Delta buys 49 percent stake in Virgin Atlantic

[jeff_c 3]

Delta Air Lines Inc. is buying almost half of British airline Virgin Atlantic for $360 million as it aims to boost its share of the lucrative New York-to-London market.

 

http://bigstory.ap.o...virgin-atlantic

[CoolP 283]

Maybe they rebuild Concorde?

lucrative New York-to-London market.

Darn, I just woke up. :wacko:

[mgh 89]

Delta is buying its stake from Singapore Airlines.

[Airbus Commander 563]

Well that was quick!

[Matthew Kane 1,343]

I didn't see that one coming.

[Airbus Commander 563]

Only been in the news for about 2 weeks, looks like DL moved fast to acquire VS....

[Matthew Kane 1,343]

I was just curious about what Virgin's intentions are with it as they are trying to establish Virgin America, which is a competitor of Delta I would have thought.

 

Perhaps the sale of 49% of Virgin Atlantic will raise the funds to grow Virgin America, and all Delta is getting is a few more landing slots at Heathrow.

[mgh 89]

Singapore Airlines paid $995M in 1999 for its shares in Virgin Atlantic. they are now worth only $360M. Will Delta do any better than Singapore Airlines?

[Matthew Kane 1,343]

Singapore Airlines paid $995M in 1999 for its shares in Virgin Atlantic. they are now worth only $360M. Will Delta do any better than Singapore Airlines?

 

Yes this seems the same sort of deal to me, Win for Branson.

 

Delta is hungry for the NY to Heathrow Route while Branson is growing Virgin America.

 

They are saying that Delta will be able to get more passengers from it's US routes onto that NY to London route but what happens as Virgin America gets bigger?

[mgh 89]

Yes this seems the same sort of deal to me, Win for Branson.

 

Delta is hungry for the NY to Heathrow Route while Branson is growing Virgin America.

 

They are saying that Delta will be able to get more passengers from it's US routes onto that NY to London route but what happens as Virgin America gets bigger?

 

None of the $360M will go to Virgin Atlantic. Neither airline will be able to operate any extra flights in and out of Heathrow. Presumably they hope to increase their load factors over the Atlantic by growing passenger numbers one way or another.

[Matthew Kane 1,343]

None of the $360M will go to Virgin Atlantic???

 

???

 

Delta bought 49% of Virgin Atlantic stake from Singapore Airlines. What do you think Branson is going to do with his share of that deal, continue to build Virgin America with his other US partners I would think

 

I know there is no extra flights, Landing slots are full. What it is for Delta is they will be able to connect more passengers from their domestic routes onto the current NY to Heathrow routes with this deal, Virgin Atlantic already has these slots because their are no more other Heathrow slots available. This is a short term fix for Delta costing them $360 million.

 

On the otherside of all this Branson and his ambitions are currently building a Virgin America with his US Partners, which is taking market share from Delta anyways so........Branson wins on both sides long term.

[mgh 89]

 

Delta bought 49% of Virgin Atlantic stake from Singapore Airlines.

 

Exactly. Delta paid $360M to Singapore Airlines not to Virgin Atlantic.