DL buys stake in VS

[chff]

Delta confirms to buy 49% of Virgin Atlantic from Singapore Air. Virgin to retain brand, Virgin Group/Branson to keep 51% stake

[Dan]

Hopefully they'll join Skyteam soon!

[AJK]

If they do, at least we won't have to worry about not redeeming for VS F

Unless, of course, DL considers the "Upper" in Upper Class to = F 

[Side incomer]

If they do, at least we won't have to worry about not redeeming for VS F

Unless, of course, DL considers the "Upper" in Upper Class to = F

Lol

I doubted Delta wouldn't charge YQ for VA, as AA charges for BA, so no need to be excited.

[Dan]

Unless, of course, DL considers the "Upper" in Upper Class to = F 

They won't.  It's not coded that way.

I doubted Delta wouldn't charge YQ for VA, as AA charges for BA, so no need to be excited.

-1, DL has actually been getting rid of a lot partner YQs of late.  And charge none on ST members ex-USA.

[AJK]

Lol

I doubted Delta wouldn't charge YQ for VA, as AA charges for BA, so no need to be excited.

Well, first it's VS, not VA. Second, what does the fact that AA charges YQ for flights on BA have to do with DL charging it for flights on VS? Last, HA did not charge YQ for redemptions on VS.

So a man can hope.

[AsherO]

I should've bought DAL when the rumors started last week, would've gained 6%+...

[AJK]

I should've bought DAL when the rumors started last week, would've gained 6%+...

Nah, you shoulda bought option (or sold puts) and you coulda gained 100X that...

[AsherO]

Nah, you shoulda bought option (or sold puts) and you coulda gained 100X that...

Bought an option is better as it limits my risk. Rumors could fall apart which (FWIU) can hurt me with a sold put. Please CMIIW.

[AJK]

Nope, your downside risk to selling a put is the stock going to zero, thus both ways (buying a call and selling a put) have a downside limit.

Contrast that with selling a call, or buying a put (where the downside risk is unlimited).

[Side incomer]

Well, first it's VS, not VA. Second, what does the fact that AA charges YQ for flights on BA have to do with DL charging it for flights on VS? Last, HA did not charge YQ for redemptions on VS.

So a man can hope.

It's all about the competition in the market. There is a reason why all US based airlines aren't charging yQ, and almost all European based airlines are charging.
Now, once AA has broken that and started charging on BA, I can easily see DL copying that with VS, especially when there is nothing true competitive on VA that doesn't charge that (besides HA, which is no more considerable for most people).

[Dan]

It's all about the competition in the market. There is a reason why all US based airlines aren't charging yQ, and almost all European based airlines are charging.
Now, once AA has broken that and started charging on BA, I can easily see DL copying that with VS, especially when there is nothing true competitive on VA that doesn't charge that (besides HA, which is no more considerable for most people).

-1.
The AA/BA situation is pretty unique.  AA was never allowed to sell BA TATL award tickets and to make that happen they had to agree to the onerous YQ.

[Side incomer]

-1.
The AA/BA situation is pretty unique.  AA was never allowed to sell BA TATL award tickets and to make that happen they had to agree to the onerous YQ.

Well, I guess we'll wait and see. Something tells me DL won't be so generous not to charge YQ.

[AJK]

Well, I guess we'll wait and see. Something tells me DL won't be so generous not to charge YQ.

They don't on AF... or KLM... or KE... or... even most importantly: Virgin Australia.

[Dan]

They don't on AF... or KLM... or KE... or... even most importantly: Virgin Australia.

Bingo.  Was just about to post that before your edit.

[Side incomer]

even most importantly: Virgin Australia.

They just stopped recently for the flights out of the USA. Till recently they were charging close to $1000 on a single award ticket departing the USA.

[AJK]

They just stopped recently for the flights out of the USA. Till recently they were charging close to $1000 on a single award ticket departing the USA.

Operative word.

[Dan]

They just stopped recently for the flights out of the USA. Till recently they were charging close to $1000 on a single award ticket departing the USA.

But you see the trend I mentioned...

[meshugener]

Dear XXXXX,

We are delighted to announce a new strategic alliance with Delta Air Lines.
 
We believe this is very exciting news for our members, for our business and signals the start of a new era of growth and opportunities. On 11th December 2012, we announced that Delta will acquire a 49% stake in Virgin Atlantic from Singapore Airlines. Virgin Group - and Richard Branson - will continue as majority shareholder with a 51% stake in Virgin Atlantic.
 
Our new partnership with Delta will provide a significant boost for both airlines between North America and the UK, particularly in the New York-London market, which is one of the most competitive business markets in the world.
 
We have also announced a joint venture with Delta which will create an expanded transatlantic network. By combining the strengths of our two companies in a joint venture, we can better serve customers travelling between North America and the UK and continue building a better airline for our employees, shareholders and most importantly our customers.
 
In order to realise all the benefits of the joint venture, the US Department of Transportation (DOT) will need to grant Delta and ourselves regulatory approval. Because we believe there are major consumer benefits, we are confident that the DOT will approve the joint venture and it will come into effect within the next 12 months.
 
As always we will keep you posted on how we are progressing and will be in touch soon with more information about some exciting Flying Club Programme changes.
 
For more information visit www.virginatlantic.com
 
Thank you so much for your on-going support.

Steve Ridgway
 Chief Executive



What does that mean?

[AJK]

Exactly what it says.