News

Air France and Delta tipped as Virgin Atlantic bidders

SkyTeam alliance partners Delta Air Lines and Air France-KLM are the latest carriers being linked with a potential bid for Virgin Atlantic.

The duo initially want the UK long haul carrier to join their transatlantic joint venture to counter rival British Airways North Atlantic business tie-up with American Airlines and Iberia.

But the Delta-AirFrance/KLM group, which has appointed Goldman Sachs as its adviser, is likely to face competition from Etihad, owned by the ruling family of Abu Dhabi, in any full bid for Virgin.

Etihad is reported to have drafted in Bank of America Merrill Lynch to advise it.

Virgin founder Sir Richard Branson hired Deutsche Bank in November to examine the options for his 51% stake in the airline. The remaining 49% is owned by Singapore Airlines, which has previously indicated that it would sell at the right price.

Industry sources reportedly said over the weekend that the increased competition across the Atlantic meant Sir Richard would either be forced to bring in a deep-pocketed investor or sell out altogether.

Virgin said: “Virgin Atlantic is a strong, independent business with a good growth position at both London Heathrow and Gatwick, so we are not surprised there is interest in us.”


 

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.