Airline passenger news and views

It is common knowledge that Virgin Atlantic is up for sale. This is sad after 26-years of innovative and successful guidance by Sir Richard Branson’s team but the market is changing and consolidation is the name of the game.

Survival, as a prominent player, requires a new partner and probably one with access to new markets and the cash to back expansion.

This is in no way a criticism of what Virgin have achieved to date. They entered the market with one leased plane and everyone laughed. No one is laughing now and Virgin Atlantic is regularly voted as one of the best-loved airlines.   Its customer loyalty and repeat business is almost second to none.

So, Etihad Airways, backed by the oil-rich royal family of Abu Dhabi, have emerged as a potential suitor for Sir Richard’s 51% stake. Singapore Airlines (49%) would almost certainly support such a deal, albeit at a book loss.

There are other potential buyers, including the US carrier Delta but the style of Etihad may be much more compatible with that of Virgin.  Etihad is something of a personal project for Sheikh Ahmed bin Saif Al Nahyan who also owns Manchester City football club.

Even after 26-years, Virgin Atlantic still presents itself as a fun and charismatic airline. It attracts many of its repeat travellers because it engenders a personal rather than corporate style.

Although Virgin will not be in any particular hurry to sell, they must be increasingly concerned by potential impact of the BA/AA tie-up. But, if the airline is to keep its hands-on style then Sir Richard could do a lot worse than Sheikh Ahmed.

The big problem might be for Manchester United supporters !!