Delta
and Virgin plan to set up a revenue-sharing deal on flights between
Britain and the US, which would involve a code-share agreement,
allowing both to sell flights on the other airline and share revenues
from ticket
sales.
The
partnership would be similar to that operated by British
Airways and American
Airlines since 2010 on all transatlantic
flights on routes between the US, Canada and Mexico and many European
routes.
Airlines
like Delta have long hoped to break into London's
capacity-constrained Heathrow airport, a lucrative hub for corporate
passengers where landing slots are generally hard to acquire. Virgin
Atlantic is the second-largest carrier at Heathrow after BA.
A
combination with Delta, the second-largest US
airline by revenue after United Continental,
would be a shot in the arm for Virgin. The British carrier has been
battered by rising fuel prices and the euro zone crisis, and posted a
loss of around GBP£80 million in its last full year.
Singapore
and Delta are still in talks over the sale of the stake, which the
Asian carrier bought for GBP£600 million in 1999, but now wants to
sell to refocus on its key markets.
Weekend
reports in the British press said Air France-KLM, which also has a
partnership with Delta on some transatlantic routes, was in talks to
buy part of Branson's stake - a deal which would effectively give
Delta and Air France-KLM control over Virgin Atlantic.
Source: Reuters
Source: Reuters
