Skift Take
With acquisition talks with Delta and Air France-KLM under way, Richard Branson could reduce his direct involvement with Virgin Atlantic, but don't expect the Virgin brand to make a quick exit.
If Delta Air Lines eventually succeeds in acquiring Singapore Airline's 49% piece of Virgin Atlantic Airways, and Air France-KLM chips in to buy part of Richard Branson's stake, don't expect Delta to apply red and blue paint to Virgin's fuselage and tail, and simply rebrand the airline as "Delta UK."
Henry Harteveldt, chief research officer at Atmosphere Research Group, notes that Virgin "still has a very good name and reputation," and doubts that Branson would entertain seeing the brand disappear, given the Virgin Group's widespread investments and holdings and the ongoing royalties the airline brand generates.
Published reports indicate that Delta flirted with acquiring a chunk of Virgin Atlantic a year ago, with the talks breaking down in part on the future of the Virgin brand.
The real value in Delta and Air France-KLM jointly investing in Virgin Atlantic would be for those prized slots at Heathrow, which would give SkyTeam a much-bolstered presence in London, Amsterdam and Paris, gateways for Europe and the Middle East, Harteveldt says.
And those gates at Heathrow would give SkyTeam a clear advantage over the Star Alliance in the London market, Harteveldt adds.
Virgin Atlantic doesn't belong to one of the three major airline alliances, and competes with oneworld member British
