Air France-KLM is to buy almost a third of Virgin Atlantic, leaving Sir Richard Branson’s parent company, Virgin Group, with a minority stake.
Sir Richard promised to remain ‘very much involved’ once the deal is concluded.
Air France-KLM is taking a 31% stake, worth £220m, in Virgin Atlantic as part of a four-way joint-venture with US partner Delta.
Virgin Group’s share will fall from 51% to 20%, while Delta will retain 49%.
He said the new joint-venture would be ‘extremely beneficial’ to the airline.
Air France-KLM, said customers would get ‘even more choice between Europe, UK and the United States via twelve hubs on both sides of the Atlantic’ following the deal.
