Air France-KLM, Delta Air Lines and Virgin Atlantic have today signed definitive agreements paving the way forward for their expanded transatlantic joint venture (JV).
The JV agreement signed between Air France-KLM, Delta and Virgin Atlantic sets out the governance as well as the commercial and operational terms of the wider JV.
Upon completion, Air France-KLM will acquire a 31 per cent stake in Virgin Atlantic currently held by Virgin Group for £220 million. Virgin Group will retain a 20 per cent stake and chairmanship of Virgin Atlantic. Delta will retain its 49 per cent stake.
Air France-KLM, Delta and Virgin Atlantic will now coordinate efforts to secure the appropriate regulatory approvals.
The airlines say an expanded JV will “become the preferred choice for customers” travelling across the Atlantic Ocean 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.