VIRGIN ATLANTIC CONFIRMS MERGERS ARE A POSSIBILITY

Dino D'Amore
By Dino D'Amore December 16, 2010 21:35

VIRGIN ATLANTIC CONFIRMS MERGERS ARE A POSSIBILITY

Virgin Atlantic has received a number of enquiries about potential merger and/or tie-up partners it confirmed yesterday. Among those expressing interest is reported to be Delta Air Lines of the US. Such is the interest from Delta that they are reported to have hired Goldman Sachs as an advisor. Virgin, which has Deutsche Bank employed to assess growth opportunities and ensure it remains a market force, said it was too early to go into details and it expects Deutsche Bank’s work to run “for a number of months.”

Last year, Virgin ended talks with Deutsche Lufthansa about a potential acquisition of British Midland International, or bmi, after the German airline opted to keep and restructure the airline.

Virgin Atlantic, which is 49% owned by Singapore Airlines and 51% by Richard Branson’s Virgin Group. It has been reported that Singapore Airlines wishes to sell its stake. The future for Virgin remains in the balance as its competitors merge on all sides. Many sources suggest that Sir Richard Branson could sell down his stake, allowing the group to become part of a wider alliance.

Virgin remains highly attractive because of its landing slots at Heathrow. It is the second-largest long-haul carrier operating out of the airport.

Dino D'Amore
By Dino D'Amore December 16, 2010 21:35
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