Richard Branson Abandons Plans to Sell Controlling Stake in Virgin Atlantic to Air France-KLM
Sir Richard Branson said he has abandoned plans to cede control of Virgin Atlantic Airways to Air France-KLM Group and will retain a controlling interest in the airline he founded.
The change of heart was announced in a letter to employees of the airline on Monday. Sir Richard said he will retain a 51% stake in the airline instead of selling 31%, as had been agreed upon in the deal with Air France-KLM.
The change is “subject to contract,” he said in his letter.
In 2017, Air France-KLM had announced it would acquire a 31% stake in Virgin Atlantic from parent Virgin Group just as Delta Air Lines and China Eastern each announced they would independently acquire a 10% stake in Air France-KLM Group.
Delta already owns 49% of Virgin Atlantic as well as 3.2% of China Eastern. The Atlanta-based carrier recently gained approval for a new trans-Atlantic joint venture with Air France-KLM as well as with Virgin Atlantic.
(Photo: Accura Media Group)