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Monday, December 10, 2012

Branson plans to keep control of Virgin Atlantic, (NYSE: DAL)

Virgin Atlantic will form a joint venture on transatlantic flights with Delta Air Lines if the U.S. carrier buys Singapore Airlines' 49 percent stake in the UK airline, a source close to Virgin said.The source said Virgin founder Richard Branson was not immediately looking to sell any of his 51 percent stake in the UK airline and was "concentrating on working with Delta" which is closing in on agreeing a deal to purchase Singapore's stake.Delta and Virgin plan to set up a revenue-sharing deal on flights between Britain and the U.S., which would involve a code-share agreement, allowing both to sell flights on the other airline and share revenues from ticket sales, the source said.The joint venture could eventually lead to the pair sharing costs and bringing their prices and schedules into line, the source added.

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. Shares of DAL remained unchanged at $10.11. In the past year, the shares have traded as low as $7.83 and as high as $12.25. On average, 9685740 shares of DAL exchange hands on a given day and today's volume is recorded at 0.