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According to e-Global Travel Media, AirAsia group Chief Executive Datuk Seri Tony Fernandes has denied that any plans exist to buy a stake in the British carrier, which is widely reported to be seeking a partner or partners. Britain’s Sunday Times newspaper reported that AirAsia, the region’s largest low-cost carrier by fleet size, was a suitor.
But Fernandes, contacted by Malaysia’s Star newspaper, poured cold water on the suggestion. He said no discussions were taking place and he had no idea why any such speculation existed.
British billionaire Richard Branson holds a 51% stake in the airline he founded in 1984, while Singapore Airlines bought a 49% stake in Virgin Atlantic in 2000.
Virgin Atlantic has been reported to have hired Deutsche Bank to assess the aviation market. The New York Times reported recently that Virgin Atlantic had received several approaches about potential partnerships with other carriers.
The airline is understood to have been actively seeking a partner since the joint business agreement between British Airways and Iberia took force in October. Those two airlines are in the process of merging, a deal which Virgin supremo Branson vehemently opposed. Branson was also highly critical of the close alliance between American Airlines and British Airways. BA is Virgin’s eternal rival and main competitor on lucrative transatlantic flights out of Heathrow Airport.
Virgin is not a member of the three big airline alliances. It could join SkyTeam (Delta, Air France/KLM and others) but the Star Alliance (United, Continental, Lufthansa, Singapore Airlines and others) might be more likely, given the Singapore Airlines link.
A couple of weeks ago, Britain’s Sky News named Delta Air Lines as among carriers to have approached Virgin. Sky also mentioned interest from Gulf carriers, but declined to identify which ones.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
