The FT, which has a solid track record of accuracy on reporting aviation deals, has quite a lot of detail on the potential deal, suggesting that AF-KLM could acquire 5-10% of VS, giving SkyTeam carriers control of the airline.
http://www.ft.com/cms/s/0/193efefa-3...#axzz2DvBR1V4J
One analyst, who declined to be named, said Singapore had realised that it did not wield significant influence at Virgin – and therefore he questioned what level of control the US airline would have.The answer might be found at Air France-KLM. It was considering the case for buying a stake of between 5 and 10 per cent in Virgin Atlantic, said another person close to the potential deal, who stressed no decisions had been taken.
This person said the logic of any transaction involving Air France-KLM would be to secure control of Virgin for SkyTeam – the global airline alliance led by the Franco-Dutch group and Delta.
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If Air France-KLM bought a stake in Virgin, it would purchase equity from Sir Richard’s Virgin Group, which owns 51 per cent of the UK airline.
However, such a development would only happen if Delta were able to reach a deal with Singapore Airlines on its 49 per cent stake in Virgin Atlantic.
Air France-KLM had no appetite to buy a stake of more than 10 per cent in Virgin, added the person close to the matter. The group is the most leveraged of the big European flag carriers and is seeking to cut its debt. Air France-KLM declined to comment.