Hello and welcome to the The Atlantic Update for Wednesday 16 May 2018, providing a weekly bulletin on developments on transatlantic travel between Europe and North America. The Atlantic Update is published every Wednesday morning at 06:00 BST.
Air France-KLM, Delta & Virgin Atlantic agree joint-venture
It was nearly twelve months ago that Virgin Atlantic announced that Air France-KLM was to acquire a 31% stake in Virgin Atlantic from Virgin Group.
This transaction will leave Delta as the single largest shareholder in Virgin Atlantic and Sir Richard Branson’s Virgin Group will cede control of the airline.
As part of this Delta’s respective transatlantic joint-ventures with Air France-KLM and Virgin Atlantic will be combined into one.
Air France-KLM and Delta have yesterday, Tuesday 15 May 2018, announced that all parties have now agreed commercial terms on the joint-venture. This will cover matters such as capacity planning and revenue sharing.
They will now seek regulatory approval from the European Commission and Department of Justice. It is likely that approval will be granted. Given there is no overlap of direct routes between the two joint-ventures, it is unlikely there will be much, if anything, in terms of remedies.
Once regulatory approval has been granted, Air France-KLM will acquire a 31% stake in Virgin Atlantic.
At a minimum, once the enlarged joint-venture comes into effect, you will see reciprocal codesharing and frequent flyer recognition between Air France-KLM and Virgin Atlantic.
Continue reading “The Atlantic Update – Wednesday 16 May 2018”