Delta Air Lines and Virgin Atlantic Airways Form Joint Venture
OREANDA-NEWS. Delta Air Lines (NYSE: DAL) and Virgin Atlantic Airways Ltd. today welcomed the decision by the U.S. Department of Transportation to approve the carriers' joint venture by granting antitrust immunity on routes between North America and the U.K. The DOT's ruling is confirmation of the clear consumer benefits of the partnership and will allow the carriers to deepen their cooperation, offering more flight choices for travelers on both sides of the Atlantic and in particular improving the travel options for business customers in the New York to London market.
Ed Bastian, Delta's president said: "We are delighted that the Department of Transportation recognizes that the immunized partnership offers significant advantages to customers. The freedom to cooperate fully with Virgin Atlantic will initiate a new era of greater competition in the New York to London market where it is much needed. We have a proven record in making joint ventures succeed and we look forward to building our relationship with Virgin Atlantic."
In their filing to the DOT, Delta and Virgin Atlantic noted that nearly 60 percent of the slots at London Heathrow Airport are controlled by British Airways and its joint venture partners. As a result, the carriers dominate air travel between the U.S. and the U.K, including the New York-London market, the most important business market in the world. By combining Virgin Atlantic's Heathrow slots and U.K. brand strength with Delta's powerful U.S. network, the joint venture will offer significant competition in the market and benefit consumers on both sides of the Atlantic.
Craig Kreeger, Virgin's CEO added: "Today represents a huge opportunity for both Virgin Atlantic's passengers and our business. Our partnership with Delta means we will be able to offer convenient aligned schedules and a much broader network, giving the best possible travel choices and on board experience to trans-Atlantic passengers. For almost 30 years Virgin Atlantic has offered an award-winning experience and service to passengers traveling across the Atlantic, and today's ATI approval means we can build on this momentum and improve the consumer landscape at Heathrow for the better."
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