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Virgin Atlantic in advanced alliance talks -- Star Alliance is the obvious choice

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[#1215]

Bloomberg is reporting that Virgin Atlantic is in "fairly advanced talks" to join one of the three major alliances: “Virgin Atlantic has always enjoyed its independence, but since pretty well every competitor that we have has an alliance I think we have finally decided that to survive we need to have an alliance,” Branson said…

Continue reading: Virgin Atlantic in advanced alliance talks — Star Alliance is the obvious choice

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 sjs
(@sjs)
Joined: 17 years ago

Posts: 60

If they could join the UA/LH, etc. JV/ATI, that could be a win-win.


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(@Jeremy)
Joined: 15 years ago

Posts: 14

I have a feeling since the talks are in advanced stages United will not Veto Virgin, but who knows


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(@David M)
Joined: 14 years ago

Posts: 29

Virgin joining Star Alliance would be great. I have twice flown US to London on Virgin and then London to Singapore on Singapore Airlines. It would be great to get Star Alliance points on United for the US to London flight.


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(@economy-class-and-beyond)
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I'm going to throw a damper on the party, and I have a feeling it will be SkyTeam.

... just a hunch based on what other Virgin Airlines are doing...


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(@Stephan)
Joined: 15 years ago

Posts: 255

Not sure that a VS move to Skyteam would be much different than to *A, as DL would be in the same position as UA given the above scenario TATL. However, DL already has a relationship with VA. *A obviously seems better for the FF. What happens to VX in either case since they are competitors in the USA?


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(@tassojunior)
Joined: 15 years ago

Posts: 123

Skyteam makes much more sense as it's needs a better London presence while Star has plenty.

Branson's been saying this for over a year. He's just trying to get the most $ from one or the other and Skyteam is the only one that needs him.


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(@Martijn)
Joined: 14 years ago

Posts: 9

I think Skyteam will make a big push for VS and Virgin Australia as well, as tassojunior said Skyteam has the least presence at LHR of the three alliances.


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(@Kris Ziel)
Joined: 16 years ago

Posts: 194

I am leaning towards them heading to Skyteam, but there is always the chance it could end up similar to the ST/OW competition when JL was looking for money. DL tried to pull JL to Skyteam not to strengthen their own alliance, but to weaken oneworld, and I can see Star doing that.


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 Matt
(@Matt)
Joined: 14 years ago

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I think it makes more sense for VS to join SkyTeam, but as Kris said, I think *A could try to take VS away from SkyTeam just to weaken them.


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(@A. S.)
Joined: 16 years ago

Posts: 155

I disagree with you, @Lucky. I think it will be SkyTeam, but who knows... It's just that from Branson's statements it appears that VS wants more than just an earn/burn deal -- they want to improve revenue, which means they'll be pushing (probably) for a JBV. This would be very difficult to get with *A seeing as to how both VS and *A are already entrenched at LHR.


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(@lucky)
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I just don't see how they'd add any value to SkyTeam. With Star Alliance, Virgin Atlantic would get at least some feeder traffic. Would the same be true with SkyTeam? I can't think of many cases where they would. Air France is based just about 200 miles away and flies everywhere they do, so I doubt they'd send each other much traffic. Yes, there's Delta, but other than that, I don't see how they'd add any value.

@ Stephan -- I'd be shocked if VX is in business much longer.


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(@Duncan)
Joined: 15 years ago

Posts: 119

They could always form their own i.e. Virgin Airways? Always struck as to how disjointed their FF programs are world wide. VA has closer tie in with Eithiad, Singaores and Air NZ than any other Virgin "Airline". VS has just started domestic (short haul)in UK with EU flights to be announced shortly. Otherwise it's Star and they finally get a domestic partner back in Oz. Across the ditch to the states the choices in Star are UA oldest 747 in the sky, Air NZ 3 hours longer all via NZ. Best direct still Emiroo (Qantas), Virgin, AA. Remember though with Richard you are dealing with a master of SPIN.


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(@tassojunior)
Joined: 15 years ago

Posts: 123

If VS doesn't join an alliance should we just skip next year's announcement by Branson that VS is about to join an alliance?


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(@David)
Joined: 15 years ago

Posts: 35

Star Alliance makes more sense from a flyer's point of view as well as the relationships already being there. The addition of a SYD-HKG nonstop in Star would be great too. The key with VS would be that it adds better LHR connectivity to Africa and Asia than exists at the moment. The US route network is less important given the strength of UA there. Assuming that VA will be more inclined to go where VS goes (and that is no certainty), it would also help Star get back into Australia which could be useful.

Skyteam is an interesting option. VS/VA in ST would would strengthen Asia though it would still be light in SE Asia. Africa would also get a pick up as would West Coast to LHR connections in the US as well as Canada to LHR. If VA follows, it would strengthen the VA/DL trans pacific tie but would make the Trans Tasman agreement with NZ more difficult.


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(@Alain)
Joined: 18 years ago

Posts: 25

as an Aussie any alliance is great providing VA joins too. I think Skyteam, although they would be competing with Garuda on Aust to Bali flights. Garuda has just signed a deal with Etihad and changing its DXB stop to a AUH with code shares on EY.
NZ looks like it could be happy to leave Star ....


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 Kai
(@kai-2)
Joined: 5 years ago

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I thought SQ is pretty influential in the alliance, so their opinion does carry quite a bit of weight?

Anyway, there have been cases where an airline had partnerships with various airlines from one alliance, then joined another. Malaysia Airlines is a fine example - they had partnerships with KL, AF, DL, Alitalia etc, but went on to join OneWorld.

Only time will tell, I suppose! (Please please please let it be Star)


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(@Josh G)
Joined: 15 years ago

Posts: 67

FWIW, they have a FF partnership with US to earn miles, but redemption are only for Y class.


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(@rdover1)
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One potential benefit to United for VS to join Star is their excellent links to Africa which no US carrier current does well.


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(@lucky)
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@ Kai -- While they are influential, veto rights are veto rights...


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(@Duncan)
Joined: 15 years ago

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Star after today with what happened down under with VA buying 60% of a Soingapore subsidary and SA buying 10% of VA. Money's on Star or a Virgin/Singapore Alliance.


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(@bryanenji)
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I thought VS was going to form their own alliance with the other two Virgin brands.

They honestly should have formed an alliance with one of the gulf carriers


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 Dax
(@Dax)
Joined: 15 years ago

Posts: 331

Looks like Kevincm, tassojunior, Martijn, Kris Ziel, Matt, A. S., Alain all had a better read on this than Ben did.

http://www.slate.com/moneybox/2012/12/03/delta_virgin_atlantic_takeover_the_skyteam_s_sneaky_plan_to_break_into_heathrow.html


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