Published: Sun, July 30, 2017
Finance | By Laverne Griffith

Air France-KLM Buying Stake in Virgin Atlantic in Major Airline Shake-up

Air France-KLM Buying Stake in Virgin Atlantic in Major Airline Shake-up

Air France-KLM, Delta Air Lines, Virgin Atlantic and China Eastern Airlines have announced new alliances that will be strengthened by equity investments.

Back in 2016, Alaska Air Group acquired Virgin America in a deal worth approximately US$4bn (€3.5bn). Branson will retain 20 percent, and Delta will retain its 49 percent stake.

Passengers using the carriers, they said, would earn flyers' benefits across the network with Virgin retaining its brand and remaining a "UK airline with a United Kingdom operating certificate".

The joint venture with Delta and Air France/KLM also includes Alitalia, which is now taking bids in bankruptcy.

The announcement will be seen as a direct challenge to the expanded owner of British Airways, IAG, which also has the Iberia and Aer Lingus operations in its stable and dominates slots at Heathrow.

Air France has taken a big piece of Britain's second-biggest long-haul airline, Virgin Atlantic.

Delta will purchase 10% of its joint venture partner Air France-KLM, and Air France-KLM will purchase 31% of Virgin Atlantic as part of a plan to form a broader transatlantic joint venture between the carriers.

Take US, China help in Kashmir, says senior Abdullah
The National conference chief said, "You have to catch the bull by the horns, sometimes you have do it". So I think we understand that even after war we have to talk.

Who designed the Karnataka flag first? Five facts you need to know
Defending the move, Karnataka chief minister K Siddaramaiah asked if there is any provision in the Constitution that prohibits it. Home ministry officials explained Karnataka already had a flag representing only the "people and not the government".

Dozens injured in East Jerusalem clashes
The security measures have also sparked anger in Jordan, which is the official custodian of the Muslim holy sites in Jerusalem . A second person, who was reportedly shot in the A-Tur area of East Jerusalem , died of his injuries at Makassed Hospital.

Airlines have been moving away from traditional alliances that gave fliers the ability to book a single ticket across multiple airlines, earn frequent flier miles and gain access to shared lounges around the globe.

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

"I'm delighted to say that we've agreed with Air France-KLM and Delta our collective intention to form a four-way strategic joint venture, which will be extremely beneficial to our airline, our customers and the brand we all love so dearly".

It's odd to think but Virgin Atlantic has now been flying for half my lifetime. Plus deals for Delta and China Eastern to enter its share capital.

The state-owned company will pay about 375 million euros ($438.5 million) for its share in the French-Dutch airline, it said in a filing to the Hong Kong stock exchange.

The pair will each buy a 10% share in Air France-KLM, in what will be China Eastern's first investment in a Western airline.

Like this: