Virgin America Weighs Sale After Receiving Interest

Discussion in 'Regional & National Airlines' started by 700UW, Mar 23, 2016.


  1. 700UW

    700UW Corn Field

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  2. 700UW

    700UW Corn Field

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    JetBlue and Alaska have submitted.
     
  3. swamt

    swamt Veteran

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  4. 700UW

    700UW Corn Field

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    A foreign carrier cannot own more than 49% of a US based carrier nor can they be in control of it. Remember how the DOT gave VX a hard time when they were first getting off the ground?
     
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  5. swamt

    swamt Veteran

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  6. 700UW

    700UW Corn Field

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  7. eolesen

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    That's going to be an interesting case with the DOJ --- AS has extensive codesharing with both DL and AA, and both deals would potentially stand in the way of AS trying to do a merger without significant changes to both codesharing partnerships.

    Given the DL agreement hasn't been able to be broken before by AS, it's entirely possible that DL could play the role of spoiler.
     
  8. 700UW

    700UW Corn Field

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  9. swamt

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    Could it be possible for JB to revisit their offer?  To me it would seem JB would be in more of a need for Virgin than AS,s need for Virgin. Your thoughts?
     
  10. Hatu

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  11. 700UW

    700UW Corn Field

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  12. jimntx

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    More than likely, JB has already been given an opportunity to offer more than $2.6 billion and declined the offer.  Quite frankly, I think it's a bit much myself.  There's going to have to be some really upscale profits to amortize that selling price.
     
  13. swamt

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    I also think AS just made themselves less desirable for an acquisition.  But only time will tell, we will see if there are any more in the future.  Still wondering what JB still might do, or what is next for them?
     
  14. jimntx

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    What the heck happened?  When I left home this morning it was a $2.6 billion acquisition.  Now ATW is reporting it as a $4 billion deal????
     
    http://atwonline.com/data-financials/alaska-airlines-buy-virgin-america?NL=ATW-04&Issue=ATW-04_20160404_ATW-04_28&sfvc4enews=42&cl=article_1_b&utm_rid=CPEN1000001734009&utm_campaign=5510&utm_medium=email&elq2=9be960c6caaf4213abc4ee109362fe41
     
  15. jimntx

    jimntx Veteran

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    I agree with AS assessment.  They have always been very clear that they were perfectly happy as an independent airline.  This debt load should make them less attractive.  (Assuming of course that the Feds ever even allow the word merger to be spoken in public in the future.  :lol:)
     
  16. eolesen

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  17. 700UW

    700UW Corn Field

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    They are issuing $2 billion in new debt, and will use $600 million from cash on hand.
     
  18. swamt

    swamt Veteran

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    So should the mechanics of Virgin quickly organize and get a union before merger is complete?  Should they try to go AMFA?  Whatever they do don't go with the teamsters. Look how long the teamsters are taking at UAL when both sides are represented by the exact same union with merging seniority rules already in the contracts. Virgin has also already said that some of the aircraft maintenance employees will not be needed.  They better do something real quick, otherwise they may get put at the bottom of the list as new hires all over again.  If anyone here was a Virgin mechanic, wouldn't you want to represented during a merger? Just asking...
     
  19. 700UW

    700UW Corn Field

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    Did you forget about McCaskill-Bond?

    Makes a staple job almost impossible, even if one group is non-union?
     

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