Good question, gbees. This is not easy to answer given the fact...

Good question, gbees. This is not easy to answer given the fact that VBA has not quantified the possible impact of the venture. All we know is that it allows the two airlines to get together and discuss things like pricing, schedules, product planning, lounge access etc. One positive thing is that it allows VBA to compete against QAN and United Airlines. Also, its not generally seen as a key factor on possible downside or upside risk to the brokers price target. They all tend to talk about oil price, competition, demand etc. My take is that if delta and Virgin get together and collaborate on a whole heap of different things it won't be substantial enough to drive the share price to $2, although there will be some upside. The bigger concerns include fuel costs, fx, hedging, short an long haul and fleet replacement. Also, a major part of VBA's business is domestic(core) not international. I've jibbered a little bit but I hope it helps. BTW did you notice the support today, after VBA fell back to 74.5?