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Branston Journalism
Sep. 3rd, 2008 07:27 amBusiness journalists in the popular press (by which, in this instance, I mean The Times) must be like goldfish. I say this because, despite the evidence of history, they fall for the Mr Pickle PR releases and leaks time and Times again.
This morning's headline is "VIRGIN LEADS AIRLINE PLAN TO BUY GATWICK", followed by the comment "Sir Richard Branson's airline....".
Now, er, let's actually look at the story. For a start, Gatwick isn't actually, yet, for sale. The EU Competition Commission's findings on the break-up of BAA aren't scheduled to be published until next April.
Secondly, the news in the story is actually that
Er, well, I might have a chat with someone about buying Buckingham Palace, but I wouldn't expect it to make the business papers of The Times.
Thirdly, Virgin Atlantic is not "Sir Richard Branson's airline". Singapore Airlines owns 49% of it, and is mightily pissed off at the crap return on equity that it has achieved over the past near-decade. Virgin Group owns a majority 51% stake. The beneficial ownership of Virgin Group (a holding company) is even more complex and far less transparent, but I think I can guarantee that Mr Pickle is not a 100% beneficial owner.
The facts of the matter are, any buyer of Gatwick from BAA, if and when BAA sells it, is likely to be a government investment fund, either in China or the Middle East. Mr Pickle, as is his wont, would love to be a minority part of such a consortium (meaning he has to stump up less cash) with a brand lead (meaning he could 'charge' the consortium for the 'benefit' of using the Virgin brand) and with the chance to increase the profile of Virgin Atlantic at Gatwick.
It would be the threat of the last matter that will probably kybosh any Virgin interest in Gatwick at all. I can't see any competition commission believing Virgin's assurances that having a Virgin airline flying from a Virgin-branded airport would be anything but an unfair advantage.
____________
Went to Citibank yesterday. Five or six weeks ago a £200 withdrawal cost me $390+. Yesterday it cost me $357. It's almost enough to make you support Darling continuing as Chancellor.
+++++++++++++++
This morning's headline is "VIRGIN LEADS AIRLINE PLAN TO BUY GATWICK", followed by the comment "Sir Richard Branson's airline....".
Now, er, let's actually look at the story. For a start, Gatwick isn't actually, yet, for sale. The EU Competition Commission's findings on the break-up of BAA aren't scheduled to be published until next April.
Secondly, the news in the story is actually that
"Virgin Atlantic has held talks with financial partners over a possible bid to buy Gatwick Airport".
Er, well, I might have a chat with someone about buying Buckingham Palace, but I wouldn't expect it to make the business papers of The Times.
Thirdly, Virgin Atlantic is not "Sir Richard Branson's airline". Singapore Airlines owns 49% of it, and is mightily pissed off at the crap return on equity that it has achieved over the past near-decade. Virgin Group owns a majority 51% stake. The beneficial ownership of Virgin Group (a holding company) is even more complex and far less transparent, but I think I can guarantee that Mr Pickle is not a 100% beneficial owner.
The facts of the matter are, any buyer of Gatwick from BAA, if and when BAA sells it, is likely to be a government investment fund, either in China or the Middle East. Mr Pickle, as is his wont, would love to be a minority part of such a consortium (meaning he has to stump up less cash) with a brand lead (meaning he could 'charge' the consortium for the 'benefit' of using the Virgin brand) and with the chance to increase the profile of Virgin Atlantic at Gatwick.
It would be the threat of the last matter that will probably kybosh any Virgin interest in Gatwick at all. I can't see any competition commission believing Virgin's assurances that having a Virgin airline flying from a Virgin-branded airport would be anything but an unfair advantage.
____________
Went to Citibank yesterday. Five or six weeks ago a £200 withdrawal cost me $390+. Yesterday it cost me $357. It's almost enough to make you support Darling continuing as Chancellor.
+++++++++++++++
