Delta Air Lines is buying Singapore Airlines' 49 percent stake in Virgin Atlantic Airways, forging a joint venture to expand the carriers' trans-Atlantic network, the companies announced Tuesday.
Under the agreement, Delta will invest US$360m and British mogul Richard Branson's Virgin Atlantic will keep the 51 percent controlling stake.
Virgin Atlantic Airways will retain its brand and operating certificate.
"Our new partnership with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the UK, particularly on the New York-London route, which is the largest airline route between the US and Europe," said Delta chief executive Richard Anderson.
The alliance gives the Atlanta, Georgia-based Delta greater presence at the congested London Heathrow airport.
The two carriers will operate as many as 31 round-trip flights between Britain and North America, 23 of which operate out of London-Heathrow.
SOURCE
As widely rumoured, Delta swallowed everything SIA spitted out after the less than impressive invesment in the British owned airline. Will Delta be able to turn it around and make it profitable in the long term? I'm skeptical about this.
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