Air France-KLM, Delta Air Lines and Virgin Atlantic to Form Joint Venture
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
To establish the joint venture, Air France-KLM will acquire Virgin Group’s 31% stake in Virgin Atlantic for £220 million, reducing the British-owned stake of one of the UK’s most famous brands from 51% to 20%. Despite this, Virgin Atlantic will retain its independence as a British airline with a UK air operating certificate, and will continue to fly under the Virgin brand. Furthermore, Delta and China Eastern (who are already joint venture partners) will each acquire a 10% stake in Air France-KLM worth €751 million.
In a statement about the newly-announced agreement, Richard Branson said, “I’m delighted to say that we’ve agreed with Air France-KLM and Delta our collective intention to form a four way strategic joint venture, which will be extremely beneficial to our airline, our customers and the brand we all love so dearly. We’ve also agreed with our partners how important it is the Virgin Atlantic brand lives on as part of our arrangement.” For Delta, this new agreement is an enhancement of its long-standing joint venture with Air France-KLM, which dates back to 2009, with the addition of Alitalia in 2010.
This joint venture will offer passengers more convenient flight schedules thanks to added frequencies, and the ability to earn and redeem miles across all carriers. This means that Virgin Atlantic Flying Club members will be able to earn and redeem when flying on Air France-KLM, which hasn’t been possible before.
The benefits of the new venture also include co-location of facilities at key airport hubs to improve connectivity times for customers. It’s still too early to know the specifics, but it’s likely that there will be a shuffling of airlines in Atlanta (ATL), Paris (CDG) and London (LHR) to reflect the new relationship. For example, at LHR, we’ll most likely see Air France-KLM move its operations to Terminal 3, which is already home to Delta and Virgin Atlantic.
Thanks to this new relationship, there will be more than 300 daily nonstop transatlantic flights among the four airlines connecting key markets for the airlines including Amsterdam (AMS), Atlanta (ATL), Boston (BOS), Cincinnati (CVG), Detroit (DTW), Los Angeles (LAX), London-Heathrow (LHR), Minneapolis-St Paul (MSP), New York-Kennedy (JFK), Paris-Charles de Gaulle (CDG), Salt Lake City (SLC) and Seattle (SEA).
This is great news for passengers — four huge players in the industry are deepening their relationship to provide more flights, increased frequencies, and more ways to earn and redeem miles across all four airlines. Since Delta, Air France and KLM are members of the SkyTeam alliance,the ability to earn and redeem miles on each other’s flights already exists. This means that Virgin Atlantic flyers will notice the biggest changes, as their tickets, miles and status currently have no connection whatsoever with Air France or KLM. Passengers will be pleased, too, when the airlines complete co-location at key hubs, as connections will be much smoother and it will give passengers greater access to the combined networks of the four airlines. Stay tuned to TPG for more coverage of this developing story.
Featured image courtesy of Virgin Atlantic.
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases within the first three months of card membership. Plus, earn a $200 statement credit after your first Delta purchase within the first three months. Offer ends 7/28/21.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles after spending $3,000 in purchases on your new Card in your first 3 months and a $200 statement credit after you make a Delta purchase with your new Card within your first 3 months. Offer expires 7/28/2021.
- Limited Time Offer: Plus, get a 0% intro APR on purchases for 12 months from the date of account opening, then a variable 15.74%-24.74%. Offer expires 7/28/2021.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees