It seems that Singapore Airlines is talking to others over the share of Virgin Atlantic it owns.
The share – 49% of Virgin Atlantic is the part up for sale – for which Singapore Airlines paid $600 million in 1999. The other 51% of the airline is owned by the Virgin Group.
Singapore Airlines also state that thethe discussions may or may not result in a transaction, and that it will make further announcements when necessary.
Officially, no one is saying who the sale of the 49% could be to. Thankfully there’s always other press to fall back on with everyone saying the same word – Delta.
With the talks with alliances Virgin Atlantic is having – a purchase by Delta along with appropriate discussions could push Virgin Atlantic into SkyTeam, and give Delta major access into Heathrow Airport.
Virgin Atlantic is the 2nd biggest slot holder at Heathrow after British Airways – and with a little management, this could yield more traffic across the Atlantic, as well as the the UK network Virgin Atlantic is trying to create.
Again, Singapore Airlines could walk away from this if the deal isn’t right… but it depends how desperate Delta is for access to more slots at Heathrow…
Singapore Airlines is in talks with “interested parties” about a possible divestment of its 49% stake in Virgin Atlantic.
The Star Alliance member adds that the discussions may or may not result in a transaction, and that it will make further announcements when necessary.
While the airline did not say who it was in negotiations with, reports from the US and the UK say that Delta Air Lines has approached SIA with a view to buying the stake.
Both Delta and Virgin Atlantic could not be reached for a comment.
Singapore Airlines bought its 49% stake in Virgin Atlantic in 1999 for £600m ($961 million), but it has been looking to offload that for several years.
In October, SIA bought a 10% stake in Virgin Australia for Australian dollars (A$) 105 million ($109 million) to help to cement a partnership that the two airlines signed in 2011.