Sir Richard Branson's airline is promising passengers cheaper fares as it joins forces in the transatlantic market

Virgin Atlantic has promised passengers cheaper fares after nailing a £224million tie-up.

Sir Richard Branson’s airline vowed to pile pressure on arch rival British Airways after finalising a deal with US carrier Delta...


Delta is buying a 49% share of Virgin Atlantic from Singapore Airlines, which has been left nursing a near £380m loss after shelling out £600m for the stake in 2000.

The deal will allow Delta and Virgin to join forces in the profitable transatlantic market, in which BA is a big player.

BA, which dominates the prized take-off and landing slots at Heathrow, is able to run 15 flights a day between London and New York thanks to an alliance with American Airlines.

Delta and Virgin Atlantic will have nine flights a day on the route if the joint venture is approved by regulators, and 31 a day between the UK and the US as a whole.

In future passengers will also be able to share frequent flyer perks and their airline lounges.

The deal also allows the two airlines to link up domestic flights in the US and Virgin Atlantic’s new UK arm.

Virgin Atlantic chief Steve Ridgway told Your Money: “The transatlantic route is hugely competitive. The stronger the competition, the better consumers do.

“Virgin Atlantic’s role is pretty legendary in competing fiercely and keeping prices competitive and that’s exactly what we will be able to do.”

On BA, he said: “We have fought pretty valiantly for 28 years, we will continue to do that and we’ll be able to do it from a stronger position.”

Sir Richard, who will retain his 51% stake in the airline, said: “This is an exciting day in Virgin Atlantic’s history. It signals a new era of expansion, financial growth and many opportunities for our customers and business.”

Ridgway, who is stepping down next February, dismissed talk that the latest deal with Delta would lead to the Virgin Atlantic brand eventually disappearing from the skies.

Airline chief Willie Walsh ramped up a war of words with Virgin tycoon Sir Richard with a bizarre “knee in the groin” wager.

Walsh, head of British Airways owner International Airlines Group, predicted Virgin Atlantic wouldn’t exist in five years after the Delta deal.

Branson hit back, inviting Walsh to put his money where his mouth is with a £1million bet. Walsh, on a visit to South Korea, responded: “I don’t think a million pounds would hurt him.

"I don’t have a million so maybe a bet that would be as painful to him as it might be to me... a knee in the groin would be a fair bet.”

Walsh fanned the flames further by saying he didn’t respect Branson, either.

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