Singapore Airlines (SIA) has completed due diligence on Virgin Atlantic ahead of purchasing a 49% shareholding and says a formal announcement on the process will be made before the end of the month.
SIA and Virgin unveiled the tie-up last December, signing a memorandum of understanding for the surprise buy into Virgin Atlantic, which owns Virgin Atlantic Airways, Virgin Holidays, Virgin Sun and Virgin Aviation Services, for £600 million ($975 million).
A Virgin spokesman says: "Technically we need the European Commission to give its blessing in completion terms, but we are confident that that will not be a very long process."
Due diligence, begun shortly after the December announcement and originally targeted for completion by the end of January, is believed to have been expanded to cover SIA partnering Virgin in setting up a new Australian low-cost carrier tentatively named Virgin Australia.
SIA said last month that it is examining joining Virgin in the planned start-up, which is to offer low-cost services out of Brisbane using five leased Boeing 737-300s from July. SIA's planned buy into Virgin comes after it failed to purchase 50% of Australia's Ansett from media giant News.
Source: Flight Daily News
