Virgin bride

11 December 2012 By Christopher Swann

Being Richard Branson’s junior partner cost Singapore Airlines two-thirds of its investment in Virgin Atlantic. Delta, however, is buying the 49 pct stake at a discount to what slots at London’s premier airport usually command. That should help the new joint venture take flight.

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Delta Air Lines said on Dec. 11 it would buy a 49 percent stake in Virgin Atlantic from Singapore Airlines for $360 million and has agreed to a transatlantic joint venture with the British carrier.
The two companies plan to cooperate on services between New York and London, with a total of nine daily round-trip flights from London Heathrow to John F. Kennedy International Airport in New York and Newark Liberty International Airport in New Jersey. Delta and Virgin will share costs and revenue on the routes between Britain and North America.
Virgin Atlantic, which is the second-largest carrier at Heathrow after British Airways, lost 80 million pounds ($128 million) in its last full year.
Singapore Airlines bought 49 percent of Virgin Atlantic for $965 million in 1999.

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