Delta Air Lines and Virgin Atlantic Airways have reached an agreement for a new joint venture that will create an expanded trans-Atlantic network and enhance competition between the U.K. and North America, offering greater benefits for customers travelling on those routes.
As part of this joint venture agreement, Delta will invest $360 million in Virgin Atlantic, acquiring a 49 per cent stake currently held by Singapore Airlines. Virgin Group and Sir Richard Branson will retain the majority 51 per cent stake and Virgin Atlantic Airways will retain its brand and operating certificate.
Highlights of the agreement include:
> A fully integrated joint venture that will operate on a “metal neutral” basis with both airlines sharing the costs and revenues from all joint venture flights
> A combined trans-Atlantic network between the United Kingdom and North America with 31 peak-day round-trip flights
> Enhanced benefits for customers including cooperation on services between New York and London, with a combined total of nine daily round-trip flights from London Heathrow to John F. Kennedy International Airport and Newark Liberty International Airport
> Reciprocal frequent flyer benefits
> Shared access to Delta Sky Club and Virgin Atlantic Clubhouse airport lounges for elite passengers
The airlines will file an application with the U.S. Department of Transportation for antitrust immunity, which will allow a closer relationship and coordination on schedules and operations. The transaction also will be reviewed by the U.S. Department of Justice and the European Union’s competition regulator and other relevant authorities. The share purchase and the joint venture are expected to be implemented by the end of 2013.
The announcement came just 48 hours after Virgin Atlantic laid out its plans for new Anglo-Scottish services and the SPAA has been assured the airline's domestic flying plans will not be adversely affected by the Delta partnership ...
From Aberdeen to Australia, Manchester to Mumbai and Edinburgh to the East Coast, Virgin Atlantic passengers around the UK will now be able to enjoy seamless connections to the airline’s long haul destinations with the launch of Virgin Atlantic’s domestic flying programme.
Sir Richard Branson’s airline has confirmed that it will challenge British Airways head on by operating 24 domestic flights a day - six daily return flights to Edinburgh, three to Aberdeen and a further three to Manchester - starting from 31 March 2013.
The flights, which will operate from London Heathrow Terminal 1, will go on sale on the 19th December and start from £99 per person return.
Virgin Atlantic Chief Executive, Steve Ridgway commented; “This is the beginning of an exciting new era in Virgin Atlantic history. It’s been a long time coming but the dawn of our short haul service is now just a few months away. We’ve worked hard to produce the sort of operation that consumers have come to expect from us – with customer service and a unique approach to flying forming the key pillars for our new domestic routes.
“Most importantly, passengers will reap the benefits of increased choice and lower fares due to the re-injection of vital competition we can provide on these routes.
“We’ll be offering nine daily services to and from Scotland and three return flights between Manchester and London, giving us the scope to fly around one million passengers per year. Connecting passengers onto our long haul flights means we are truly making the world a smaller place.”
The airline will be providing passengers with the best in British food and snacks on board, including a hot breakfast offering on early morning flights and specially-produced snacks during the rest of the day.
Flying Club Gold card holders and Upper Class passengers connecting onto Upper Class long haul flights with Virgin will have access to airport lounges at their departure airport, plus access to limo transfer services.
The Scottish Passenger Agents’ Association (SPAA), which has been vocal in its support for Virgin Atlantic's submission - as the most effective approach to securing vital capacity, robust competition and high service standards on Anglo-Scottish routes - has expressed its satisfaction at the announcement.
SPAA President Kevin Thom commented: "This is excellent news for both business and leisure air travellers in Scotland, whether they are flying to London or onbound to destinations worldwide. It is also great news for Scotland's economy, and it will help expand the market - which will be positive for all airlines serving Scotland’s travellers."
For further information or to book please contact www.virginatlantic.com or call 0844 2092 770.
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