2007-10-21 - Delta and Air FranceAir France, Delta sign Trans-Atlantic Joint Venture
Verstärkte Zusammenarbeit zwischen Air France und Delta<br /> Air France and Delta Air Lines signed a joint venture agreement to share revenues and costs on their trans-Atlantic routes.
The deal will encompass combined revenues of approximately US$1.5 billion annually during the first phase of the operation and more than US$8 billion annually for the second phase. Ultimately, the joint venture is expected to increase revenues, competition and customer travel choices on key routes across the Atlantic. The first phase will begin April 2008 and will include all non-stop flights operated by Air France and Delta between Air France's Paris-CDG, Orly, and Lyon hubs, and Delta's Atlanta, New York JFK, Cincinnati and Salt Lake City hubs. It will also include flights operated by both carriers between London-Heathrow and the US. A combined 19 daily flights and more than 4,500 seats per day a 45% increase are expected to be part of the first phase of implementation. By 2010, the agreement will be extended to all trans-Atlantic flights operated by Air France and Delta between Europe and the Mediterranean on one side and North America on the other side, as well as all flights between Los Angeles and Tahiti.
"The launch of this joint venture marks a turning point in our partnership with Delta," stated Jean-Cyril Spinetta, Chairman and CEO of Air France KLM Group. "Our long-standing cooperation paves the way for some particularly interesting opportunities. Since signing the EU-US Open Skies agreement in April of this year, we now benefit from even greater access to worldwide markets offering some of the highest growth potential." Once the 2008 summer schedule comes into effect, many transatlantic flights operated by Air France and Delta between Europe and the US will be sold on a code-share basis.
The joint venture will not lead to the creation of a subsidiary. It will be managed by a steering committee formed by Air France and Delta. The committee will oversee nine working groups responsible for coordinating day-to-day implementation of the joint venture agreement in the areas of network, revenue management, sales and distribution, products and services, frequent flyer program, operations, IT, finance and cargo. The joint venture has an initial term through March 31, 2016 and will renew for subsequent periods of three years with effect from this date.