Flight International - 10Dec2019

AIR TRANSPORT

10 | Flight International | 10-16 December 2019 flightglobal.com

R

ichard Branson is abandoning

plans to sell a 31% stake in

Virgin Atlantic to Air France-

KLM for £220 million ($285 mil-

lion) following US anti-trust

approval for the UK airline’s

enhanced partnership with the

Franco-Dutch group and partner

Delta Air Lines.

The Virgin Group founder

agreed to sell the stake back in

2017, to ensure approval for joint

operations between the three air-

lines on flights between Europe

and the USA.

“To get the deal done, we

initially thought our family

would need to reduce its share-

holding in Virgin Atlantic,”

Branson wrote in a letter to em-

ployees that was shared on the

Virgin Group website. “I was

willing to do so, reluctantly, to

guarantee the long-term success

of Virgin Atlantic.”

His holding in the carrier

would have reduced to 20%.

But, following approval by the

relevant competition authorities,

and the US Department of Trans-

A

via Prime, the Czech Repub-

lic-based MRO firm, is to

take a 99% stake in Belgrade air-

port-based Jat Tehnika.

Serbia’s economy ministry

says Avia Prime was the sole bid-

der during a third privatisation

effort, under which submissions

were accepted in late October.

Swiss provider SR Technics –

itself recently up for sale – also

requested information about Jat

Tehnika but did not then submit

an offer, the ministry notes.

An asking price of €10.3 mil-

lion ($11.3 million) was set by

the ministry – the same amount

as specified for a previous bid-

ding round in September.

During the first phase,

port’s waving through of the deal

on 21 November, Branson says he

will now be able to maintain his

current holding while the part-

nership is extended.

Branson highlights that Virgin

Atlantic originally sought allies

in order to compete with British

Airways, especially after its

larger rival and American Air-

lines announced a partnership on

UK-US flights in 2008.

“Remarkably, the most impres-

sive of the large airlines, Delta,

was there to form an alliance

with us. And they have been the

best partners we could have

wished for. That still left our fam-

ily in control and owning the air-

line,” he says.

But the UK flag carrier still had

an edge, thanks to its large Euro-

pean network. Virgin Atlantic’s

response was to widen its part-

nership with Delta to include Air

France-KLM. “The expanded

joint venture with Delta and Air

France-KLM remains an essential

part of our future and long-term

success,” he says.

He notes that 2019 has brought

the airline’s introduction of new

Airbus A350s to its fleet, as well

as orders for A330neos, and it has

taken control of Flybe, to be re-

branded as Virgin Connect.

“As we enter 2020, the 50th

birthday year for the Virgin

Group, there is more excitement

ahead, with the launch of our first

South American route to Sao

Paulo,” Branson adds. “And as

well as expanding our partner-

ship with Delta, Air France and

KLM, we will see more red

planes flying around Britain, as

Virgin Connect starts flying under

the Virgin brand.” ■

launched in June, the ministry

had asked for €20.5 million.

However, neither of the first two

rounds attracted any offers.

The ministry said after the sec-

ond round in October that “cer-

tain issues” found during the pro-

cess had to be “resolved

beforehand in order to carry out

this [privatisation] procedure in a

proper and efficient manner”.

Avia Prime owns Slovenian

MRO provider Adria Tehnika

and Polish line-maintenance

company Linetech.

Based at Belgrade’s Nikola Tesla

airport, Jat Tehnika specialises in

the support of Airbus A320-family

jets, Boeing 737s and ATR turbo-

props. The company recently

gained approval to serve Sukhoi

Superjets, notes Avia Prime.

It adds that Jat Tehnika’s facili-

ties comprise two hangars along

with an engine shop with a test

cell plus “very modern and capa-

ble workshops that cover virtual-

ly all base maintenance needs”.

Arguing that “every smaller

MRO needs a strong partner”,

Avia Prime chief executive Piotr

Kaczor states that the enlarged

group’s “greatest asset is the com-

plexity of [its] offer”. ■

FINANCE CIRIUM LONDON

Branson says he will retain Virgin stake

UK carrier’s founder will not need to reduce holding in airline following clearance for three-way transatlantic tie-up

MAINTENANCE CIRIUM LONDON

Czech MRO firm Avia Prime snaps up Jat Tehnika

AirTeamImages

Jat Tehnika

Partnership includes Air

France-KLM and Delta

Serbian provider

supports several

short-haul types