Article from BTNews 9 DECEMBER 2019
Branson to keep control of Virgin
Transatlantic expansion plans by Air France-KLM in partnership with Virgin Arantic and Delta are still on track, the group said on Friday, despite Virgin Atlantic chairman Richard Branson’s decision not to sell part of his stake in his airline to it as part of a joint-venture (JV) deal.
Branson, who holds 51% of Virgin with Delta Air Lines holding the remaining 49%, had planned to sell 31% of his stake to Air France-KLM as part of the transatlantic link-up among the three airline companies.
The JV was approved by the US Department of Transportation (BTN 25 November) but Branson said last week Virgin had agreed subject to contract with the partners he would continue to hold the 51% of Virgin shares his family owned. Air France-KLM said it accepted the deal.
In a message on the Virgin blog (see link), Branson said he had always viewed Virgin Atlantic as one of his children and was reluctant to part with it, though initially thinking it might be necessary to get the JV deal done.
He added: “I was willing to do so, reluctantly, to guarantee the long-term success of Virgin Atlantic.” However, following the DoT approval, the new arrangement had now been agreed. The transatlantic JV “remains an essential part of our future and long-term success”.
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