Marriott’s Deal for Starwood: Who Wins, Who Loses, What’s Next?

by Gary Leff

Apr 04 2016

With the Anbang saga presumably behind us, shareholder votes on the Marriott acquisition of Starwood scheduled for April 8, we can return to a discussion of what the future of Starwood — and Marriott — will look like. And as they say, ‘where you stand depends on where you sit.’

The deal should be approved at the shareholder meeting April 8. The transaction should close during summer. And the big hairy work to figure out what Marriott wants to do with Starwood, now that they’ve won her, will really begin — strategic decisions, then massive IT projects. Eventually some hotel brands will disappear though not for awhile. And some Sheraton hotels will be stricken from the earth as a cancer on the brand. So that part at least is for the good.

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Alaska Deal to Buy Virgin America for $2.6 Billion Announced, Listen in to the Investor Call

by Gary Leff

Apr 04 2016

Alaska Airlines announced that it is acquiring Virgin America at $57 per share or ~ $2.6 billion in a transaction expected to close by January 1, 2017.

Alaska Airlines’ Mileage Plan will be the surviving loyalty program. They’re being non-committal about the Virgin brand at this point, although it seems inconceivable they would continue to pay to licensing.

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Alaska Wins Virgin America for a Whopping $2.5 Billion

by Gary Leff

Apr 03 2016

Virgin America’s market cap was about $1.15 billion a week and a half ago. Speculation began about a buyout and the company closed worth closer to $1.5 billion on Friday.

Last Monday JetBlue and Alaska Airlines were revealed to be the leading contenders to buy Virgin America. Yesterday it looked like Alaska would seal the deal at about $2 billion.

Now the Wall Street Journal is reporting that Alaska will wind up the victor — but at a cash price of $2.5 billion.

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Alaska Airlines Changed Their Mind About Why They Devalued Without Notice

by Gary Leff

Apr 03 2016

Mid-last week Alaska Airlines made no-notice changes to their Emirates award charts for business and first class travel, raising prices by as much as 100%. Overnight the price of business class and first class awards went up — a lot. A first class roundtrip between the US and Africa on Emirates went from 200,000 to 400,000 miles.

Alaska offered an explanation. It turns out that Alaska Airlines has changed their mind about why they did it, and is offering a new and different explanation.

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New First Spaces Seat Could Rival Etihad’s First Apartment

by Gary Leff

Apr 03 2016

Designer Seymourpowell has come up with a new ‘First Spaces’ interior for the Airbus A380 that could rival the most revolutionary and luxurious first class seat in the skies.

It doesn’t quite offer as much space as Etihad’s ‘beyond product’ The Residence which even offers a private shower onboard.

The idea is akin to the First Apartment onboard Etihad’s Airbus A380s, but instead of a separate seat and bench that folds out into a bed — with some passengers complaining that the seat doesn’t really recline much — the seat here does turn into a bed so offers an in-between lounging mode.

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Tesla Races a 737, Wins, Gives Free Qantas Club Membership to Owners

by Gary Leff

Apr 03 2016

Qantas and Tesla raced a Boeing 737-800 against a Model S P90D in ludicrous mode on a runway at Avalon airport Southwest of Melbourne.

I drove a Tesla last summer at a Hyatt event. It was super cool, I loved it, but would never buy a $100,000 car even factoring tax breaks and savings on gas. (I also wouldn’t pre-commit to a cheaper model with a quarter million preorders, that’s too much demand outstripping supply and despite the price won’t be a ‘good deal’.)

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