Delta, Virgin Blue Plan New Joint Venture

Delta Air Lines and the Virgin Blue Airlines Group have announced that they plan to seek regulatory approval to form a joint venture that will expand both carriers’ reach between the U.S. and Australia and the South Pacific.

The alliance will allow Delta and the Virgin Blue Airlines Group to compete more effectively in those markets by collaborating on route and product planning, code sharing on their respective networks and extending frequent flyer program benefits and lounge access to customers of both airlines.

In advance of their joint venture, the carriers are moving forward to implement code sharing, frequent flyer program reciprocity and lounge exchange privileges. Delta and the Virgin Blue Airlines Group will file antitrust immunity applications with the U.S. Department of Transportation and with the Australian Competition and Consumer Commission.

Delta began daily nonstop service between Los Angeles and Sydney on July 1, 2009, with a Boeing 777-200LR equipped with 180-degree, full-flat beds in its BusinessElite class. V Australia, a Virgin Blue Group airline, operates a daily nonstop Boeing 777 service between Los Angeles and Sydney, and service three times weekly between Los Angeles and Brisbane.

A new, three times weekly service between Los Angeles and Melbourne is planned for September 2009. The three-class airline offers 33 Business Class fully lie-flat beds, 40 Premium Economy club seats and 288 economy seats plus two in-flight bars.