Air France-KLM has signed definitive agreements with Delta Air Lines and Virgin Atlantic for the expansion of their trans-Atlantic joint venture (JV).
The agreements outline the governance, as well as the commercial and operational terms of the expanded JV, which was originally announced in July.
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As part of the deal, Air France-KLM will buy 31% share in Virgin Atlantic from Virgin Group for £220m.
Following the completion of the deal, Virgin Group will retain a 20% interest and chairmanship of Virgin Atlantic, while Delta will retain its 49% stake in Virgin Atlantic.
The deals are subject to regulatory approval.
In a joint statement, Air France-KLM said: “The airlines’ expanded joint venture will become the preferred choice for customers travelling across the Atlantic offering the most comprehensive route network, convenient flight schedules, competitive fares and reciprocal frequent flyer benefits, including the ability to earn and redeem miles across all carriers.
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By GlobalData“Customers will also benefit from the co-location of facilities at key hub airports to improve connectivity and access to each carrier’s airport lounges for premium passengers.”
Italian carrier Alitalia is also involved in the JV, which is expected to be operational for least 15 years. Air France-KLM holds a 25% share in the airline.
