Air France-KLM Group Buys 31 Percent Stake in Virgin Atlantic

Air France-KLM Group, Delta Air Lines and Virgin Atlantic have announced their intention to expand their strategic partnership and offer customers access to the most comprehensive transatlantic route network via an extensive joint venture.

Under the deal, Air France-KLM will acquire a 31 percent stake in Virgin Atlantic from the holding currently held by Virgin Group. The stake will be priced at £220 million.

Virgin Group will retain a 20 percent stake and the chairmanship of the carrier, while Delta will retain its 49 percent stake in Virgin Atlantic.

The long-term joint venture would offer convenient flight schedules with competitive fares and reciprocal frequent flyer benefits, including the ability to earn and redeem miles across all carriers.

The benefits would also include co-location of facilities at key airport hubs to improve connectivity times for customers, as well as access to each carriers’ airport lounges for premium customers.

The enhanced joint venture, including Alitalia, would become the airline partnership of choice for customers, offering more than 300 daily non-stop transatlantic flights and increasing competitive routings with offerings across key business markets including Amsterdam, Atlanta, Boston, Cincinnati, Detroit, Los Angeles, London Heathrow, Minneapolis-St Paul, New York-JFK, Paris-CDG, Salt Lake City and Seattle.

The enhanced joint venture would establish a combined partnership with a duration of at least 15 years.

All transactions are subject to execution of definitive agreements and receipt of final shareholder, board, and regulatory approvals.

Virgin Atlantic would retain its independence as a UK airline with a UK operating certificate, and will continue to fly under the Virgin brand.