Singapore Airlines in talks with potential buyers of Virgin Atlantic stake

Virgin Atlantic

Singapore Airlines Ltd (SGX:C6L) announced today it was negotiating with interested parties a potential sale of its 49% stake in UK airline Virgin Atlantic Limited.

The Singaporean company did not unveil the names of these entities, but informed sources told Reuters that US-based Delta Air Lines Inc (NYSE:DAL) was among them. Two of the insiders noted that the latter seeks to get access to Virgin’s landing rights at the Heathrow airport in London.

The US airline has been mulling over collaborating with Air France-KLM (EPA:AF) on the purchase as the European Union demands that local carriers remain under European control. One of the options is that the French company takes a small interest in Virgin from its founder Richard Branson, who owns the other 51%.

Reuters said that representatives for Virgin and Delta had declined to comment, while Air France had not not immediately available to do so.

Meanwhile, Singapore Airlines warned that the ongoing discussions are not certain to lead to a deal.

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