Partnership With Air France-KLM Approved

A partnership between Virgin Atlantic and Air France-KLM  that was first discussed in 2017 has been approved by multiple governmental agencies, including most recently the U.S. Department of Transportation. Under the terms of the deal, Sir Richard Branson and his family will retain 51 percent of the airline he started 35 years ago.

Virgin Atlantic has been the target of multiple takeover attempts over the years, but has managed to continue to stand on its own. But it has formed partnerships to feed passengers to the airline, which is the foundation of the agreement with Air France-KLM.

Writing on the Virgin Atlantic blog, Branson said that the U.S. DOT granted antitrust immunity to the joint venture on November 21. "Importantly following this news, we have agreed (subject to contract) with our new joint venture partners, that our family will continue to hold the 51 percent of Virgin Atlantic shares we own. We’ll also continue to work extremely closely with our partners investing together in a thriving airline and holiday company," Branson wrote.

Branson said he had been reluctantly willing to give up a majority share of the airline to get the deal done and "guarantee the long-term success of Virgin Atlantic." But now it appears that will not have to happen.

"This will benefit you all, the wonderful people of Virgin Atlantic and Virgin Holidays, and contribute to a winning partnership. The expanded joint venture with Delta and Air France-KLM remains an essential part of our future and long-term success," Branson said of the joint venture.

"We’ve had a fantastic 2019, with the new A350s joining the fleet, complete with a refresh of our famed onboard experience. We’ve continued to build a modern, fuel-efficient fleet, signing the deal at the Paris Airshow for the A330neos that will join our A350s from 2021. We’ve started flying to Tel Aviv, returned to Mumbai and added more and more seats out of Manchester Airport.

"As we enter 2020, the 50th birthday year for the Virgin Group, there is more excitement ahead, with the launch of our first South American route to Sao Paulo. And as well as expanding our partnership with Delta, Air France and KLM, we’ll see more red planes flying around Britain, as Virgin Connect starts flying under the Virgin brand."

(Image from file)

FMI: Virgin Atlantic blog