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Topic: Virgin, Delta, Air France-KLM joint venture gets US approval

  1. #1
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    Default Virgin, Delta, Air France-KLM joint venture gets US approval

    News from this morning's Travel Mole. Not sure if this is good news or not, we shall wait and see.

    Virgin, Delta, Air France-KLM joint venture gets US approval

    The mega joint venture of Air France- KLM, Virgin Atlantic and Delta Air Lines has received official antitrust immunity in the US.

    The US Department of Transportation has given the green light for the extended JV, which replaces two separate agreements between Delta and Air France-KLM and Delta and Virgin Atlantic.

    With immunity the carriers can coordinate their pricing, scheduling and share revenue on flights operated on US-Europe routes.

    The US DOT had already adopted safeguards to 'protect competition, promote public benefits such as additional flights, and increased seat availability'.

    "This is the final regulatory step for the airlines to begin to work together to offer customers the best streamlined travel experience across the Atlantic," Delta said.

    JetBlue, which is planning to start its own transatlantic services, argued that the multi-carrier tie-up didn't show enough customer benefits to merit antitrust immunity.
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    Yes, this is a curiosity, as it seems a hard one to get past the regulatory authorities in terms of creating a mini-monopoly, but there it is. Might be good news for Virgin customers with frequent flier miles to use, but you do wonder if this is also a way to keep prices high.

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    Interesting to see JetBlue are planning trans-Atlantic flights, hopefully they will be able to do it at a sustainable low price.
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    That's pretty much the JetBlue model. And they are usually a very reliable operator. I think they're most likely to operate New York routes to start with, though, but you never know if they'll look for routes like MCO.

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    Had heard this was on the cards we quite often fly with Delta when booking through Virgin holidays and canít complain at the service. If you search for flights on Virgin Atlantic or Delta quite often the route offered is with KLM via Amsterdam I hope that is not a trend of this agreement I avoid indirect flights unless unavoidable
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