Virgin America

[av8tor4239]

This is from DELTA NET:

Sounds real, but who knows?

ASA sold to Virgin America?
Posted: Mar 24, 2005 9:40 AM Reply
I posted this in the nonrev forum by accident. My apologies.

So it seems the latest rumors are that ASA is going to be purchased by Virgin America, which is a US domestic version of Virgin Atlantic, started by Richard Branson. Virgin America has yet to begin operations but is expected to begin late 2005 to early 2006. www.virginamerica.com

A member posted this in a forum on flightattendants.org. This is probably bull… but I guess we'll know by April 6th.

"It has been confirmed by the President's Office at Atlantic Southeast Airlines and the Chairman's Office of DALG in Atlanta, Georgia that ASA has been sold to a third party. The official press release will be made public at a press conference NLT April 6th. Further, the General Office source confirmed the President's comments that ASA will be flying under the Virgin Airways brand for the new "Virgin America" airline. This action is not entirely unexpected by business analysts as much speculation has been given to this action since Frederick Reid's appointment as President of Virgin America Airlines in March 2004. Mr. Reid is the former President and COO of Delta Air Lines and as such oversaw the acquisition of both ASA and Comair by DALG in the late 1990's. This transaction will provide much needed cash immediately to DALG which is in dire need of liquid assets prior to the close of Q2 2005. Further, it will enable DALG to concentrate assets on the much anticipated enhancement of both its Delta Air Lines' low-cost evolution and Song expansions."

 

[av8tor4239]

I gues we wont be called a regional anymore if this does happen.. Finally get out of the FEEDER business... Thanks mr. Branson!

 

[Marko Ramius]

Absolutely nothing to do with the topic but....

I believe the Bus goes "200, 100, 50, 30 retard, 10, and a bunch of 5's if you float" The retard name calling overides the 20 foot callout.

 

[On Your Six]

Would be good news for the CRJ or ATR pilots wanting to ultimately fly larger aircraft. The only concern will be whether they fly the Airbus/Boeing aircraft at ATR wages... Can't stop the LCC revolution and VA will need very low costs to compete effectively. I hear a Virgin Atlantic 747-400 Captain makes about $85K US per year...

 

[mckpickle]

That would be great. Bransons first taste of labor unions......and one close to self help too!!!!!!!!!!!!!

 

[General Lee]

Fred Greed was a great leader for us at DL..........NOT. Enjoy him.



Bye Bye--General Lee

 

[Flywrite]

I havent really been following this whole rumor, and maybe I missed something, but if DAL wants to concentrate on their "low cost" business, why would they sell off an asset to help set up a big competitor?

 

[General Lee]

I havent really been following this whole rumor, and maybe I missed something, but if DAL wants to concentrate on their "low cost" business, why would they sell off an asset to help set up a big competitor?

Well, Virgin America would start out with a bunch of RJs, like Indy Air. Sounds like a good plan to fight a competitor---give him a bunch of RJs......Watch them sink fast! (all ASA pilots will hopefully move over to DL someday if they choose)


Bye Bye--General Lee

 

[Flywrite]

Well, Virgin America would start out with a bunch of RJs, like Indy Air. Sounds like a good plan to fight a competitor---give him a bunch of RJs......Watch them sink fast! (all ASA pilots will hopefully move over to DL someday if they choose)


Bye Bye--General Lee

That's kind of what I thought...It's just that Branson, imperfect as he may be, is a shrewd businessman and I cant see him looking at the situation thinking "hmmm...Midway failed with RJs, Indy is failing with RJs, I bet I can do it!"

 

[On Your Six]

Well, Virgin America would start out with a bunch of RJs, like Indy Air. Sounds like a good plan to fight a competitor---give him a bunch of RJs......Watch them sink fast! (all ASA pilots will hopefully move over to DL someday if they choose)


Bye Bye--General Lee

That's a good point. Why would you want to start a LCC operation with a bunch of RJs with limited seats (like Indy Air)? Fred GREED was a huge advocate of the RJ (hence the orders for 1000 RJs) while at Delta and maybe he is still a huge fan despite the very poor economics in a low-cost environment... That don't make a lot of sense unless he wants to pay the pilots DIRT to maintain a slim profit margin. I can't imagine that competing against SWA on the West Coast will lead to huge profits...

 

[viper01]

VA website states that they have 105 A-320 leased for the their operation. Should be interesting to see who and for what payscale they will be operated.

 

[AviatorTx]

VA is going to need a feeder also... They could buy somebody already in operation, or start their own. I bet buying an existing carrier would be easier.

Lets see... A feeder for a discount. Does that make your pay "C" or "D" scale? %^$# I hate this industry.

 

[Medeco]

I agree with the thougth of why would delta sell to a competitor/start-up?

Regardless of how hard up they are for cash.


Delta MUST have a feeder the size of ASA in ATL, or the whole business plan is up in smoke.

Who of the contract carriers can replace our operation in size on short term notice? And be cost effective for DAL.

I dont see it making alot of sense.

But I sure would not mind the Virgin mindset for FA hiring.

Medeco

 

[On Your Six]

VA is going to need a feeder also... They could buy somebody already in operation, or start their own. I bet buying an existing carrier would be easier.

Lets see... A feeder for a discount. Does that make your pay "C" or "D" scale? %^$# I hate this industry.

True, but it would take VA some time to build an A320 fleet for the trunk routes (unless there are a lot of used A320s sitting around - it's possible). You would have another Indy Air situation where you were trying to quickly increase seat volume but getting killed on the yield side with the 50-70 seat RJs in this high-cost environment.

I too would be surprised if Delta sold such a big portion of its ATL feed... I'll believe it when I see the actual announcement in April.

 

[CF34-3B1]

Makea about as much sense as DAL selling a bunch of DC9s to a new low cost start up in ATL....................

 

[LJDRVR]

"It has been confirmed by the President's Office at Atlantic Southeast Airlines and the Chairman's Office of DALG in Atlanta, Georgia that ASA has been sold to a third party. The official press release will be made public at a press conference NLT April 6th. Further, the General Office source confirmed the President's comments that ASA will be flying under the Virgin Airways brand for the new "Virgin America" airline.

"We'll leak it to the press now, but there will a press conference later." RIIIGGHHHTTT......

Somebody kindly explain how a high CASM, ALPA RJ carrier fits into Sir Richard's plan for a decidedly non-union transcon LCC.

Pure BS.

 

[ASAFOE120]

I dont care who buys us just as long as they open up my DFW base again!!!!

P. S. Commuting SUX !!!!

 

[Rob M.]

IF VA did buy ASA who is going to get Delta's work.

 

[CF34-3B1]

I dont care who buys us just as long as they open up my DFW base again!!!!

P. S. Commuting SUX !!!!

Wonder what kinda deal DFW would make Sir Richard on all those vacant gates in E.

 

[Dizel8]

Hey Guys,


While you are at it, I got some really nice land in florida and a bridge in NY. Any takers?

 

[EMB170Pilot]

I believe the Bus goes "200, 100, 50, 30 retard, 10, and a bunch of 5's if you float" The retard name calling overides the 20 foot callout.

Love that episode with the life size Antonio Banderas Blow Up Doll

 

[EMB170Pilot]

Ya think he would be interested in the E-170s and E-190s CHQ/Republic is getting. Seems to make more sense

 

[Dirty Sanchez]

This must be the big Mesaba announcement we have been waiting for. I hear Sir Richard is a big fan of the Saab.

 

[FlyComAirJets]

April Fools!

Not even USAirways has been that dumb.

 

[DirkkDiggler]

I havent really been following this whole rumor, and maybe I missed something, but if DAL wants to concentrate on their "low cost" business, why would they sell off an asset to help set up a big competitor?

One word, CASH!

 

[General Lee]

THE BEST WAY TO SINK A LCC---GIVE THEM RJs. (A LOT OF THEM, LIKE INDY)


VIRGIN AMERICA's RJs vs Southwest 737s. That will be a great showdown at the OK corale............Fred Greed does love those RJs....


Bye Bye---General Lee

 

[Dave Benjamin]

This is fun. Kinda like watching a bunch of lemmings. I'd be willing to wager that this "announcement" is total BS. Lots of entertainment value though.

 

[Headfake14]

aren't offices gonna be closed on friday 3/25 for the holiday anyway?

 

[wil]

General- As always, I thank you for your support (really). As you know, the RJ is great for exploring markets and helping thin markets or schedule demands. Our aircraft was never meant to supercede mainline. I know my role in the whole Delta network and do the best I can and I am sure many ASA/ CMR pilots feel the same.
I hope to be doing 50% of the walk arounds for you one day (inclement wx excluded) no matter what happens at our end. Until such time, know that many of us know our role and are trying our best to help Mama D!!
Fly safe, cheers- Wil

 

[General Lee]

Wil,


It will be great when you eventually fly for us (after our furloughs come back) and I will do some of the walkarounds if I am your Captain---but only if it is over 75 degrees and no rain in the area.... But, I will buy the refreshments later...... Thank you guys one more time for your support of our furloughed pilots. Take care.


Bye Bye--General Lee