DL plans SEA-LHR, seeks joint venture with Virgin Atlantic

[spectator]

DL and VS filed an application with the DOT for its joint venture and in it said DL would continue to develop its SEA hub with new service to LHR.

The DL-VS JV would expand the existing DL/AF/KL/AZ JV.

http://finance.yahoo.com/news/delta-virgin-atlantic-file-antitrust-184700923.html

excerpts:

"In addition, if antitrust immunity is approved, Delta plans to begin new nonstop service between Seattle and London-Heathrow, expanding competition on that important business market. The new service would complement Delta's growing international gateway in Seattle.

"Delta already operates an industry-leading trans-Atlantic joint venture with Air France KLM and Alitalia. In their filing, the airlines are also seeking antitrust immunity for five-way coordination on U.K. – North America traffic flows among Delta, Virgin Atlantic, Air France, KLM and Alitalia to facilitate the effective operation of the two joint ventures."

Great news for the Pacific NW and for increased competition and choices between the US and UK.

 

[topDawg]

DL and VS filed an application with the DOT for its joint venture and in it said DL would continue to develop its SEA hub with new service to LHR.

The DL-VS JV would expand the existing DL/AF/KL/AZ JV.

http://finance.yahoo...-184700923.html

excerpts:

"In addition, if antitrust immunity is approved, Delta plans to begin new nonstop service between Seattle and London-Heathrow, expanding competition on that important business market. The new service would complement Delta's growing international gateway in Seattle.

"Delta already operates an industry-leading trans-Atlantic joint venture with Air France KLM and Alitalia. In their filing, the airlines are also seeking antitrust immunity for five-way coordination on U.K. – North America traffic flows among Delta, Virgin Atlantic, Air France, KLM and Alitalia to facilitate the effective operation of the two joint ventures."

Great news for the Pacific NW and for increased competition and choices between the US and UK.

Also said they will look to add DTW-LHR #2 and SLC-LHR. Slot for SEA-LHR has already been paid for and bought from Alitalia

 

[spectator]

I believe though not 100% sure that DL said the AZ slot transfer is conditional upon approval of the JV.. but DL is doing the same thing with AZ as it did w/ AF and KL... trading slots for access to LHR in order to participate in the JV.

 

[WorldTraveler]

DL has received unconditional approval from the US and EU for its purchase of the 49% stake in VS.

http://finance.yahoo.com/news/eu-commission-clears-delta-buy-133413384.html

http://finance.yahoo.com/news/u-approves-delta-airlines-purchase-135738739.html

 

[WorldTraveler]

one step closer to the JV with tentative approval for ATI from the US DOT.
http://www.bloomberg.com/news/2013-08-30/delta-virgin-get-tentative-u-s-approval-to-align-fares.html?cmpid=yhoo

 

[NewHampshire Black Bears]

one step closer to the JV with tentative approval for ATI from the US DOT.
http://www.bloomberg...html?cmpid=yhoo

Nice 'PLUM'...WT.
Good Luck. ....(I'm serious)

 

[700UW]

VS pulling out of Australia.
 
http://www.ausbt.com.au/virgin-atlantic-to-axe-sydney-hong-kong-flights

 

[WorldTraveler]

somehow I bet SEA-MEX is on the list too.

scuttlebutt is that DL is planning for more service to the same continent.

 

[700UW]

American Chief Executive Douglas Parker, the former CEO of US Airways, told an aviation summit in Washington on Thursday that the addition of US Air gives the American-British Airways alliance "twice the scale" of a similar venture that Delta Air Lines began with Britain's Virgin Atlantic Airways earlier this year that operates more than 30 flights
"We're well ahead of them already," Willie Walsh, CEO of British Air parent International Airlines Group, said on the sidelines of the conference.
 

 

[WorldTraveler]

DL never said that they intended or expected to be on the same scale as AA-BA. The fact that there is a competitor at all to AA-BA is a tribute at all.

VS fought AA-BA for years.. it is a tribute to DL that they decided to recognize that they could and should be a part of the same type of JV that AA-BA has and chose DL to be their partner.

 

[eolesen]

Yep. It's called surrender.

You can feel good knowing that DL was a better choice than UA. Really.

 

[WorldTraveler]

and yet VS chose a former AA exec to lead them and an alliance with DL.... not only did his loyalties to AA mean nothing but he chose the one airline that has shown a ballsy ability to compete in the toughest markets against AA and UA.

Branson is a smart guy... he waited too long to realize that the busy had changed and VS was on the outside but they are very well positioned to gain a whole lot relative to AA and BA. DL's average fares to/from LHR show that even before the JV went into place. We'll hear much more about the success of the DL-VS JV in the months ahead including on the DL earnings call in a couple weeks.

 

[eolesen]

Loyalty to an employer typically ends the day you cash your last paycheck and exercise your last stock option.

You've just fawned over Craig. There's also Dave Cush and Doug Parker, who left AA as VP's and eventually became CEO's. Stephen Wolf was also a VP at AA, as was Tom Plaskett, who was the last CEO at Pan Am. The current #2 guy at Hawaiian also came from AA.

Since DL is without question the pinnacle of airline strategy... Who from their extensive bench of VP's actually has had what it takes to go lead another airline?

 

[WorldTraveler]

none of them ran a large operation based in London... and he is from DL's largest major competitor, I suppose. But you would have to ask Richard Branson and VS' board. I didn't participate in the selection process.

and there are often non-compete clauses that executives have to sign... apparently Craig didn't have one.

 

[700UW]

And VS is bleeding and that is why Branson had to sell to Singapore then Singapore sold it to DL.
 
VS doesnt have the feed for their flights like BA does.
 
http://www.telegraph.co.uk/finance/newsbysector/transport/9920468/Bransons-Virgin-Atlantic-faces-record-loss.html
 

 

Branson’s Virgin Atlantic faces record loss

Virgin Atlantic is facing record annual losses, raising fears of job cuts at the airline founded by Sir Richard Branson.