A PYMNTS Company

EU: Four airlines plan massive joint venture

 |  July 27, 2017

On Thursday, Delta Air Lines Inc. and China Eastern Airlines Corp. announced that they will each buy 10% stakes of Air France in steps to deepen an alliance.

Simultaneously, Air France will purchase a stake in Virgin Atlantic Airways Ltd.

Delta and China Eastern will acquire their stakes for US$876 million and Air France will pay US$287 million for its stake in Virgin Atlantic.

Though government-imposed ownership caps limit outright mergers for most airlines, these tie-ups should allow all four companies to coordinate timetables and fares for some routes and should also allow them to combine frequent flyer programs.

The tie-ups are expected to finish next year, allowing the arrangements to be implemented no later than 2019.

Full Content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.