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AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 12:15 pm
by factsonly
May 15, 2018 Press Release:

Air France-KLM, Delta Air Lines and Virgin Atlantic Sign Definitive Agreements to Strengthen Trans-Atlantic Partnership

PARIS, ATLANTA and LONDON, May 15, 2018 – Air France-KLM, Delta Air Lines and Virgin Atlantic Limited have today signed definitive agreements paving the way forward for their expanded trans-Atlantic joint venture:
The Joint Venture Agreement signed between Air France-KLM, Delta and Virgin Atlantic sets out the governance as well as the commercial and operational terms of the expanded trans-Atlantic Joint Venture.
Upon completion, Air France-KLM will acquire a 31 per cent stake in Virgin Atlantic currently held by Virgin Group for £220 million.
Virgin Group will retain a 20 per cent stake and Chairmanship of Virgin Atlantic.
Delta will retain its 49 per cent stake.
Air France-KLM, Delta and Virgin Atlantic will now coordinate efforts to secure the appropriate regulatory approvals.

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. 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.

The signed agreements are all subject to regulatory approvals.

https://www.virginatlantic.com/gb/en/me ... rship.html

The first operational changes are expected in W18 and Summer 2019.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 12:24 pm
by dtw2hyd
Really, did unions agree to this? If so, it is a great achievement of current DL management.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 1:01 pm
by EvanWSFO
tys777 wrote:
If I'm doing my math correct, this means DL is now majority shareholder of VS. Interesting..


Nope. AF/KL has 31%; Virgin Group has 20%, DL remains at 49%

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 1:02 pm
by tys777
If I'm doing my math correct, this means DL is now majority shareholder of VS. Interesting..

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 1:47 pm
by LHRFlyer
DL will be the single largest shareholder, when AF-KLM eventually acquires a 31% stake on completion.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 1:49 pm
by B757Forever
tys777 wrote:
If I'm doing my math correct, this means DL is now majority shareholder of VS. Interesting..


I'm not sure about majority but DL is most certainly the largest stockholder.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 2:08 pm
by readytotaxi
Can just hear the French union, "You've got £220m to spend on VA and nothing for us????, Non !"

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 2:22 pm
by Cunard
readytotaxi wrote:
Can just hear the French union, "You've got £220m to spend on VA and nothing for us????, Non !"


Come on now you should know it's VS not VA!

As you should be aware VA is Virgin Australia.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 2:24 pm
by klakzky123
B757Forever wrote:
tys777 wrote:
If I'm doing my math correct, this means DL is now majority shareholder of VS. Interesting..


I'm not sure about majority but DL is most certainly the largest stockholder.


DL is now the largest shareholder but EU rules require 51% of the company to be owned by EU shareholders (Virgin Group and AF/KL make up the 51%). The airline was already de-facto controlled by Delta. The AF/KL shares just cement control of the company in the hands of DL.

What will be interesting is how this will all work after Brexit. Ideally they'll just keep the European ownership rules in place because BA is in a similar situation but the lack of uncertainty has to be frustrating.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 2:26 pm
by jbs2886
B757Forever wrote:
tys777 wrote:
If I'm doing my math correct, this means DL is now majority shareholder of VS. Interesting..


I'm not sure about majority but DL is most certainly the largest stockholder.


I suspect he is referring to DL's indirect interest in Virgin through AF/KLM, of which they own around 10%. When this was first announced, that thread had pages discussing whether DL's indirect interest means we can say DL is the majority shareholder.

Hopefully we don't have the same debate again since it is mere semantics.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 2:27 pm
by jbs2886
readytotaxi wrote:
Can just hear the French union, "You've got £220m to spend on VA and nothing for us????, Non !"


AF/KLM funds were from purchases by DL of AF/KLM shares last year.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 2:48 pm
by tys777
jbs2886 wrote:
B757Forever wrote:
tys777 wrote:
If I'm doing my math correct, this means DL is now majority shareholder of VS. Interesting..


I'm not sure about majority but DL is most certainly the largest stockholder.


I suspect he is referring to DL's indirect interest in Virgin through AF/KLM, of which they own around 10%. When this was first announced, that thread had pages discussing whether DL's indirect interest means we can say DL is the majority shareholder.

Hopefully we don't have the same debate again since it is mere semantics.


Yes, really not looking for that debate again.

With %49 direct and some indirect, there is no doubt DL weilds some major influence.

It'll be interesting how DL/AF/KL use VS in the transatlantic capacity planning.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 3:04 pm
by usdcaguy
I’d be curious to know if VS would ever connect London with the continent using their own metal to solidify the partnership. When you think of failed ventures like Virgin Express and Little Red, it’s hard to see a future there, but it would definitely help fill some flights to LHR. If DL/VS have already used their slots to fly to the US, however, that’s a moot point.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 3:26 pm
by klm617
Let's see what goodies this brings. Perhaps maybe one of the reasons Delta pulled out of MAN

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 3:28 pm
by MIflyer12
dtw2hyd wrote:
Really, did unions agree to this? If so, it is a great achievement of current DL management.


Oh, the press release doesn't say that! They're just announcing that they have a framework for governance and operational and financial management, and will begin seeking (a bunch of) regulatory approvals.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 4:42 pm
by readytotaxi
Cunard wrote:
readytotaxi wrote:
Can just hear the French union, "You've got £220m to spend on VA and nothing for us????, Non !"


Come on now you should know it's VS not VA!

As you should be aware VA is Virgin Australia.

Hands up, guilty of type po,pardon moi. I was thinking Virgin Atlantic and typed VA.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 5:38 pm
by tlecam
THis is interesting - could be un-related but there are rumors of BOS-LHR going double daily on VS; probably replacing the DL 767. I wonder if we'll see a broader rationalization of which airline (plane) flies which routes TATL.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 5:47 pm
by airzona11
I think it is only a matter of time until the LCCs/ULCCs start to forge similar arrangements on either side of the pond.

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 7:05 pm
by questions
What is the ranking of top five TATL airlines (incl JV’s), ie, where does this out DL/AF/KL/VS in the pecking order?

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 7:12 pm
by questions
Obviously VS is being used for LHR slots and aircraft. Since corporate contracts are really important, is VS at a disadvantage in the London market because the airline is so limited to mostly TATL flights? Obviously the experts have done a great deal of number crunching as to the highest potential for profits, but it seems like Asia is definitely a gaping hole. Are SkyTeam partners able to fill the gap to Asia ex LHR?

Re: AF-KLM, Delta, Virgin Atlantic sign Trans-Atlantic Partnership

Posted: Wed May 16, 2018 7:23 pm
by Bricktop
klakzky123 wrote:
What will be interesting is how this will all work after Brexit. Ideally they'll just keep the European ownership rules in place because BA is in a similar situation but the lack of uncertainty has to be frustrating.

There's no lack of uncertainty. ;-)