Delta completes Virgin Atlantic deal
Delta Air Lines has completed the acquisition of 49% of Virgin Atlantic as the two airlines revealed plans to codeshare on 108 routes across North America and the UK.
The US carrier paid US$360 million to Singapore Airlines for the stake in a deal first announced last December.
Completion of the transaction has paved the way for Delta and Virgin to reveal a wide-reaching codeshare agreement as the next step towards a full joint venture.
Virgin will place its code on 91 Delta routes, including trans-Atlantic and domestic US routes, while Delta will codeshare on 17 Virgin routes. They will include recently-launched Little Red domestic UK services from London to Manchester, Edinburgh and Aberdeen.
The agreement also covers reciprocal frequent flyer benefits and lounge access and priority check-in.
The codehare will begin on July 3 with flights able to be booked from June 29. The airlines said corporate and travel agency customers of both airlines will benefit from “an aligned sales effort on both sides of the Atlantic”.
“This is a strategic investment that enhances Delta’s network with greatly improved access to London Heathrow, the leading marketplace on the trans-Atlantic,” said Delta president Ed Bastian. “As we unite two leading global airline brands in an innovative partnership that focuses on delivering enhanced benefits and services for our customers, we also become a more formidable competitor across the Atlantic.”
Virgin Atlantic chief executive Craig Kreeger said joining forces with Delta will strengthen both airlines.
“We can stand together against the competition and can now offer more destinations, a smoother connecting airport experience and ultimately the best trans-Atlantic on board experience,” he said.
The joint venture was last week approved by the European Commission while the US Department of Justice closed their review of the deal.
But the US Department of Transportation is still analysing the application for antitrust immunity relating to the routes between the US and UK. The review is expected to be completed during the third quarter of 2013 with the JV expected to begin in the first quarter of 2014.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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