Deutsche to weigh up Virgin Atlantic’s options

Sir Richard Branson has hired Deutsche Bank to assess strategic options for Virgin Atlantic after British Airways' partnership with American Airlines.

Deutsche will reportedly cover all the angles in its assessment of Branson's airline, including finding ways to maximise value and profit.

One possibility is that Sir Richard could sell down his stake in a move that would allow Virgin Atlantic, which is valued anywhere between £500m and £1bn, to become part of a wider airline grouping. 

This would then see him receive royalty payments for use of the Virgin brand.

A long-term possibility is a merger between Virgin Atlantic and BMI, which is currently owned by Lufthansa. BMI owns 10 per cent of Heathrow slots and its medium-haul network would act as a valuable feeder to Virgin's long-haul flights.

Mark McVicar, an analyst at Nomura, said: "Virgin is becoming increasingly detached as BA, Iberia and American get up and running. An independent airline strategy looks tougher now."

Read a full report at the Daily Telegraph. ·