So if Delta airlines does buy Virgin Atlantic, what impacts would that have on Virgin Australia?

2 replies

flyboiwa

Qantas - Qantas Frequent Flyer

Member since 14 Feb 2012

Total posts 9

So if Delta airlines does buy Virgin Atlantic, what impacts would that have on Virgin Australia?

KG

Qantas - Qantas Frequent Flyer

Member since 10 May 2011

Total posts 249

I assumption is that not an awful lot will happen. Apart from the fact that Sir Richards Branson Virgin Group owns 26 percent of the shares in Virgin Australia (note: Virgin Group, not Virgin Atlantic) VA/DJ do not have any ties to Virgin Atlantic. They do already codeshare with Delta, so a potential take over of Virgin Atlantic by Delta Airlines (as well as AF / KLM, wo are in the race to buy SQ's stake in Virgin Atlantic) would probably intensify (maybe some codeshare agreements will become in place, potentially the possibillity to earn mileage for Atlantic Club members on DJ/VA).

It will be more interesting to see what will potentially happen on the alliance front. As Delta and AF / KLM are Skyteam members, it is likely that Virgin Atlantic will join. My understanding is that the ties DJ/VA has with EY and SQ are much stronger than their ties with Virgin Atlantic so I would think they will remain independent, however, speculation/rumours of DJ/VA potentially sigining up to Skyteam will probably become stronger. Not sure if and what the reaction in that case will be from an SQ front.  Both airlines have been forming a storng partnership over the past months and i don't think this will be dismantled due to a potential take over of Virgin Atlantic by DL / Af - KLM.

deethom

Cathay Pacific - Asia Miles

Member since 27 Nov 2012

Total posts 6

Shouldn't make any difference to VA as they only really code share on the SYD/HKG sector.

As to DL making a play for Branson's shares, it depends on  tricky Dickie , and if he want's to retain his 26% in VA, which is slowly recovering from it's restrructure at the hands of J.Borghetti.

If he decides to sell, nodoubt  DL would be very interested in over a quarter share in VA.

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