SkyTeam allies woo Virgin Atlantic

Air France-KLM and America’s Delta are understood to be trying to tempt Sir Richard Branson’s airline to join their transatlantic SkyTeam alliance.

The joint venture, which was set up in May 2009, allows partners to share revenues and costs and to co-ordinate their flight schedules.

But the consortium, which is being advised by Goldman Sachs, faces competition from airline Etihad, which is owned by the ruling family of Abu Dhabi.

The group has previously expressed an interest in Virgin Atlantic and it has drafted in Bank of America Merrill Lynch to advise it on a possible deal.

A Virgin spokeswoman said: “Virgin Atlantic is a strong, independent business with a good growth position at both London Heathrow and Gatwick, so we are not surprised that there is interest in us.”

Sir Richard hired Deutsche Bank last year to look at the options for his 51 per cent stake in the airline.