The FINANCIAL -- Delta Air Lines, Air France-KLM and Virgin Atlantic Limited have on May 15 signed definitive agreements paving the way forward for their expanded trans-Atlantic joint venture:
The joint venture agreement signed by Delta, Air France-KLM and Virgin Atlantic sets out the governance as well as the commercial and operational terms of the expanded trans-Atlantic joint venture, according to Delta.
Upon completion, Air France-KLM will acquire a 31 percent stake in Virgin Atlantic currently held by Virgin Group for £220 million.
Virgin Group will retain a 20 percent stake and Chairmanship of Virgin Atlantic.
Delta will retain its 49 percent stake.
Delta, Air France-KLM and Virgin Atlantic will now coordinate efforts to secure the appropriate regulatory approvals.
The airlines’ expanded joint venture will become the preferred choice for customers travelling across the Atlantic offering the most comprehensive route network, convenient flight schedules, competitive fares and reciprocal frequent flyer benefits, including the ability to earn and redeem miles across all carriers. Customers will also benefit from the co-location of facilities at key hub airports to improve connectivity and access to each carrier’s airport lounges for premium passengers.
The signed agreements are all subject to regulatory approvals.