Air France-KLM that is currently is in search for permanent CEO (third one in two years) yesterday announced that it would take 31% stake in Virgin Atlantic and pay 220 million GBP to Virgin Group for the share.
Delta owns 49% of Virgin Atlantic which it purchased from Singapore Airlines back in 2012 (read more here).
Here’s the announcement from the airline:
PARIS, ATLANTA and LONDON, May 15, 2018 – Air France-KLM, Delta Air Lines and Virgin Atlantic Limited have today signed definitive agreements paving the way forward for their expanded trans-Atlantic joint venture:
- The Joint Venture Agreement signed between Air France-KLM, Delta and Virgin Atlantic sets out the governance as well as the commercial and operational terms of the expanded trans-Atlantic Joint Venture.
- Upon completion, Air France-KLM will acquire a 31 per cent stake in Virgin Atlantic currently held by Virgin Group for £220 million.
- Virgin Group will retain a 20 per cent stake and Chairmanship of Virgin Atlantic.
- Delta will retain its 49 per cent stake.
Air France-KLM, Delta and Virgin Atlantic will now coordinate efforts to secure the appropriate regulatory approvals.
The airlines’ expanded joint venture will become the preferred choice for customers travelling across the Atlantic offering the most comprehensive route network, convenient flight schedules, competitive fares and reciprocal frequent flyer benefits, including the ability to earn and redeem miles across all carriers. Customers will also benefit from the co-location of facilities at key hub airports to improve connectivity and access to each carrier’s airport lounges for premium passengers.
The signed agreements are all subject to regulatory approvals.
The information about this “expanded join-venture” are rather scant beyond the Air France-KLM’s 31% stake in Virgin Atlantic that needs to be approved by a regulator. I guess that we should know more in due course.