Wed, Jun 26, 2013
Airlines Receive Merger Clearance From The EU Commission And U.S. Department Of Justice
Delta Airlines has acquired a 49% stake in Virgin Atlantic, marking the next step towards a full joint venture between the two carriers. Virgin Atlantic will place its code on 91 Delta routes, including both trans-Atlantic and domestic U.S. routes. Delta will place its code on 17 Virgin Atlantic routes, including the recently launched Little Red domestic U.K. services connecting London to Manchester, Edinburgh and Aberdeen.
The two airlines announced their intention to enter into a joint venture agreement in December 2012. Last week unconditional merger clearance was granted by the European Commission and the U.S Department of Justice closed their review of the transaction. As of Monday, Delta has successfully completed its acquisition of a 49 per cent stake in Virgin Atlantic. The U.S Department of Transportation is currently reviewing the parties' application for antitrust immunity relating to the proposed joint venture of the parties' operations on nonstop routes between the US and the UK. This review is expected to be completed during third quarter of 2013, and the implementation of the Delta/Virgin Atlantic joint venture is anticipated to occur in the first quarter of 2014. Once implemented, this will deliver further significant additional consumer benefits and vibrant competition to the trans-Atlantic market.
"This is a strategic investment that enhances Delta's network with greatly improved access to London Heathrow, the leading marketplace on the trans-Atlantic," said Ed Bastian, Delta's president. "As we unite two leading global airline brands in an innovative partnership that focuses on delivering enhanced benefits and services for our customers, we also become a more formidable competitor across the Atlantic."
"Today is an important day for Virgin Atlantic and our customers in both the U.S. and U.K. As new shareholders in the airline, Delta is an important ally in the all-important trans-Atlantic market," said Craig Kreeger, Virgin Atlantic CEO. "We can stand firm together against the competition and can now offer more destinations, a smoother connecting airport experience and ultimately the best trans-Atlantic on board experience. Virgin Atlantic's award-winning customer experience is loved around the world and we look forward to sharing our unique Clubhouse and in-flight hospitality with many Delta passengers over the years."
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