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SIA sells stake in Virgin Atlantic for $439m

Published on Dec 11, 2012 9:55 PM
A Virgin Atlantic logo is seen at check-in desks at Gatwick airport, in southern England in this Dec 21, 2007 file photo. Delta Air Lines is buying Singapore Airlines' 49 per cent stake in Virgin Atlantic to expand the United States carrier's trans-Atlantic network, the two airlines announced on Tuesday. -- PHOTO: REUTERS

SINGAPORE'S national carrier has agreed to sell its 49 per cent stake in Virgin Atlantic to Delta Air Lines for US$360 million (S$439 million) in cash.

In a statement issued this evening, Singapore Airlines said it had been "evaluating strategic options for the stake for some time, as the investment has not performed to expectations and the synergies the parties originally hoped for have not materialised".

It also said the sale will result in a profit being booked in its accounts.

Singapore Airlines acquired the stake in the United Kingdom-based airline group in 2000.

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