Delta Air Lines buys Virgin Atlantic stake from Singapore Airlines

Delta Air Lines Inc said it was buying Singapore Airlines Ltd's 49% stake in Virgin Atlantic for $360 million, ending the Asian airline's disappointing 12-year investment in the British carrier.

The sale by Singapore Airlines, 56% owned by state investor Temasek, underscores its reduced reliance on battered long-haul routes to Europe and the United States and its deeper focus on Asia.

The sale by Singapore Airlines came after sources familiar with the matter said Delta, the second-largest US airline by operating revenue after United Continental Holdings, wants to gain access to Virgin's landing rights at London's Heathrow airport.

Heathrow is a lucrative hub for corporate passengers where landing slots are hard to acquire.

The deal, which Delta said would lead to a trans-Atlantic joint venture with Virgin Atlantic, is subject to regulatory clearance in the United States and Europe.

Singapore Airlines bought 49% of Virgin Atlantic for 600 million pounds in 1999, but wrote off goodwill amounting to 96% of its purchase price of Virgin.