Industry Air France-KLM, Delta Air Lines and Virgin Atlantic strengthen partnership

Virgin Atlantic stated, that all airlines have signed definitive agreements, which are said to be paving the way forward for an expanded joint venture.

Air France-KLM will acquire a 31% stake in Virgin Atlantic. This stake is currently being held by the Virgin Group for over $296 Million. However, the Virgin Group will retain a 20% stake and the Chairmanship of Virgin Atlantic.

Delta is likely to retain its 49% stake.

The signed joint venture agreements set out the governance, as well as the operational terms of an expanded trans-Atlantic partnership between the airlines. Air France-KLM, Delta Air Lines and Virgin Atlantic are now working on securing the approvals.

Virgin Atlantic wrote in a statement: “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.”

Accumulated, Air France-KLM is operating with over 380 aircraft. Both airlines are located in Europe. Delta Airlines is a US-carrier, operating with over 870 aircraft, while Virgin Atlantic is headquartered in the United Kingdom and flies with 46 wide-bodies.