Delta Deal Announced

[Mods I suggest this is important enough for its own thread, merge if you disagree?]

Delta has agreed to buy 49% of VS from SQ, see here.

SRB retains 51% (great news), joint venture across the pond, reciprocal FF benefits, shared access to lounges (poo!).

Let more flow in as the news settles and let's see what VS has to say!

This is just what VS needs in my opinion -great news!

They are also considering entry into SkyTeam but isn't part of the deal just yet.

I wonder if BA will start a No Way DL/VS campaign?

there goes all the reward seats for us loyal vs flyers swallowed up by Delta/sky teams massive FF base

So, (in the medium/long term) will VS move to T4? Nearly zero chance of moving to T2 after this deal and BA getting space in T2.
Or DL could move to T3 when Air Canada have moved out?

So, (in the medium/long term) will VS move to T4? Nearly zero chance of moving to T2 after this deal and BA getting space in T2.
Or DL could move to T3 when Air Canada have moved out?

Options at Heathrow are being looked at but nothing concrete at the moment. Delta opens a new area at JFK T4 next year so they'll be in the same space there.

Hmmmn, time to buy some reward seats. Are Delta business class reward seats worth the bother?

Are they saying that Delta will give FF benefits, so will be able to book on their flights now?

Looking at Skyteam, not much in there I'd typically fly though...

Also with Singapore's reward flights and points earning gone (did Singapore's reward seat ever exist, or we fictional like Air NZ?)

This deal needs to be approved by the regulators so won't be until around this time next year before anything significant happens.

How many Delta FF's are going to pay VS's fuel surcharge for a reward flight? Unless they won't be charged the surcharge, I don't see VS award availability being affected too much.

How many Delta FF's are going to pay VS's fuel surcharge for a reward flight? Unless they won't be charged the surcharge, I don't see VS award availability being affected too much.

Absolutely y) . We mugs are used to it, the 'Yanks' are not ): .

Very, very interesting.

The huge positive I can see from this is that VS will finally come to terms with connecting flights in to the US. I'm fairly sure that we'll see VS and DL flight schedules tweaked to allow smoother connectivity at hubs like JFK and BOS. The transfer process around interlining bags and printing BP's should become much smoother too.

We may also see a couple of routes dropped/added. For example, I can't see Chicago surviving as it's not a DL hub.

The things that concern me are:
- Preserving the world-class Clubhouse/UC Wing experience.
- Reward flight availability.
- Hope that VS' service doesn't fall to the level of a US carrier.

Maybe this will also give VS the feed it needs for A380's to enter the fleet?

More on Virgin.com

http://www.virgin.com/travel/news/delta ... artnership

What about benefits for KLM/AF Gold Card holders?

Wonder if VS are to join SkyTeam?

That has to be the plan ... but don't forget at Heathrow we're relatively safe, AF / DL / KLM operate out of T4 and until that changes there should be minimal impact, at other airports it depends where AF / KLM operate from, for example at SFO and IAD its the same terminal ... DL however doesn't share the same terminal with VS at any airport I can think of ...

What about benefits for KLM/AF Gold Card holders?

Wonder if VS are to join SkyTeam?

That has to be the plan ... but don't forget at Heathrow we're relatively safe, AF / DL / KLM operate out of T4 and until that changes there should be minimal impact, at other airports it depends where AF / KLM operate from, for example at SFO and IAD its the same terminal ... DL however doesn't share the same terminal with VS at any airport I can think of ...

JFK from May.

Delta is talking on a large part of T4 in JFK. However, correct me if I'm wrong, but I think they'll still be spread over T2 and T3 (one of which is about to be demolished), so not all international DL flights will be from T4.

Another major positive of this is that VS Flying Club members (Golds I assume) will now finally have access to a set of lounges when flying domestic in the US.

So, (in the medium/long term) will VS move to T4? Nearly zero chance of moving to T2 after this deal and BA getting space in T2.
Or DL could move to T3 when Air Canada have moved out?

I wouldn't rule T2 out - especially as it would mean VS could operate their long and short haul network from 1 terminal.

AA & BA have a JV but a still operate out of 2 terminals at LHR.

I think this is great news... finally a shareholder that is able to offer something to benefit VS!

Can anyone tell us how good/bad, profitable/unprofitable (historically) and airline Delta is ?

thanks

David

So, (in the medium/long term) will VS move to T4? Nearly zero chance of moving to T2 after this deal and BA getting space in T2.
Or DL could move to T3 when Air Canada have moved out?

I wouldn't rule T2 out - especially as it would mean VS could operate their long and short haul network from 1 terminal.

AA & BA have a JV but a still operate out of 2 terminals at LHR.

I haven't ruled it out, just very unlikely. VS threw their toys out the pram over some T2 negotiations, so arent best of friends with LHR, BA will now use T2 until T5E is built, when AA should move in too. Now VS is much closer to SkyTeam and T2 will be *A (plus BA...). Still it is always possible that VS move into T2.

In the long long term it might be inevitable once T1 and T3 are demolished, leaving T2, T4 and T5 (assuming no T6)

Hope i'm not going to sound stupid in saying this but as someone who doesn't know much about mergers in this industry what will this mean for customers?... will there be a join product/cabin/liverly such as the Continental/United merger? or will it just be like with BA and Iberia where they just have codeshare services?

So, (in the medium/long term) will VS move to T4? Nearly zero chance of moving to T2 after this deal and BA getting space in T2.
Or DL could move to T3 when Air Canada have moved out?

Don't SQ and VS share check-in now at T3 ?
Surely SQ can move to T1 (star) leaving counters for DL.

Another major positive of this is that VS Flying Club members (Golds I assume) will now finally have access to a set of lounges when flying domestic in the US.

I think it is only the very top tier of DL that get comp lounge access so I doubt VS Gold will do that. The DL equivalent to VS gold does not get access.

It will be interesting to se how this affects partnerships - especially with the many *A partners.

It is assumed but not guaranteed that VS will join SkyTeam but when SQ help 49% they never joined *A so nothing if definite.

So does this mean that VS can now plan to launch a LHR-Singapore service. Presumably without its shareholding SQ will not be able to block a move for such a service and as I understand it there is spare capacity at SIN.

With Qantas re-routing its services via Dubai, we now lack an airline with decent Premium Economy and Ecomony cabin on this route.

Qantas' A380s always seemed full on LHR-SIN route with a lot joining/leaving at SIN. Maybe a route worthy of consideration? hasn't SRB stated before that he would like to fly LHR-SIN?

I haven't ruled it out, just very unlikely. VS threw their toys out the pram over some T2 negotiations, so arent best of friends with LHR, BA will now use T2 until T5E is built, when AA should move in too. Now VS is much closer to SkyTeam and T2 will be *A (plus BA...). Still it is always possible that VS move into T2.

In the long long term it might be inevitable once T1 and T3 are demolished, leaving T2, T4 and T5 (assuming no T6)

Will be interesting to see what happens - VS under one roof is desirable now with short haul, but only T2 presented a solution to that, now BA is moving there is there no room for VS? Otherwise perhaps it'll remain the status quo until T3 is demolished (OT but wonder whether VS domestic will have lounge access options in T1)?

JFK from May.

Technically so but don't forget VS is now in the A pier and DL is in the B pier, separate security, so still no contamination from DL elites ): .

Can anyone tell us how good/bad, profitable/unprofitable (historically) and airline Delta is ?

Try here , net income of >$1bn in Q3 2012 alone. DL is one of the more successful US airlines and seems to be doing very well.

Hope i'm not going to sound stupid in saying this but as someone who doesn't know much about mergers in this industry what will this mean for customers?... will there be a join product/cabin/liverly such as the Continental/United merger? or will it just be like with BA and Iberia where they just have codeshare services?

Doubt it, just as BA and IB and AA continue to have different products so will DL and VS. It's not a takeover (sorry merger) as CO and UA was.

It will be interesting to se how this affects partnerships - especially with the many *A partners.

It is assumed but not guaranteed that VS will join SkyTeam but when SQ help 49% they never joined *A so nothing if definite.

Indeed - perhaps no change there after all other odd partnerships exist, but you have to believe that VS will join ST and one by one *A will go. Was it ever that useful anyway (apart from TP runs on SQ)?

So does this mean that VS can now plan to launch a LHR-Singapore service ...

Although not privy to the detail it was always suggested that SQ's share and agreement prevented VS from going to many places in Asia including SIN. The answer to that question will come down to slots, aircraft availability, and priorities!


As it sinks in I think it's a very good thing, great shot in the arm for VS, a longer term strategy for growth, and retention of the brand. Yes the worries are clubhouse contamination, redemptions disappearing (with the caveat the US fliers think our fuel surcharges are barmy), and some loss of VS style and flavour, but good.