Virgin Atlantic - Another Buy Out!

[Mr Tom Morrow]

Just spotted this on Business news.

Delta Air Lines and China Eastern have announced that they have each purchased 10% of Air France.

In addition, Air France has agreed to purchase the Virgin Group's 31% stake in Virgin Atlantic valued at $287 million.

Air France-KLM formed following a 2004 merger that saw the national airlines of France and the Netherlands come together to form one of the largest carriers in Europe.

In 2012, Delta acquired a 49% stake in Virgin Atlantic Airways from Singapore Airlines in a deal worth $360 million.

So what does it mean ref 'ownership'?

Air France-KLM will acquire a 31 percent stake in Virgin Atlantic currently held by Virgin Group for £220 million
Virgin Group will retain a 20 percent stake and Chairmanship
Delta will retain its 49 percent stake in Virgin Atlantic

To me it means that Delta is the dominant partner, followed by Air France - KLM with Virgin lagging far behind.
I would suspect the Virgin Chairmanship will be lost within 1 year and Delta will assume the role.

[Cabbie]

The following was released this morning;


We need to let you know that today, 27 July 2017, we have announced our intention to expand our strategic partnership with The Air France-KLM Group and Delta Air Lines to offer our customers access to the most comprehensive transatlantic route network via an extensive joint venture. The long-term joint venture would offer convenient flight schedules with competitive fares and reciprocal frequent flyer benefits, including the ability to earn and redeem miles across all carriers. The benefits would also include co-location of facilities at key airport hubs to improve connectivity times for customers, as well as access to each carrier’s airport lounges for premium customers.

The enhanced joint venture, including Alitalia, would become the airline partnership of choice for customers, offering more than 300 daily nonstop transatlantic flights and increasing competitive routings with offerings across key business markets including Amsterdam, Atlanta, Boston, Cincinnati, Detroit, Los Angeles, London Heathrow, Minneapolis-St Paul, New York-JFK, Paris-CDG, Salt Lake City and Seattle.


The enhanced joint venture would establish a combined partnership with a duration of at least 15 years. In order to support the success of that cooperation:

Air France-KLM will acquire a 31 percent stake in Virgin Atlantic currently held by Virgin Group for £220 million
Virgin Group will retain a 20 percent stake and Chairmanship
Delta will retain its 49 percent stake in Virgin Atlantic

All transactions are subject to execution of definitive agreements and receipt of final shareholder, board, and regulatory approvals. Virgin Atlantic would retain its independence as a UK airline with a UK operating certificate, and will continue to fly under the Virgin brand.

Jean-Marc Janaillac, CEO, Air France KLM, said: “With our partners Delta and Virgin Atlantic, we are pleased to reinforce our transatlantic partnership, offering our customers even more choice between Europe, UK and the United States via twelve hubs on both sides of the Atlantic.”

Sir Richard Branson, Virgin Group Founder, said: “Virgin Atlantic has made a big difference to people’s flying experience over the past 33 years and transformed the airline industry for the better. This is a fantastic opportunity to extend our network and create a stronger customer champion, as well as being extremely beneficial to our people and the Virgin Atlantic brand that our customers love dearly.”

Craig Kreeger, CEO, Virgin Atlantic, said: “We built the Virgin Atlantic brand by providing customers with the choice they deserve and a travel experience they love. We couldn’t be more excited that the next stage of our growth will be at the heart of the strongest partnership for customers traveling between Europe and North America. Together with our friends at Air France-KLM and Delta we will build on this vision of our teams creating irresistible experiences for customers flying on our network.”

Ed Bastian, Delta’s CEO, comments “By working even more closely with our great partners at Air France-KLM and Virgin Atlantic, together we will develop a path to increase competition across the Atlantic that will spur additional benefits for customers, employees and shareholders.”


-Steve

[Mr Tom Morrow]

Cabbie.

Steve, Seems an awfully cheap price to me for such a big % stake. Wouldn't even get many aircraft for that let alone the rest of the infrastructure.

[Cabbie]

Originally Posted by Mr Tom Morrow

Cabbie.

Steve, Seems an awfully cheap price to me for such a big % stake. Wouldn't even get many aircraft for that let alone the rest of the infrastructure.

See more...

I agree but I think it's a reflection of the financial shape VS are in.

-Steve

[Warkman58]

Just been reported the Brandon has sold a further 31% to Air France/KLM.
Means he has a minority interest now, at 20% but should give better connections for travellers

[Mr Tom Morrow]

Already on General Chat. Actually Richard Branson walked away a long time ago and has nothing to do with VA now.

[Warkman58]

Originally Posted by Mr Tom Morrow

Already on General Chat. Actually Richard Branson walked away a long time ago and has nothing to do with VA now.

See more...

Interesting, at the same tine Delta have bought 10% of Air France/KLM.
..uk.businessinsider/delta-...17-7?r=US&IR=T

[Warkman58]

Sorry, hadn't seen this thread, so had listed in transportation.
At the same time Delta and China eastern airlines have both bough 10% each of Air France/KLM...

uk.businessinsider/delta-...17-7?r=US&IR=T

[Mr Tom Morrow]

Originally Posted by Warkman58

Interesting, at the same tine Delta have bought 10% of Air France/KLM.
..uk.businessinsider/delta-...17-7?r=US&IR=T

See more...

You are right, very interesting. We all know there is much more involved in aviation than pure profit. namely prestige, future business etc etc.
Being a long time cynic I suspect we will eventaully see a small number of interlinked companies dominating the market and price fixing big time. Plus the odd start up newbie that lasts a short while then folds.

[Amy1989]

Will this effect flights? (Like who you fly on