SINGAPORE Airlines (SIA) will sell its 49 per cent stake in Virgin Atlantic to Delta Air Lines for US$360 million in cash, a transaction which is expected to be completed in 4Q2013.
SIA had acquired 49 per cent of Virgin Atlantic in March 2000.
In a press statement, SIA said it had been evaluating strategic options for the stake for some time, as the investment has not performed to expectations and the synergies the parties originally hoped for have not materialised.
Commercial arrangements between SIA and Virgin Atlantic, encompassing codesharing, frequent-flyer programme ties and reciprocal lounge access, are expected to remain in place after the divestment.
