Sir Richard Branson has given an indication that he is prepared to sell a large chunk of his controlling stake in Virgin Atlantic.
Branson, who owns 51% of the airline, told press in the US he intends to remain “a major shareholder” in the airline, but added it was "too soon to say" if that meant retention of his controlling tranche of shares. He also admitted the airline needed a partner to compete against its main rivals, chiefly British Airways.
Branson’s previous insistence on maintaining a controlling stake has always put off potential purchasers, but the indication that he is prepared to down size this will create interest among other carriers.
Currently, the remaining 49% of the airline is owned by Singapore Airlines, which is believed to be keen to sell. Combining this with a part of Branson’s shareholding would give a purchaser control of Virgin Atlantic, and enable it to retain the association with Branson, who is an integral part of the airline’s branding.
Virgin Atlantic is also keen to enter an alliance, something which it has been reluctant to do due to its mainly leisure passenger base. However, Branson has now said he needs the airline to join an alliance to combat the BA/American Airlines partnership.
“I think we will be able to announce within a few months an alliance partner,” he told a US television interviewer.
A Virgin Atlantic spokesman said Deutsche Bank was "looking at all our options" and had still to complete its review.