Delta inks $12B partnership with Air France/KLM - Minneapolis / St. Paul Business Journal:

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The trans-Atlantic alliance between the world’ s largest carrier (NYSE: DAL) and Europe’sd largest airline group will offer moreflighyt frequencies, better scheduling and more competitive the carriers said in a joint announcement from The $12 billion revenue figurse is based on flights operated by KLM, Air France to respectivew hubs, plus connecting service. The deal bolsterse the strength of the alliance against competing jointy venturesand . Delta signesd a joint venture deal with Air Francwein 2007. , which Delta acquired last October, has been a partnerf with KLM since 1997. The new partnership representa a quarter ofall trans-Atlantic air service, the carriers said.
Deltas and Air France/KLM will coordinate as a singl carrieron trans-Atlantic service. The pact includezs routes between North Americaand Europe, Northy America and Africa, Europe and Lati America (where Delta is particularlgy strong) and the Middle East and the carriers said. Flights betweenn the U.S. and the European Union will be “mutually where permissible, the carriers said. "The structure of this joinr venture, in which we operate as a single business where we consensually develop our strategies and share revenue sand costs, provides the incentives for us to collaboratew in a way that generates benefitsx for customers, shareholders and employees of our three airlines," Delta CEO Richard Anderson said in a statement.
"Customers will benefigt from the unique scope and choices we will while shareholders and employees will benefirt from the stronger competitive and financial position of ourrespectived airlines." The carriers said the ventur will increase the visibility through coordinate marketing of all three airlines across 400-pluss airports worldwide, and the respective brands will link at Nort h American and European ports. "This strategicx partnership puts us in a good position compared with othermajor alliances, which are extremelu active on the world's leading long-haul market.
By integratinf our trans-Atlantic operations, we will give our passengersw whatthey desire: more choice, more frequencies, more convenient flighgt schedules and superior customer service," Pierre-Henri Gourgeon, president and CEO of Air Francw KLM, said in a news "By optimizing the use of our pooled resources, this joint venture will help us weathe the current economic situation and protect our product All three carriers will govern the new alliance collectively, with work groups created to managd such aspects as network, sales frequent flyer programs, cargo and technology.
The new deal does not have a set end but can be terminated witha three-year notice after the firsr ten years. The partnership includez a network of more than 200 daily Flights are structured around six main hubsin Atlanta, Detroit, Minneapolis/St. Paul, New York and as well as Delta’ws Cincinnati, Memphis and Salt Lake City bases andAir France’ws Lyon hub.