[Reuters] U.S. carrier Delta Air Lines said it had bought Singapore Airlines‘ 49 percent stake in Britain’s Virgin Atlantic for $360 million (223.7 million pounds) and agreed a transatlantic joint venture with Virgin.

The airlines said they would file an application with the U.S. Department of Transportation for competition clearance

The airlines said they would file an application with the U.S. Department of Transportation for competition clearance: Photo: Wikipedia

Virgin and Delta on Tuesday said under the joint venture they would share costs and revenues on routes between Britain and North America.

The pair plan to cooperate on services between New York and London, with a total of nine daily round-trip flights from London Heathrow to John F. Kennedy International Airport and Newark Liberty International Airport.

“Our new partnership with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the U.K., particularly on the New York-London route, which is the largest airline route between the U.S. and Europe,” said Delta Chief Executive Richard Anderson.

The airlines said they would file an application with the U.S. Department of Transportation for competition clearance and that the deal would need to be reviewed by the U.S. Department of Justice and the European Union’s competition regulator.

The deal will enable Delta to expand at London’s Heathrow airport, a lucrative hub for corporate passengers where landing slots are generally hard to acquire. Virgin is the second-largest carrier at Heathrow after IAG’s British Airways.

Heathrow, Europe’s busiest airport, is operating at close to full capacity after Britain’s coalition government blocked its expansion in 2010.

British entrepreneur Richard Branson said he would…….

Read the full story at Reuters……

 


Reuters
11th Dec, 2012


About these ads
Comments
  1. [...] Delta buys 49 percent Virgin Atlantic stake for $360 million: Reuters [...]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s