Air France KLM is acquiring a 31% stake in Virgin Atlantic for an estimated $288 million, as the European carrier eyes a new global alliance. Delta Air Lines and China Eastern Airlines are also acquiring a 10% stake in Air France KLM by subscribing new shares through capital increases totaling $881 million, according to a new announcement from KLM.
“The strategic, commercial and capitalistic reinforcement of these partnerships will position Air France-KLM as the European pillar of the leading global airline network,” Air France KLM said in a statement 0n its website.
Under the new joint-venture, Air France-KLM will consolidate its leadership position in the North American and European markets with the largest airline network around 12 powerful hubs on both sides of the Atlantic. They include Amsterdam, Atlanta, Boston, Cincinnati, Detroit, Los Angeles, London Heathrow, Minneapolis-St. Paul, New York-JFK, Paris-CDG, Salt Lake City and Seattle.
The strengthening of this cooperation will take place in accordance with the partnership strategy of Delta, which already holds a 3.2% stake in China Eastern Airlines.