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Delta to buy big Virgin Atlantic stake

December 12, 2012, 9:08 amAAP

Delta Air Lines is buying almost half of British airline Virgin Atlantic as it aims to boost its share of the lucrative New York-to-London market.

Delta to buy big Virgin Atlantic stake
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Delta Air Lines Inc is buying almost half of British airline Virgin Atlantic for $360 million as it aims to boost its share of the lucrative New York-to-London market.

Delta says it will form a joint venture with Virgin Atlantic where the two airlines would share money from the flights operated under the partnership.

Sir Richard Branson will still own more than half of Virgin Atlantic, which will continue to fly as a separate airline under its own name.

Landing rights at London's Heathrow Airport are limited. So buying part of Virgin Atlantic will help Delta get a bigger piece of the travel market there.

The joint venture needs approval from US and European regulators. Delta is aiming to have the joint operation running by the end of 2013.

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  1. MIKE D11:59am Thursday 13th December 2012 ESTReport Abuse

    I'm amazed that the Virgin would want to align itself with a US airline. Just so the airline can take a little less than half of the route profits.. US business & Branson business ideologies never struck me as being akin.

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