Branson orders ‘strategic review’ of Virgin Atlantic
06.11.10
Sir Richard Branson has hired Deutsche Bank to examine strategic options for Virgin Atlantic in a move that could see him relinquish control of the airline, the Telegraph reports. Virgin Group owns 51 percent of Virgin Atlantic, and Sir Richard has asked the German bank to study the airline's market position in the wake of BA's impending merger with Iberia and its transatlantic tie-up with American Airlines.
Deutsche's work, which is said to be wide-ranging, includes assessing how Sir Richard can maximise value from the airline, which is 49 percent owned by Singapore Airlines and valued by analysts at anywhere between £500m and £1bn.
An 'insider' told the newsoaoer that Deutsche was ‘looking at the whole landscape’. They will look at potential partnership airlines, such as Lufthansa or a Middle Eastern carrier like Etihad or Emirates. The Telegraph also suggests one optionis a merger with BMI, which has 10% of Heathrow’s slots and a schedule that could integrate nicely with the thirty long-haul Virgin Atlantic services.
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