Singapore Airlines to focus on Asia after Virgin stake offload

The Asia Pacific region should expect more Singapore Airlines flights in the future. Media reports recently indicated that Singapore Airlines would now be focusing more on its fast-growing regional market after the sale of its 49 percent stake in Virgin Atlantic Airways.

According to reports, Singapore Airlines tie-up with Richard Branson-owned Virgin Atlantic Airways could not function properly and achieve profitability ever since the alliance between the two carriers started 12 years ago. Singapore Airlines had invested $966.5 million to acquire a 49 percent stake in Virgin Atlantic Airways.

The reports said that Singapore Airlines is planning to sell its stake in Virgin Atlantic Airways to a leading U.S. carrier Delta Air Lines for $360 million in cash after the deal is finally formalized this year.

Singapore Airlines is considered to be one of the world’s most profitable airlines. The airline in fact had a little say in the manner Virgin Atlantic Airways was run by Richard Branson. The sale of its stake in Virgin Atlantic Airways would allow Singapore Airlines to exit an underperforming investment in the critical European market.