Virgin Blue Airlines Group
(ASX:VBA) has announced plans to form a joint venture with Delta Air Lines that will expand both carriers reach between the U.S. and Australia and the South Pacific.
Virgin says the two airlines are seeking regulatory approval for their joint venture, and in the meantime will move forward to implement codesharing and frequent flyer program reciprocity.
Delta’s executive vice president for network and revenue management, Glen Hauenstein says together Delta and Virgin Blue will be a stronger and more effective competitor by offering customers greater choice of destinations, frequencies and schedules.
Virgin CEO Brett Godfrey says the two airlines make a tremendously exciting fit.
Virgin Blue and Delta will today file antitrust immunity applications with the U.S. Department of Transportation and with the Australian Competition and Consumer Commission.
Virgin Blue’s 2008 net profit more than halved from its high in 2007 of $215.8 million.
