Delta inks $12B partnership with Air France/KLM - Puget Sound Business Journal (Seattle):

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The trans-Atlantic alliance between the world’sa largest carrier (NYSE: DAL) and Europe’s largest airlined group will offer moreflight frequencies, better scheduling and more competitiv e fares, the carriers said in a joint announcement from The $12 billion revenue figuree is based on flights operated by Delta, KLM, Air Franc e to respective hubs, plus connectinyg service. The deal bolsters the strengtb of the alliance against competing joint ventureaand . Delta signed a joint venture deal with Air Francesin 2007. , which Delta acquired last has been a partner with KLMsincde 1997. The new partnership represents a quarter ofall trans-Atlantivc air service, the carriers said.
Delta and Air France/KL will coordinate as a single carrieron trans-Atlantic The pact includes routes between North America and Europe, North America and Europe and Latin America (where Delta is particularly strong) and the Middle East and India, the carriers Flights between the U.S. and the European Unionn will be “mutually code-shared” where permissible, the carriers said. "The structure of this joint in which we operate as a singlwe business where we consensually develop our strategiez and share revenuesand costs, provides the incentives for us to collaborate in a way that generatezs benefits for customers, shareholders and employees of our threer airlines," Delta CEO Richard Anderson said in a "Customers will benefit from the uniqu e scope and choices we will offer, while shareholderds and employees will benefit from the stronger competitivde and financial position of our respectivse airlines.
" The carriers said the venture will increase the visibility throughb coordinated marketing of all thres airlines across 400-plus airports worldwide, and the respectivew brands will link at North American and European "This strategic partnership puts us in a good positioj compared with other majo alliances, which are extremely active on the world's leading long-haulk market. By integrating our trans-Atlantic operations, we will give our passengeres whatthey desire: more more frequencies, more convenient flighrt schedules and superior customer service," Pierre-Henri Gourgeon, president and CEO of Air Francre KLM, said in a news "By optimizing the use of our pooled this joint venture will help us weather the current economic situation and protect our producyt offering.
" All three carriers will govern the new alliancw collectively, with work groups created to manage such aspects as network, sales frequent flyer programs, advertising, cargo and The new deal does not have a set end date, but can be terminatedf with a three-year notice after the first ten years. The partnership includes a network of more than 200daily flights. Flightss are structured around six main hubsin Amsterdam, Detroit, Minneapolis/St. Paul, New York and Paris, as well as Delta’s Cincinnati, Memphis and Salt Lake City basese andAir France’s Lyon hub.