Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Virgin Atlantic CEO on Delta Deal

Details

  • Description

    Virgin Atlantic CEO Steve Ridgway on Delta investing $360M in the company.

  • Duration 4:34
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

-- So breaking news now I Delta's stock spiking on word that delta and Virgin Atlantic are coming to an agreement giving -- up 49%.

Stake in virgin.

A state that is currently held by Singapore Airlines.

For more on the details of the deal we are joined by Virgin Atlantic CEO Steve Ridgway Steve welcome of the program thanks for -- -- -- enough to name.

Let me ask you customers and shareholders know the difference -- notice the difference now that we're seeing that this portion the company passed from saying air.

Over to delta what will feel different.

What I think we -- very strong airline on the north event tickets where we start to decide heritage.

Delta delta likewise and of course delta has a huge.

Presence in the US and by putting our operations and should just get -- we've got to get this deal approved.

Festival which is of the C delta buying Singapore's state buying the 49 cents.

And then we would also be applying to create a joint venture across the North Atlantic.

With antitrust immunity so that we can coordinates -- should jewels.

-- make sure that we can bring together a -- a network.

For all customers and potential customers to fly on say two.

I think it's very positive news.

With two good data lines coming together.

And really offering more choice to consumers.

What do you think of the difference in price in 1999 -- air paid 962.

Million dollars for this state.

Now we see delta paying 360.

Million quite a difference bear what do you make of that.

Well.

I think.

Yes it certainly is and I think that's the reality of the world we live in.

1999 was a high points I think so.

The European and US carriers in terms of how well the economies who performing and of course that all changed up to 9/11 and then the Iraq War.

And of course still spike in the global financial crisis and I guess if you look at.

Major airlines share prices in many many markets there -- lot lower today than they were in nights -- nine sadly and that's that's the challenge that we'll have about how do we get the economy growing again -- Things like this enable us to compete more effectively with the big monster lives like BAA -- and that's obviously good for consumers.

That is obviously not -- -- -- you have to apply for antitrust.

Immunity DC that -- a large hurdle.

Tall hurdle.

Published -- it shouldn't be because there at least two other.

Very large immunized alliances across the north Atlantic and if you take the BA AA one which we fought for very long time.

They have over 60% market share and even when you bring -- to carry us together we'll still only have about 24% market share.

But equally it enables us to offer -- more compelling proposition in terms of the number of destinations served and the fact that we can grow our markets as well.

But consolidation for a lot of consumers also may mean higher prices.

Can you reassure travelers that won't be the case.

Well I think.

Competition across the North Atlantic is -- he fears it has been for the whole 28 years that we've been flying.

Version -- always.

Brings good competition and very competitive prices to market so I didn't think consumers have anything to fear on that front this will be great for consumers.

What does it mean for the virgin brand I mean some would say that -- was a better -- in the sense that it's a luxury brand.

You know virgin is very flashy you have Richard Branson out there as the main shareholder and obviously you know the person that everyone associates with the brand.

But -- put delta in its place in and you know -- -- Here in America it's you know very 300 white bread and I would say he'd -- it's it's it's the big the large brand that doesn't have a ton -- style mean what does it mean for the virgin brand going forward.

But I I didn't know I think that -- Delta's fortunes of rising arriving very high.

Among all the US carriers has done a great job of integrating -- Northwest Airlines is made.

Very both statements about these investment programs -- -- one point four billion but JFK and in the terminal there which is where we're located.

He's got a lot of new -- -- coming it is very committed to new products and their C Yahoo! what exactly said that today that they have very attracted to -- vigilance it.

And the vision into brand because of precisely.

The service quality that we offer and I think actually when you put -- you'll put us services together.

Nine flights today great timings of that should you.

But it will be -- quality and pedigree may not be the same number of flights -- -- BAA but if you want to have the best experience across the North Atlantic from Heathrow.

To JFK into New York.

Then fly with a -- and delta.

-- right thanks so much.

Load More