From today's Scotsman. Interesting that the market doesn't think much of the merger plans - and I note as well the incorrect(?) information about Air Holdings buying DAT for €1 - wasn't that thrown out by the Brussels Commercial Court?
[quote]Virgin confirms talks with Sabena successor
Martin Flanagan
SIR Richard Branson’s Brussels-based airline Virgin Express is in exclusive talks to merge with Delta Air Transport, the successor to the bankrupt Sabena airline, it was confirmed today.
Virgin Express said it was in talks with the firm - bought last week by a group of Belgian investors from administrators for one euro - aimed at creating a single Belgian airline and reviving the country’s airline industry.
This follows the collapse of Sabena, the former Belgian national flag carrier, on 7 November. Speculation had first surfaced about a potential deal last weekend, with Virgin at that time declining to comment.
The plans are that the two airlines would be integrated under a new brand name, creating a Brussels-based business-oriented carrier serving the main European destinations, while also targeting cost-conscious leisure travellers.
Virgin Express said in a statement: "The objective of the discussions is to explore the benefits of a possible merger of the two companies to create a single Belgian airline that would benefit from the strengths of both companies and aimed at reviving the Belgian airline industry."
The pair are aiming to complete merger talks during the first quarter of 2002, subject to approval by the EC authorities and Virgin Express shareholders.
While talks are ongoing, Virgin and DAT will continue to compete as separate companies.
Virgin and the DAT investors also agreed yesterday to extend their commercial agreement signed on 14 November until 28 March 2003. The previous deal on a code-sharing agreement on some of DAT’s and Virgin’s shared routes lasted until 13 December.
David Hoare, chairman of Virgin Express, said: "We are very excited by the prospect of participation in this venture and hope that our discussions will culminate in the successful creation of a new company early in 2002."
However, the stock market gave the thumbs down to the potential merger. Virgin’s stock, quoted on the Euronext exchange in Brussels, was flat before the news, but subsequently nosedived almost 10 percent to 6.56 in light volume. Virgin Express added that it remains on track "to deliver an almost break-even operating result for year-end". <hr></blockquote>