VIRGIN ATLANTIC AND DELTA are to form a new transatlantic joint venture after the US airline agreed to buy to buy Singapore Airlines’ 49 per cent stake in Virgin for US$360 million. As part of the deal, Virgin Atlantic will retain its brand and operating certificate while Sir Richard Branson’s Virgin Group will continue to be the majority shareholder, with a 51 per cent stake. Delta’s purchase will allow the two airlines to challenge the British Airways-American Airlines joint venture across the Atlantic.
The agreement includes a fully integrated joint venture that will operate on a “metal neutral” basis, with both airlines sharing the costs and revenues from all joint venture flights; a combined transatlantic network between the UK and North America with 31 peak-day round-trip flights; reciprocal frequent flyer benefits; and shared access to Delta Sky Club and Virgin Atlantic Clubhouse airport lounges for premium passengers. Branson said: “This signals the start of a new era of expansion, financial growth, and many opportunities for our customers and our business. We have always been known for our innovation and service, and have punched above our weight for 28 years. We will retain that independent spirit but move forward in a strengthened partnership with Delta.” Added Delta CEO Richard Anderson: “Our new partnership
with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the UK.”
COMPETITION IN BRIEF
■ ATPI HAS BEEN purchased in a management buy-out for an undisclosed sum with the help of a new financial backer. Previous owner Equistone Partners Europe sold the TMC to ATPI’s bosses with backing from investment firm Intermediate Capital Group. ATPI, which employs 1,400 people across 52 global offices, will continue to be led by current CEO Graham Ramsey following the change of ownership.
WIN A LUXURY TRIP
TO JORDAN BUYING BUSINESS TRAVEL has teamed up with Royal Jordanian Airlines and Mövenpick Hotels to offer BBT readers a luxury four-day break in Jordan for two, flying business class with Royal Jordanian and staying at the five-star Mövenpick Resort & Spa Dead Sea. For a chance to win, download the Buying Business Travel
app from your app store (available for Apple, Android and Blackberry) – search for ‘Buying Business Travel’. You will then receive the special competition digital edition of BBT with details of how to enter.
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I don’t have £1 million, so a knee in the groin, maybe – that would be as painful to him as it might be to me. s response to Sir Richard Branson’
IAG boss Willie Walsh’ s £1m bet that the Virgin brand will still be around in five years’ time
■ PRIVATE AVIATION SPECIALIST Air Charter Service (ACS) has opened an office in Almaty, Kazakhstan’s former capital and largest city. ACS now has 17 offices around the world. The office will be headed by Evgeny Galkin, who was previously manager at the company’s Moscow office.
TMCs
Eyjafjallajokull
‘SECURITY IS KEY IN 2013’
SECURITY CONCERNS – and not the cost of travel - will be the biggest priority for travel buyers during 2013, according to travel management company HRG. Clients will continue to consolidate
their travel programmes but one of the main drivers for this move will be to keep track of their travellers in case of emergency, said HRG’s group commercial director Stewart Harvey. “Security is the top issue in all new
tenders, literally jumping from the back of the document to the front,” added Harvey. “In 2012 we saw more clients put security before cost concerns and we expect this trend to continue in 2013. “Incidents like the Icelandic volcano eruption [at Eyjafjallajokull] and the Arab Spring were significant wake-up calls for corporates, who are now more focused on how on to keep track of their employees in the event of an emergency.” But Harvey added that travel costs would
always remain “important to clients”, and that prices were likely to increase next year with unbundling making “price increases less transparent”. “The core ticket price may only rise by 1
per cent, but individual ancillary fees, such as baggage fees and onboard food and services, are likely to rise by 6-8 per cent,” he warned. HRG expects that buyers will want
consolidate in three major areas next year: consolidation, compliance and control. “First and foremost, corporates want to
bring everything together into one place,” said Harvey. “Clients want the ability to see all of their travel-related data – including spend and traveller location – at the touch of a button. “They also want to fine-tune policies so
that they better encourage cost-effective behaviour and, finally, to keep travel spend down through employee compliance.” Harvey also predicted that buyers would
increasingly use smartphone products that could be “aligned with corporate travel policies in order to drive compliance and reduce overall spend”.