Delta to Acquire 10% of Air France-KLM, Combine Separate Joint Ventures

By Paul Riegler on 27 July 2017
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IMG_4579 (1)Delta Air Lines said Thursday it plans to acquire a 10% stake in Air France-KLM, one of three cross-border investments the airline’s partners will make. It also plans to combine its current but separate joint ventures with Air France-KLM and Virgin Atlantic.

China Eastern, a Delta partner, will also acquire 10% of Air France-KLM, while Air France will in turn buy a 31% stake in Virgin Atlantic from parent Virgin Group.

Delta already owns 49% of Virgin Atlantic as well as 3.2% of China Eastern. The Atlanta-based carrier also has a trans-Atlantic joint venture with Air France-KLM.

All of the transactions are subject to shareholder and regulatory approval.

“A dynamic global landscape means it’s more important than ever for Delta to deepen ties with our global partners to provide opportunities for mutual growth,” said Delta CEO Ed Bastian in a statement. “Bringing together the strengths of Delta, Air France-KLM and Virgin Atlantic into a combined joint venture will create the trans-Atlantic partnership of choice for customers.”

The expanded joint venture will offer almost 300 daily non-stop transatlantic flights.

(Photo: Accura Media Group)

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