U.S. and U.K. regulators have approved Delta Air Lines Inc.’s deal to acquire a 49 percent stake in Virgin Atlantic Airways Ltd., the companies announced June 24.
Under a code-sharing agreement between the two airlines that is tied to the joint venture, Virgin Atlantic customers will have access to 91 Delta routes – many of which traverse North America, while Delta customers will have access to 17 Virgin Atlantic routes – the bulk of which are trans-Atlantic flights.
The agreement provides customers of each carrier with additional flight options and reciprocal frequent-flyer benefits. Customers will be able to take advantage of the code-sharing agreement for travel beginning July 3.
Delta, which is based in Atlanta, and Virgin Atlantic, which is based in London with its U.S. headquarters in Norwalk, first announced their intention to enter into a joint venture last December. The Virgin Group, led by billionaire Richard Branson, will retain its 51 percent stake in Virgin Atlantic Airways. The stake acquired by Delta was previously owned by Singapore Airlines.
“This is a strategic investment that will enhance Delta’s network and create a trans-Atlantic joint venture between the U.S. and the U.K., which is going to be a $3 billion entity,” said Ed Bastian, president of Delta, on a conference call.
Virgin Atlantic CEO Craig Kreeger said that “because of the nature of our route network and customer base being so concentrated in the United States and the U.K., the Delta deal for us is the most important thing we can do.”
