Published on : Friday, July 28, 2017
Founder of Virgin Atlantic, Sir Richard Branson sold its 31 pc stake in airlines for £220m as the part of the new business union with Air France- KLM. With this deal, Sir Richard Branson ceded the control of Virgin Airlines.
Sir Richard Branson announced that he is selling 31% of Virgin Atlantic, surrendering his interest in Virgin Atlantic, which he founded in the year 1984.
Richard Branson will net £220m from the deal to sell the 31% stake to Air France-KLM and remain as chairman of the airline.
He retains a 20% interest and leaving the US giant Delta, as the largest shareholder in Virgin Atlantic with 49%. It is expected that, Virgin Atlantic will retain independence and will fly under the Virgin brand.
In a statement, he said that Virgin airlines is a strong champion and will continue its expansion in the airlines business network, which is beneficial to the people and the brand itself.
The 67-year-old entrepreneur, Branson, is a well acclaimed name in aviation industry in the world. His business was started out by chartering and selling seats on his first plane, when a flight was cancelled in the Caribbean. Later, he formed Virgin Atlantic, which is now often one of the most glamorous airlines company, and strengthening itself with its base in United Kingdom aviation.
Virgin Atlantic edged into large business profit from 2014 to 2016, but after the Brexit issue, the company sees major losses.
In a letter to staff Branson said it was an exciting day for the airline, and said he would still remain as the major entity in holding the shares, adding that his new partners all agreed the brand should survive.
The airline has merged over Virgin Atlantic’s lifetime and it’s now our turn to put themselves with the heart of an important alliance with Air France.
Atlanta-based Delta Airlines, one of the major low cost airlines, already had a joint venture with Air France-KLM dating back to 2009, including Alitalia from 2010.