Tuesday, December 11, 2012
Delta, Virgin Atlantic to Form Trans-Atlantic Joint Venture
Delta Air Lines has reached an agreement to acquire a 49 percent stake in Virgin Atlantic for $360 million. Delta will acquire the 49 percent stake currently held by Singapore Airlines, and Virgin Group will retain the majority 51 percent stake.
The share purchase and joint venture are expected to be complete by the end of 2013, Delta said. The transaction is still under review by European and American regulatory authorities.
"Our new partnership with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the U.K., particularly on the New York-London route, which is the largest airline route between the U.S. and Europe," said Delta CEO Richard Anderson.
The agreement will create a full integrated join venture with both airlines sharing costs and revenues from all joint venture flights.