(Reuters) – The chief executive of Malaysia’s AirAsia is considering a possible takeover bid for British airline Virgin Atlantic, the Sunday Times newspaper reported.
Tony Fernandes, who runs Asia’s largest budget carrier by fleet size, has renewed his interest in the UK airline after previously considering and deciding against a bid, the newspaper said in an unsourced report.
http://in.reuters.com/article/idINIndia-53786020101226?feedType=RSS&feedName=businessNews
By: nJayM - 3rd January 2011 at 20:53
Still a lot of speculation though about sale and is it 51% or 49%
Would they virgin name be lost ?
Still a lot of speculation though about sale and is it 51% or 49%?
If it is 51% it will be Branson himself that sells and that means control is passed to new owner.
If it is the 49% Singapore Airlines own that is sold then the new 49% owner is only a very influential shareholder but does not have the controlling 2 shares when it comes to voting. See this 01 Jan 2011 URL http://www.smh.com.au/business/singapore-air-may-sell-virgin-holding-20101231-19c36.html
Name change – unlikely at the outset even if 51% is sold as the Virgin ‘Brand’ is something Branson has built up since 1984.
By: tommyinyork - 3rd January 2011 at 20:34
Would they virgin name be lost ?
By: nJayM - 28th December 2010 at 10:42
Richard Branson still has control …..
I may be a little out of date, but recall that Branson sold a controlling interest (something like 48% IIRC) in VA to Singapore Airlines some years ago.
It would be interesting to see the outcome of mixing the 2 cultures, as AA are at the very low end of the market, whereas VA are at the opposite end. 🙂
Richard Branson still has control “……..has a 51 percent stake in the airline he founded in 1984.” to quote from http://in.reuters.com/article/idINIndia-53786020101226?feedType=RSS&feedName=businessNews (opening item in this thread)
If Singapore Airlines has 49% in VA also in the same Reuters news report, the question is what share is Air Asia attempting to acquire ?
The same report states that AirAsia is attempting a “takeover bid” – this implies but isn’t a fact as yet, that AirAsia are or will acquire a stake to actually take control of VA.
The big dividing line is the magic figure of 50% to take control although anyone with 49% has great influence in all corporate decisions but can be outvoted on the Board.
The bigger culture and political mix will be if AirAsia buy out Branson’s 51% and Singapore Airlines do not sell their 49% stake. Singapore Airlines is extremely high end standards.
By: Pacific flyer - 28th December 2010 at 07:06
I may be a little out of date, but recall that Branson sold a controlling interest (something like 48% IIRC) in VA to Singapore Airlines some years ago.
It would be interesting to see the outcome of mixing the 2 cultures, as AA are at the very low end of the market, whereas VA are at the opposite end. 🙂
By: nJayM - 27th December 2010 at 18:07
Is Branson in the selling mood ?
Is Branson in the selling mood?
Maybe as his new baby to my knowledge is Virgin Galactic http://www.virgingalactic.com/
Why AirAsia, what about “Singapore Airlines paid 600 million pounds for a 49 percent stake in Virgin Atlantic in 2000″.
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December 27, 2010 at 6:07 am