Delta-Virgin Atlantic deal is close
- BCCI says it can't control bookies, promises to 'fix' guilty players
- Counter-terrorism to top Indo-US Security dialogue agenda: Sushilkumar Shinde
- IPL 2013 LIVE SCORE: Pune Warriors bat, Ashok Dinda back
- Chinese Premier Li Keqiang arrives today, PM to seek early revival of border talks
- Telangana very much part of UPA national agenda: P C Chacko
Delta Air Lines Inc. is close to buying a stake in Virgin Atlantic for between $300 million to $500 million, a person familiar with the negotiations said on Monday.
The person spoke on condition of anonymity because a deal has not been announced.
Singapore Airlines owns a 49 per cent stake in Virgin Atlantic. Last week, it said it was in talks with a possible buyer for that stake. Delta has been widely reported to be on the other side of those talks.
It's not yet clear exactly what Delta would do with its stake, but Virgin Atlantic is the second-biggest airline at London's Heathrow airport, behind British Airways.
A partnership with Virgin Atlantic would give Delta access either to some of its landing rights, or at least to some of the financial benefits of flying people to London, whether they're on a plane flown by Delta or Virgin Atlantic.
Landing rights are limited at Heathrow, so airlines can't just add more flights there whenever they want. And currently Atlanta-based Delta has fewer flights from the New York area to Heathrow than either American or United, its main US competitors.
"We believe that if Delta were to acquire these slots it would put it on an even footing with American... and United" at Heathrow, airline analyst Ray Neidl wrote in a December 3 note examining the implications of such a deal.
When news of the discussions first surfaced earlier this month, Air France _ a partner of Delta's on trans-Atlantic flights -- was thought to be interested. However, on Monday it issued a statement saying, "Air France-KLM is not involved in current negotiations between Delta and Singapore."
Virgin Atlantic was founded in 1984, and 51 per cent is owned by Sir Richard Branson's Virgin Group. In 2000, Branson sold a piece of it to Singapore Airlines for £600.3 million, about $960 million at the time.
- Quake-hit and shaken, Bhaderwah spends nights in the open
- UP blast accused dies on way to jail, govt wanted to drop case against him
- Former civil aviation secy changes mind, seeks airport security exemption as EC
- BCCI suspects Gujarat players in other teams were also approached
- Police on money trail, Sreesanth in fresh trouble
- Chhattisgarh 'encounter' leaves 8 villagers dead, no Maoist link yet