Wednesday, July 13, 2011

Air France partnered with Delta on Trans-Atlantic flights

Air France and Delta airlines partnered to share revenues and costs on their trans-Atlantic routes. The agreement will expand the two airlines’ existing immunized partnership that has delivered new routes and choices to customers on both sides of the Atlantic since its inception in the late 1990s.

The first phase begin April 2008 and 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.

many transatlantic flights operated by Air France and Delta between Europe and the US will be sold on a code-share basis.

First phase benefits of the joint venture partnership will include:

The entry of the Joint Venture into the world’s most competitive business market as Delta begins serving London Heathrow using three of Air France’s slots at that airport with:
a London-Heathrow/Los Angeles flight operated by Air France
two London-Heathrow/New York JFK flights operated by Delta
a London-Heathrow/Atlanta flight operated by Delta
The addition of three new trans-Atlantic routes not currently served on a non-stop basis by either airline:
a Paris-Orly/New York JFK flight operated by Delta
a Lyon/New York JFK flight operated by Delta, and
a Paris-CDG/Salt Lake City flight operated by Delta.
Increased growth opportunities resulting from the combined efforts of Air France’s and Delta’s respective sales teams with more access to more flights
Increased travel options for passengers, including more flights, better schedules, more discounted seats and more frequent flyer upgrade and mileage redemption opportunities than ever before.
“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.”

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.

On June 28, Air France, KLM, Delta, Northwest, Alitalia and CSA Czech Airlines filed for expanded antitrust immunity with the U.S. Department of Transportation. If granted, such immunity would enable Air France, KLM, Delta and Northwest to set up a joint venture agreement among the four of them and ultimately integrate their trans-Atlantic operations.

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