Panman
Topic Author
Posts: 603
Joined: Mon Aug 09, 1999 8:25 pm

Singapore Airlines Buys 49% Stake In Virgin

Mon Dec 20, 1999 10:18 pm

This has just come over the news on TV. Singapore Airline is buying 49% of Virgin in a deal worth £600 million. Branson obviously is keeping 51% and this retains overall control of the airline.

He is quoted as saying: This is a great day for all of us at Virgin Atlantic and for the travelling public. As our route networks do not overlap we can come together to offer a much wider choice of destinations.

Apparently when the deal has been completed Branson will invest in Singapore Airlines.

This also means that Virgin Atlantic is going to be allowed into the Star Alliance and gives Singapore Airlines more slots at Heathrow Airport.

Virgin Atlantic has been valued at £1.2 billion.
 
Al
Posts: 584
Joined: Tue Jun 08, 1999 10:28 pm

RE: Singapore Airlines Buys 49% Stake In Virgin

Mon Dec 20, 1999 10:42 pm

SQ will take some seats on the VS board as well, so guess who calls the shots now?! It means all hell is gunna break loose down here - and so many pennies have suddenly dropped. No wonder AN has been so quiet about VirginOz. Interesting few weeks coming up!
I don't know if VS could join Star as well as BD - gawd, I can hear the wails coming from Speedbird House already. *If* [and that's a big if] VS do join Star, that'll mean a huge huge beating for BA/AA at LHR by BD & VS with help from UA LH SK AC and on a smaller scale SQ. I don't think the Brit authorities would let it happen without some pretty major sacrifices on the part of the Star carriers.
Cheers. Al.
 
Al
Posts: 584
Joined: Tue Jun 08, 1999 10:28 pm

RE: Singapore Airlines Buys 49% Stake In Virgin

Mon Dec 20, 1999 10:58 pm

SQ will take some seats on the VS board as well, so guess who calls the shots now?! It means all heck is gunna break loose down here - and so many pennies have suddenly dropped. No wonder AN has been so quiet about VirginOz. Interesting few weeks coming up!
I don't know if VS could join Star as well as BD - gawd, I can hear the wails coming from Speedbird House already. *If* [and that's a big if] VS do join Star, that'll mean a huge huge beating for BA/AA at LHR by BD & VS with help from UA LH SK AC and on a smaller scale SQ. I don't think the Brit authorities would let it happen without some pretty major sacrifices on the part of the Star carriers.
On another note, it could all be part of the "master" plan to grab the piece of an Aussie carrier SQ have been craving for for years. I can imagine the phone call from Singapore to Auckland:
"You work with us on Ansett, or we'll set VirginOz onto them and have them for breakfast. Leave us alone and we'll let VirginOz feed both you and Ansett within Oz. Now - about that little matter of Ansett ownership you denied us some time ago......" :-]
Cheers. Al.
 
kaitak
Posts: 8934
Joined: Wed Aug 18, 1999 5:49 am

RE: Singapore Airlines Buys 49% Stake In Virgin

Tue Dec 21, 1999 2:40 am

Al has raised the issue which first came to my mind; what effect will this have on the Australian operation planned by VS. I notice that both carriers (QF and AN) have said they're going to reduce fares by up to 70%, so the Australian side of this will be interesting to watch.

I wonder will this result in SIA getting the long coveted rights to the US from Heathrow? Note that Britain also has extensive fifth freedom rights from Singapore to various destinations. Might SQ now fly these. A codeshare between SQ and VS between LON and NYC would be superb!
 
DeltaAir
Posts: 1059
Joined: Tue May 18, 1999 4:41 am

RE: Singapore Airlines Buys 49% Stake In Virgin

Tue Dec 21, 1999 3:23 am

This doesn't make since, AF and DL are talking to Virgin about an alliance and Virgin and Delta already ahve something going and the pilots at Delta are saying that Virgin will join within a month. Does this mean Singapore will be leaving Star due to the fact that it doesn't get along with other airlines in there?
 
AFa340-300E
Posts: 2115
Joined: Tue May 18, 1999 3:49 am

RE: Singapore Airlines Buys 49% Stake In Virgin

Tue Dec 21, 1999 3:36 am

Hello,

DeltaAir, I think VS has gone for good... I know they were reported to join either AF-DL or Wings, but once again Star Alliance has taken the member that was due to enter our alliance... :-(

Regards,
Alain Mengus

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