Sir Richard Branson of Virgin Atlantic strategic review begins
The founder of Virgin Group that owns the 51pc of Virgin Atlantic, has asked the German bank to investigate the position of the company on the market in the wake of British Airways with American Airlines - transatlantic docking an alliance that Sir Richard is vehemently opposed.
Deutsche, which is supposed to be vast, work includes assessing how Sir Richard can maximize the value of his company, which is 49pc belonging to Singapore Airlines and evaluated by analysts of anywhere between 500 m £ and £ milliard.Un insider said that Deutsche "sought to the landscape.
An option would Sir Richard to sell his stake for Virgin Atlantic, which has sales of £ transmitters, being part of a broader - potentially with Lufthansa or carrier Gulf, such as the United Arab Emirates or Ethihad.Il shall then receive royalties for the use of the Virgin brand airline grouping.
Sir Richard, who last year celebrated 25th anniversary the company his, was forced to re-evaluate its options in aviation consolidation market which saw two key moves by arch-rival BA.
Looming £ 6bn fusion UK flag-carrier with Iberia and the partnership with American Airlines left Virgin Atlantic look more in more isolated - particularly as a result property of the trio further 40pc Heathrow take-off and landing slots and regulatory approval to cooperate on rates and loyalty programs.
Sir Richard airline remains a major player in Heathrow, around 3pc slots, but outside of one of the top three companies air groups - the Star Alliance, featuring United, SkyTeam, including France Delta, and OneWorld combination of BA air and Lufthansa.
Mark McVicar, an analyst at Nomura, stated: "Virgin is becoming more detached as BA, Iberia and American fonctionne.Une independent airline strategy is now stronger."
One of the aspects of the work of the Deutsche are to assess whether the Virgin Atlantic should attempt to join Star or SkyTeam - but either move could trigger a change in ownership to Sir Richard carrier.
Its position is complicated by the holding of Singapore Airlines, Star Alliance member paid 600 m £ for his Virgin Atlantic participation in 1999, which has since written to zero.It attempts to sell holding periodic.
An option in the long term remains a fusion between Virgin Atlantic and Bmi, another star now owned Lufthansa.Sir Richard long coveted property of 10pc cracks from Heathrow and its medium-haul could use to feed haul Virgin network Bmi 30 destinations.
Talks between the two companies broke an agreement in 2008 - and did not revived after Lufthansa last year expensive 223 million from £ to take control of the deficit Bmi.
More long term, however, address that remains the examination would Sir Richard to inject a new company Virgin Atlantic and Lufthansa inject Bmi.alors German carrier would take the majority of the new company, control would use Virgin and Star Alliance to take on the licence and Heathrow.Singapour OneWorld partners brand could see his participation diluted or exit.
Such an agreement is complicated by current assessments, or Virgin Singapore willing to match evaluation of Lufthansa's Bmi - or Lufthansa match evaluation of Singapore vierge.Une city source said, however: "It remains the major airlines agreement if anyone can operate on how to do".
Virgin has refused to comment.
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