Delta buys 49% stake in Virgin Atlantic
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Delta Air Lines has acquired Singapore Airlines’ 49% stake in Virgin Atlantic while rumours continue to circulate about the latter’s future.
In a joint statement released today Delta and Virgin Atlantic said they have signed a new joint venture that will expand trans-Atlantic services and boost competition on flights between the UK and North America.
Delta is to invest US360 million (GBP22m) into its 49% stake, while Virgin Group and Sir Richard Branson will continue to hold the other 51%.
In the new deal the airline will share costs and revenue from joint venture flights; combine networks and cooperate on flights between New York and London. Both will benefit from expansion at Heathrow as slots remain tight. They have now filed an anti-trust application with the US Department of Transportation (DOT) and other regulators with the venture expected to be finalised at the end of 2013.
“This is an exciting day in Virgin Atlantic history. It signals the start of a new era of expansion, financial growth and many opportunities for our customers and our business. I truly look forward to the possibilities our partnership with Delta will offer,” said Branson. “We will retain that independent spirit but move forward in a strengthened partnership with Delta.”
Earlier this week Branson fought back claims Delta was due to buy out Virgin Atlantic and put the latter brand’s new in jeopardy.