The new partnership is expected to “strengthen” both airlines and offer seamless trans-Atlantic services. Image: The Globe and Mail

Confirming speculations, Delta Air Lines has announced it will purchase Singapore Airlines’ 49 percent stake in Virgin Atlantic.

The US$360 million agreement will make Delta the second largest stake holder in Virgin Atlantic, following Sir Richard Branson, who will retain his majority 51 percent stake.

As part of its new partnership with Virgin Atlantic, Delta will apply for an antitrust immunity, to allow closer coordination on schedules and operations and expects the sale and regulatory approval to be finalised by the end of 2013.

Reassuring the carrier will continue to retain its brand and operating certificate, Virgin Atlantic said the arrangement was designed to expand its trans-Atlantic network as well as increase competition between the UK and North America with 31 peak-day round-trip flights.

Delta chief executive Richard Anderson added that the new partnership will “strengthen” both airlines and further assist the travelling public.

Earlier this week Virgin Atlantic founder Richard Branson lashed out at British Airways chief Willie Walsh, betting the rival’s boss the Virgin airline will survive the market.

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