Tags: richard branson | virgin atlantic | ownership

Richard Branson's Virgin Atlantic Ownership Drops to 20 Percent

Image: Richard Branson's Virgin Atlantic Ownership Drops to 20 Percent

Richard Branson in 2016. (ROBIN VAN LONKHUIJSEN/AFP/Getty Images)

By    |   Friday, 28 Jul 2017 09:37 AM

Richard Branson's Virgin Atlantic ownership is dropping to 20 percent after he announced he was relinquishing control and selling 31 percent of the airline he founded in 1984.

Branson will remain as chairman of the airlines, but U.S. carrier Delta Air Lines will become Virgin Atlantic's largest shareholder at 49 percent, The Guardian reported on Thursday. Branson is netting about $228 million for the shares he is selling to Air France-KLM.

The transaction spurred Delta's increasing investment into its partnership with Air France to acquire 10 percent equity into in a joint venture that will give the airlines a seat on Air France-KLM Group board of directors, a Delta statement said. The statement added that the venture will offer customers the most comprehensive trans-Atlantic route network.

"A dynamic global landscape means it's more important than ever for Delta to deepen ties with our global partners to provide opportunities for mutual growth," Delta chief executive Ed Bastian said in its statement.  "Bringing together the strengths of Delta, Air France-KLM and Virgin Atlantic into a combined joint venture will create the trans-Atlantic partnership of choice for customers."

Delta said in the statement its expanded joint venture includes the Italian airline Alitalia, allowing it altogether to offer almost 300 daily nonstop trans-Atlantic flights. The Telegraph said that Alitalia's involvement is through already existing partnerships with Air France-KLM and Delta.

Branson sent a letter to airlines staff informing them of the deal, saying that he remains the largest individual investor, but admitting the air industry has consolidated since he started Virgin Atlantic, The Telegraph reported.

"It's now our turn to put ourselves at the heart of an important alliance," Branson stated, per The Telegraph. "With these three partners in place and with me – and one day, the wider Branson family – still very much involved, we have the foundations to make sure this is so."

The Telegraph reported that the deal, once it gains regulatory approval, is expected to last at least 15 years.

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
TheWire
Richard Branson's Virgin Atlantic ownership is dropping to 20 percent after he announced he was relinquishing control and selling 31 percent of the airline he founded in 1984.
richard branson, virgin atlantic, ownership
331
2017-37-28
Friday, 28 Jul 2017 09:37 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved