can come together in offering a much wider choice of destinations. After 15 years, Virgin has come of age and entered into a powerful partnership.”
The deal secured 49% of Virgin Atlantic, the holding company of the airline, Virgin Holidays, Virgin Sun and cargo operation Virgin Aviation Services. The £600.25m included an additional £49m for the airline from SIA. Virgin has reinvested an extra £51m into its carrier. In return, Virgin will invest an as yet undisclosed sum in SIA during 2000. All agreements will be officially signed early this year.
The deal allows Branson to recognise his goal of flying to Australia by using SIA’s links Down Under. Codeshare flights, which are expected to start from Heathrow in the summer, may also link in with Virgin’s new Australian domestic carrier, which launches services in June.
Virgin will also take seats on SIA’s extensive Asia network.
SIA, in exchange, is expected to look at codesharing on Virgin’s flights to the US. The Asian carrier wants to fly to Chicago and New York from Heathrow in its own right, but a Virgin codeshare could be a quicker option.
Virgin will use the investment to fund new aircraft and routes as it prepares to launch flights to Las Vegas and Delhi, and add Shanghai frequencies.
VIRGIN Atlantic claims it will remain outside the Star Alliance despite a wide-ranging tie-up with prospective member Singapore Airlines.
Chairman Richard Branson is understood to want to concentrate on a bilateral agreement with SIA and not involve the Asian carrier’s partners in Star Alliance.
However, this may prove difficult as SIA will have executives on Virgin’s board following a £600.25m investment in the UK carrier. Virgin is to also codeshare with SIA, share frequent-flyer agreements and airport facilities. SIA joins Star Alliance in the spring.
Virgin said its identity will remain intact after the deal and it will continue to develop innovative products.
Branson said: “As our route networks do not overlap, we can come together in offering a much wider choice of destinations. After 15 years, Virgin has come of age and entered into a powerful partnership.”
The deal secured 49% of Virgin Atlantic, the holding company of the airline, Virgin Holidays, Virgin Sun and cargo operation Virgin Aviation Services. The £600.25m included an additional £49m for the airline from SIA. Virgin has reinvested an extra £51m into its carrier. In return, Virgin will invest an as yet undisclosed sum in SIA during 2000. All agreements will be officially signed early this year.
The deal allows Branson to recognise his goal of flying to Australia by using SIA’s links Down Under. Codeshare flights, which are expected to start from Heathrow in the summer, may also link in with Virgin’s new Australian domestic carrier, which launches services in June.
Virgin will also take seats on SIA’s extensive Asia network.
SIA, in exchange, is expected to look at codesharing on Virgin’s flights to the US. The Asian carrier wants to fly to Chicago and New York from Heathrow in its own right, but a Virgin codeshare could be a quicker option.
Virgin will use the investment to fund new aircraft and routes as it prepares to launch flights to Las Vegas and Delhi, and add Shanghai frequencies.