VA?

Which I read with interest while having my egg and bacon ... is it real or conjecture because there's been a lot of that in the last couple of years. Time will tell.

However, KLM is not my idea of a good long haul airline, it's business seat is woeful by VS standards, lounges are poor, only recently has KLM installed PTVs across its LH fleet, it's 10 across in Y on 777s etc. Having VS run by DL / KLM would be the nail in the coffin of what made VS different IMO.

However, KLM is not my idea of a good long haul airline, it's business seat is woeful by VS standards, lounges are poor, only recently has KLM installed PTVs across its LH fleet, it's 10 across in Y on 777s etc. Having VS run by DL / KLM would be the nail in the coffin of what made VS different IMO.

I think KLM is much better than VS longhaul in economy. The food offering is better & bigger & more drinks runs.

As for everything else VS is far superior - ie lounges, business class, premium ecomomy, frequent flyer program.

I believe Delta were previoulsy interested in the stake and can't help to think now VS have these additional LHR slots DL and AF/KL may want to get VS into skyteam before STAR.

Hopefully somethieng eventuates one way or the other.

Have to agree with the comments regarding the excellent KLM long-haul economy service after a recent good trip with them from Amsterdam to Entebbe on an A330-200, though not having done a VS economy flight for quite some time I can't make my own comparisons other than to comment on what I saw with KLM.

Would it be good for VA?

I can't help but think at times whether some sort of partnership or takeover with another major global carrier is exactly what VS needs in order to remain competitive and grow. I suspect the bmi takeover by BA has changed things somewhat as far as LHR is concerned.

and now in the Guardian too...
http://www.guardian.co.uk/business/2012 ... CMP=twt_fd

Jonathan

... if successful KLM-AF will then buy a minority stake from SRB. VS would then become part of Sky Team.

Whilst it makes sense for the VS/DL tie up I cannot see SRB selling any of his shares as that will take him below 51% and that is not his style. If KLM get any shares they will need to get them from DL which may make the whole thing more appealing to the competition authorities.

VS would be a great and much needed jewel in the sky team group.

Depends on the state of VS finances. He jumped out of Virgin Megastores at the right time! But VS is his baby.

I hope they call it something sensible because the combination of 'V' and 'D' (fir Virgin and Delta) have some unfortunate medical connotations !

I hope they call it something sensible because the combination of 'V' and 'D' (fir Virgin and Delta) have some unfortunate medical connotations !

My father wanted to call Vincent after his father followed by what (thanks to my mothers intervention) is my first name Dominic, I can't imagine how many years of torment I would have endured had she not intervened.

DV Hull it is then.

[honey lamb]

I hope they call it something sensible because the combination of 'V' and 'D' (fir Virgin and Delta) have some unfortunate medical connotations !

Bear in mind though, that DV can mean "Deo volente" = "God willing"

If Delta do become involved, will VS have to reinquish it's fight to Cuba?

Isn't this an old news story though. I am sure I read all this about Delta well over a year ago on here and I am certain it was reported on Sky.

I wonder if talks have been going on for a long time and this is the last minute PR to flush out any late or hesitant bidders.

Sounds more like Singapore want out, as VS have positioned themselves into a corner with strategy...

Just seen this article - if its true it looks like we will be a part of larger FF group (potentially) -SkyMiles :0

http://www.bbc.co.uk/news/business-20576420

Already being discussed in another thread. Can a mod please do the necessary ?

My bad?

Just the third thread on the same subject lol

Just read this now..

http://www.travelweekly.co.uk/Articles/ ... antic.html

[Neil]

Threads merged

I personally prefer the idea of a North Atlantic joint venture... a North Atlantic alliance, to fight off the invaders from the South ): and keep watch on the boundaries to the East

http://www.ft.com/cms/s/0/193efefa-3d5b ... z2E5db4izv

Just read this now..

http://www.travelweekly.co.uk/Articles/ ... antic.html

Huh, hadn't thought about that.... would VS alliance not be losing a massive asset if they cut back on their staff? I think this article is getting a little ahead of itself.

Incompetent and disposible.. no;
Inconsistent.. maybe ii) ;
Helpful, courteous and always willing to go that extra mile .. most definitely

It would not be in any potential investors interests to start firing the staff or making people redundant. It may save a few quid in the short run, but big picture wise they will watch as pax and FF abandon ship, therefore unlikely to happen.

Although do we think that if Delta and/or AF-KLM did invest, that they would take an active roll in running VS? I think Delta would, they would def want to funnel people into their hub at ATL, and given their ops at JFK would welcome the VS feed there.. Not sure about the Air France connection though.

[Scrooge]

Which I read with interest while having my egg and bacon ... is it real or conjecture because there's been a lot of that in the last couple of years. Time will tell.

However, KLM is not my idea of a good long haul airline, it's business seat is woeful by VS standards, lounges are poor, only recently has KLM installed PTVs across its LH fleet, it's 10 across in Y on 777s etc. Having VS run by DL / KLM would be the nail in the coffin of what made VS different IMO.

KLM is primarily a leisure airline, they cater to the holiday crowds, their product and pricing reflect this...This are also the profitable part of AF/KL.

Whilst it makes sense for the VS/DL tie up I cannot see SRB selling any of his shares as that will take him below 51% and that is not his style. If KLM get any shares they will need to get them from DL which may make the whole thing more appealing to the competition authorities.

VS would be a great and much needed jewel in the sky team group.

I cannot see DL spending $600m on a non controlling stock purchase, however, if SRB can be convinced to sell part of his 51% to AF/KL then who knows.

From my view point, it's not so much VS, but the large number of LHR slots that DL is looking at, with that said, a VS/DL joint venture would be able to run an hourly shuttle service from JFK in much the same way as BA/AA are doing now.

It would also fill in a lot of blanks for the DL FF people, the US West Coast would finally get non stop service to LHR.

If Delta do become involved, will VS have to reinquish it's fight to Cuba?

Nope, VS is a UK based airline, having DL as an investor means nothing, in much the same way as AA to a large share holding in AC years ago, it did not stop AC from flying to Cuba.

Sounds more like Singapore want out, as VS have positioned themselves into a corner with strategy...

SQ have wanted out for years, they just couldn't find anyone willing to spend the money to take a non controlling position in VS.

Just seen this article - if its true it looks like we will be a part of larger FF group (potentially) -SkyMiles :0

http://www.bbc.co.uk/news/business-20576420

Yep, a few years ago VS and DL FF's were allowed to book on each others airlines, the results were nearly zero availability for VS flights, especially from the US west coast.

Threads merged

About time you did something.

I personally prefer the idea of a North Atlantic joint venture... a North Atlantic alliance, to fight off the invaders from the South ): and keep watch on the boundaries to the East

http://www.ft.com/cms/s/0/193efefa-3d5b ... z2E5db4izv

Huh, hadn't thought about that.... would VS alliance not be losing a massive asset if they cut back on their staff? I think this article is getting a little ahead of itself.

Incompetent and disposible.. no;
Inconsistent.. maybe ii) ;
Helpful, courteous and always willing to go that extra mile .. most definitely

It would not be in any potential investors interests to start firing the staff or making people redundant. It may save a few quid in the short run, but big picture wise they will watch as pax and FF abandon ship, therefore unlikely to happen.

Although do we think that if Delta and/or AF-KLM did invest, that they would take an active roll in running VS? I think Delta would, they would def want to funnel people into their hub at ATL, and given their ops at JFK would welcome the VS feed there.. Not sure about the Air France connection though.

Where to start...Ok, as a 49% investor DL will have no say in staffing. They need AF/KL to get 2% of VS, then they can start to flex their muscles somewhat.

If/when DL and VS tie up their FF programs DL FF's will look at it and laugh, the majority of them will be unwilling to pay to fuel surcharge, the medallion holder will throw their toys from their prams at the idea.

IMHO, VS has been pushing a lot of it's FF out themselves, why ? who knows, but they have certainly done a good job of pushing people I know away from them.

On top of that, in most ways the DL J product is superior to the VS product, the only place where VS is better is the W cabin.

As I said above, DL/VS could easily start an hourly shuttle on the JK/LHR route.

I cannot see DL spending $600m on a non controlling stock purchase, however, if SRB can be convinced to sell part of his 51% to AF/KL then who knows.

Just because that is what SQ paid does not mean that is what they will sell for.
Look at LH and BMI.

Isn't there already a tie up with VA and DL ?
Wonder where it would leave VX though.

I knew I had read this story a long time ago - 2 years in fact

http://news.sky.com/story/825115/virgin ... e-up-talks

On top of that, in most ways the DL J product is superior to the VS product, the only place where VS is better is the W cabin.

On that I very much disagree. Yes the seat is now comparable, food is generally good and so is the IFE. But the J product as a whole is way behind VS when you consider the whole experience - I fear that's where VS would suffer because I believe that for VS it's more important in the ranking of priorities than for an airline the size of DL who can't replicate it.