Delta Purchases 49% Share of Virgin Atlantic

Luke Macgregor/Reuters

After two years of trying to buy Singapore Airlines' share of ownership in Virgin Atlantic, Delta has finally struck an agreement of $360 million for 49% of Richard Branson's airline.  Delta set its sights on Virgin Atlantic in order to expand its presence at London's Heathrow Airport and increase its offering to the lucrative New York/London corridor.  The airlines would operate as a joint venture, if they gain the necessary anti-trust approvals from United States and European regulators.  That would allow them to sell seats on one another's flights and offer a smoother flight experience for travelers who connect through New York to London.

Ham on Wry sincerely hopes that Delta won't nickel and dime overseas travelers to death as it does to passenger in the U.S.  Given the competition and the stellar reputation Virgin Atlantic has earned, it should affect the collaboration positively.  Branson uses a customer-centric approach in operating his airlines, and his Virgin America Airlines consistently appears as the number one airline operating in the U.S. based on customer satisfaction surveys.  Not so for Delta.

London-bound travelers might have reason to cheer if the joint venture goes through.  Delta states that it will consummate the purchase, regardless of whether regulators approve the request.