Is Delta Buying 49% of Virgin Atlantic?

Delta-logoDelta Air Lines is looking to become a partner in rival Virgin Atlantic according to rumors. 49% of Virgin Atlantic shares are held by Singapore Airlines and they are on the market. Delta, after digesting Northwest is looking to firm up it’s power position in transatlantic flights. A recent sponsorship agreement with the Chelsea Football Club underlines the importance that Delta is placing on the English market, one that Virgin has a significant share of.

The real key is for Delta to not tarnish the brand Branson built at Virgin. If they can be successful in keeping the brands separate while allowing both airlines to feed directly into Delta’s domestic operations it can be a very successful opportunity.

Delta is looking into buying a big stake in Virgin Atlantic, the second-biggest airline at London’s Heathrow airport. New York to London is one of the world’s most important travel routes, and Delta currently flies fewer flights to Heathrow than its main U.S. competitors, American and United.

On Monday, Singapore Airlines said it is in discussions with “interested parties” to sell its 49 percent stake in Virgin Atlantic. A person with knowledge of the talks told The Associated Press that Delta is in talks with Singapore Airlines about buying the Virgin Atlantic stake. The person requested anonymity because the talks are ongoing. The Singapore Airlines statement said the talks may or may not result in a deal. via the Washington Post

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