- Title: Air France-KLM shakes up transaltantic alliance with Virgin, Delta
- Date: 28th July 2017
- Summary: ROISSY-EN-FRANCE, FRANCE (FILE) (REUTERS) AIR FRANCE PLANES ON TARMAC
- Embargoed: 11th August 2017 13:12
- Keywords: Europe Asia KLM Brexit Air France alliance Delta Virgin Atlantic China Eastern
- Location: PARIS & ROISSY-EN-FRANCE, FRANCE / SCHIPOL, THE NETHERLANDS, UNIDENTIFIED LOCATION
- City: PARIS & ROISSY-EN-FRANCE, FRANCE / SCHIPOL, THE NETHERLANDS, UNIDENTIFIED LOCATION
- Country: France
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA0026RMU8G7
- Aspect Ratio: 16:9
- Story Text: Air France-KLM unveiled on Friday (July 28) its plans with Virgin Atlantic and Delta Air Lines to combine two overlapping transatlantic joint-ventures, supported by equity deals worth $1 billion, as airlines brace for more competition.
The move is designed to strengthen carriers on the lucrative North Atlantic, where low-cost entrants have shaken up the market, and comes as Britain negotiates to leave the European Union, creating a tangle over access to Heathrow airport.
The new 15-year partnership combines existing joint-ventures between firstly Air France-KLM, Delta and Alitalia, and secondly between Delta and Virgin Atlantic, Air France-KLM said.
At the same time as forging the expanded alliance, Air France-KLM will buy 31 percent of Virgin Atlantic from Richard Branson's Virgin Group for around 220 million pounds ($287 million).
Air France-KLM, Delta Air Lines and Virgin Atlantic have also agreed a so-called 'put' option with Virgin Group that allows Virgin Atlantic to remain in majority UK ownership in the event of a hard Brexit.
On the Asia side, China Eastern Airlines Corp would buy a 10 percent stake in Air France-KLM and form a strategic partnership to improve its presence in the China-Europe market.
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