Analyst is lukewarm about SIA’s sale of Virgin stake
Singapore Airlines may see a short-term boost if it sells its 49% Virgin Atlantic stake, but investors should remain focused on the carrier’s long-term challenges, say analysts at CIMB Research in Singapore.
SIA revealed this week it is considering a sale of its 49% Virgin Atlantic stake "to interested parties" with the US airline Delta seen as the most likely buyer.
"We see a near-term boost for SIA’s share price if this deal does go through since Virgin has not contributed markedly to SIA’s bottom line," CIMB noted.
"Longer term, however, this sale does not aid SIA in its attempt to fend off low-cost carriers or Middle Eastern carriers."
CIMB also questioned the timing of any deal. "The operating environment for airlines remains fragile, and we believe SIA may not receive full value for its Virgin Atlantic stake."
The European Union requires that EU carriers be under European control, meaning Delta would need to partner an EU airline, most likely Skyteam partner Air France/KLM, if it wanted majority control of Virgin.
In the UK, however, it is being reported that Richard Branson intends to keep his majority 51% stake in Virgin Atlantic.
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt