Jet Airways and Virgin Atlantic in share swop?

http://www.dnaindia.com/report.asp?newsid=1132416

There has always been speculation that Richard Branson and Naresh Goyal are linking up. In addition, buzz is that Richard Branson also has an interest in Spicejet, which has recently picked up 10 Boeing 737-800/900 mixed lot full economy.

Any inputs from anybody else?

Might be me reading it wrong, but it doesn't actually mention Virgin Atlantic. The article says the "Virgin Group"

I wouldn't have thought that SRB would give any shares away from VA as that would leave him as a minority shareholder as he only owns 51% at the moment.

However, anyone that can untangle the web of company ownership to do with Virgin is much better than me.

IMHO

David

I agree with David.

I would imagine that what we could see is some kind of codeshare agreement (or maybe a start of an alliance of some sort- although highly unlikely given VS attitude towards alliances).

I seem to recall that SRB also had an interest in Air Deacon. At the time, mid 2002-3, all the talk was of SRB using Air Deacon to start a Virgin Blue format in India.

VEX LTD - one of the miriad of Virgin compaies owns just under 30% of SN Brussels (the airline that emerged form the merger of Virgin Express and Sabena's successor). To swap this stake for something in a sucessful airlinr in a market that has huge potential for future growth would seem logical. But it's certainly nothing to do with VS. SRB seems to keep all these things very seperate and I wouldnlt have thought he'd do anything to endanger his stake in VS.

It seems that there may be some truth to this whole exercise of Virgin Atlantic and Jet Airways coming closer together. In a day and age where you can see British icons like Land Rover and Jaguar heading with employee union support for Indian ownership and control, towards a larger benefit of all stakeholders including employees, then I would think that it is no longer about endangering a stake but it would be more about simply improving things for all stakeholders.

Look at it dispassionately - Jet Airways is an international product that has taken a commodity (aircraft) and made itself into a world beating brand in a few short years. This can not happen without deep loyal employee involvement. From what I read here there are similar loyal employees at Virgin Atlantic also.

What then would you expect an enlightened airline owner to do as a next step? Would he back the loyals or the whingers, and would he take a hit in something as nebulous as "control"?

After all, what value is his stake in VS if the employees are not looked after, especially the deep loyal ones?

On a related note - I met with a very senior cabin crew person, currently running training in India for one of the newer airlines. The person in question is British, and the single reason for being in India for a training job is that the way the turn around of the "raw material" takes place (candidates) is what is the satisfaction that person achieves. And the latest proposal is to set up a training academy for cabin crew of all nationalities - in India. Candidates from there will work on world salaries with world airlines, so what's next, why would owners not think that way?

Originally posted by daharris
VEX LTD - one of the miriad of Virgin compaies owns just under 30% of SN Brussels (the airline that emerged form the merger of Virgin Express and Sabena's successor). To swap this stake

I dont think that will happen really. I think there was some ruling somewhere that VEX kept a stake. Also VS and SN couldnt be further apart- SN partners with BA!!

Originally posted by Mogmog
Jet Airways is an international product that has taken a commodity (aircraft) and made itself into a world beating brand in a few short years.

Well its important to remember that 9W has been around since 1993 and operating International routes since 2004. The airline has also expanded rapidly by merging with Air Sahara. So its taken them a while but I do agree they are doing very well. I would say they are more akin to EK.

After all, what value is his stake in VS if the employees are not looked after, especially the deep loyal ones?

I dont think this is the correct thread to start the pay deal debate again if thats what you are trying to do.

SRB wont be selling his stake in VS- he has gone on record to say he regrets selling his stake in DJ so I do not think he will do the same with VS.

You must also remember that 9W have very close links with BA.


From a Virgin Group view point- a stake in 9W would be rather odd considering they have just taken a stake in Air Asia X.