Delta and Virgin Atlantic to jointly operate flight pairs

Strategic air freight alliance: Delta Air Lines acquires 49 per cent stake in Virgin Atlantic
 
Delta Air Lines and Virgin Atlantic Airways plan to form a joint venture, as the two airlines unveiled on 11 December. The joint venture partners intend to strengthen their positions on the transatlantic routes, particularly on the routes linking the UK and North America.
 
In the frame of this joint venture Delta invests USD 360 million in Virgin Atlantic and acquires a 49 per cent stake in the company. This share is currently held by Singapore Airlines. The Virgin group and Richard Branson will keep their 51 per cent stake. The airline will continue to fly under its Operating Certificate and keep its brand name Virgin Atlantic Airways.
 
Both airlines will apply for antitrust exemption at the U.S. Department of Transportation, allowing tight cooperation and mutual coordination of flight schedules and flight operation. The transaction will also be inspected by the U.S. Department of Justice, the European Union’s competitive authority and other authorities. The takeover of the stake and the forming of the joint venture shall be completed by the end of 2013.

Quelle: LogEastics

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