AF-KLM, Delta Sign Transatlantic Deal
By Jens Flottau
Air France-KLM and Delta Air Lines signed a joint venture agreement today covering their entire North Atlantic operations.
The deal includes a total of around 200 daily long-haul flights or a capacity of 50,000 seats daily, the airlines stated at a press conference in Paris. This represents about 25% of the total transatlantic capacity.
The agreement has been expected for some time and is part of a broader move of the three international airline alliances to deepen relationships in the North Atlantic market. Similar moves are being prepared by American Airlines and British Airways (AA/BA) as well as Lufthansa, United, Air Canada and Continental (Star Alliance), but all of them are still subject to regulatory approval.
The European Commission has already stated that it will take a close look at the effect on competition these joint ventures might have in addition to the already tight alliance relationships.
As part of the agreement, Air France, KLM and Delta will share revenues and costs for the services included. The group estimates that revenues will be around $12 billion annually. In addition to all transatlantic routes, the contract also includes services from Amsterdam to India and from the U.S. to Tahiti (operated by Air France).
The contract can be cancelled with three years’ notice, but only after an initial 10-year term.
Photo: Air France
