31% of Virgin Atlantic is purchased by Air France-KLM, while Delta and China Eastern each purchase 10% of AF-KLL
Air France-KLM reinforces its political alliances
Air France-KLM today announces a further significant move in strengthening its strategic partnerships with, firstly, the establishment of a single global joint venture between Air France-KLM, Delta Air Lines and Virgin Atlantic and, secondly, the strengthening of its partnership with China Eastern Airlines. These two business alliances will be strengthened through capital links:
- For £ 220 million, Air France-KLM will buy Virgin Group's 31 percent stake in Virgin Atlantic.
- Within the context of reserved capital increases totaling EUR 751 million, Delta and China Eastern will each acquire a 10 percent interest in Air France-KLM.
Air France-KLM will be placed as the European pillar of the leading global airline network through the financial, economic and equity investments of these partnerships.
All of these agreements would enable Air France-KLM to deliver an expanded network to its customers and to capitalize on the pooling of large distribution networks. These collaborations, as an integral part of the Trust Together strategic project, will help the Group's sustainable growth and allow Air France-KLM to deliver an unrivalled proposal to its customers.
At the heart of the most global relationship in the airline industry
The fusion of existing joint ventures between Air France-KLM, Delta and Alitalia, on the one hand, and Delta and Virgin Atlantic, on the other, into a single joint venture, marks the extension and strengthening of one of the most advanced airline partnership models. The group* will be enabled by this joint venture to:
- Give an unrivalled proposal to clients on transatlantic routes.
- Drive the partners' capacity creation.
- Establish an associate partner status that allows other players to be included.
- For a 15-year span, expand a relationship.
- Thanks to a new code share to/from London, sales coordination, the expanded collaboration and cost savings, produce big annual synergies.
Thus, with the creation of this joint venture, Air France-KLM will consolidate its leading position in the North American and European markets with the largest airline network of around 12 powerful hubs on both sides of the Atlantic: Amsterdam, Atlanta, Boston, Cincinnati, Detroit, Los Angeles, London Heathrow, Minneapolis-St Paul, New York-JFK, Paris-CDG, https://air-miles-guide.com/miles/salt-lake-city/seattle/ Salt Lake City and Seattle.
A improved alliance with Eastern China
At the same time, Air France-KLM and China Eastern will step up their commercial cooperation and enhance their partnership within the current joint venture, with a view to:
- Secure and enhance the position of Air France-KLM in the Chinese market thanks to a long-term alliance.
- Offer Air France-KLM a European leadership role with respect to Shanghai, China's main business market.
- Improve the resources available to our clients.
- Enable enhanced cooperation with respect to network, pricing and organizational synergies.
These capital increases would allow the financial structure of Air France-KLM to strengthen, accelerate the reduction of its net debt and fund the acquisition of a stake in Virgin Atlantic.
*Subject to the final agreements being signed and the approval of the competent regulatory authorities.
The proposed transaction calendar:
- 4 September 2017: Extraordinary meeting of shareholders to approve the increase in capital and the selection of new members of the Board of Directors (to take place on closure of the reserved capital increases)
- After the regulatory approvals are obtained: realization of rises in reserved capital.
Air-France-KLM July 27th, 2017
_______________________________________________________________
To Strengthen Transatlantic Partnerships, Air France-KLM, Delta Air Lines and Virgin Atlantic
The Air France-KLM Group, Delta Air Lines and Virgin Atlantic Limited today announced their intention to extend their strategic alliance and, through an extensive joint venture, provide customers with access to the most extensive transatlantic route network. With affordable fares and mutual frequent flyer perks, including the opportunity to receive and redeem miles across all airlines, the long-term joint venture will provide flexible flight schedules. The advantages will also include the co-location of facilities at key airport hubs to boost customer connection times, as well as access to the airport lounges of each carrier for premium customers.
The improved joint venture, including Alitalia, would become the preferred airline partnership for customers, offering more than 300 transatlantic non-stop flights per day and increasing competitive routings with offerings across key business markets such as Amsterdam, Atlanta, Boston, Cincinnati, Detroit, Los Angeles, London Heathrow, Minneapolis-St Paul, New York-JFK, Paris-CDG, Salt Lake City and Salt Lake City.
A joint partnership with a term of at least 15 years will be formed by the enhanced joint venture. In order to promote this cooperation's success:
- Air France-KLM will buy a 31 percent interest in Virgin Atlantic, which Virgin Group currently owns for £ 220 million.
- A 20 percent stake and chairmanship will be held by Virgin Group
- Delta will retain its Virgin Atlantic 49 percent stake
All transactions are subject to the execution and receipt of final shareholder, board and regulatory approvals of definitive agreements. As a UK airline with a UK operating license, Virgin Atlantic will maintain its independence and continue to operate under the Virgin name.
Air France KLM CEO, Jean-Marc Janaillac, said:
We are pleased to deepen our transatlantic relationship with our partners Delta and Virgin Atlantic, offering our customers an even greater option between Europe, the UK and the United States across twelve hubs on both sides of the Atlantic.
Virgin Group Founder Sir Richard Branson said:
Over the past 33 years, Virgin Atlantic has made a great difference to the travel experience of people and changed the airline industry for the better. This is a perfect opportunity to grow our network and build a stronger customer advocate, as well as being highly beneficial to our people and the Virgin Atlantic brand that our customers dearly love.
Virgin Atlantic CEO, Craig Kreeger, said:
By providing clients with the range they deserve and a travel experience they enjoy, we created the Virgin Atlantic brand. We couldn't be more pleased that the next step of our development will be at the center of the greatest relationship between Europe and North America for customers. We will draw on this vision of our teams to create irresistible experiences for customers traveling on our network, together with our friends at Air France-KLM and Delta.
Comments from Ed Bastian, Delta's CEO
Together with our great partners at Air France-KLM and Virgin Atlantic, we will build a direction to improve competitiveness across the Atlantic that will create additional benefits for consumers, staff and shareholders by working even closer together.
Virgin Atlantic-Posted on Thursday, July 27, 2017 at 17:00
ATLANTA, PARIS and LONDON
__________________________________________________________________________________
Delta is expanding its long-standing alliance with Air France-KLM through a 10% equity investment.
The combined joint venture will be launched by Delta, Air France-KLM, Virgin Atlantic,
With an investment of EUR 375 million, Delta Air Lines is expanding its longstanding and industry-leading relationship with Air France-KLM Group to gain 10% equity in the joint venture partner and a seat on the Board of Directors of Air France-KLM Group. In addition, Delta, Air France-KLM and Virgin Atlantic will launch a combined long-term joint venture to give customers the most extensive trans-Atlantic route network, backed by a 31 percent investment by Air France-KLM in Virgin Atlantic.
"A dynamic global landscape means that deepening ties with our global partners is more important than ever for Delta to provide opportunities for mutual growth," said Ed Bastian, CEO of Delta. "The trans-Atlantic partnership of choice for customers will be created by combining the strengths of Delta, Air France-KLM and Virgin Atlantic into a common joint venture."
Nearly 300 regular nonstop trans-Atlantic flights and flexible flight schedules will be provided by the enlarged joint venture, including Alitalia. Customers will also benefit from the ability of all carriers to receive and redeem miles, co-location of facilities at key airports to maximize connectivity, and access to premium customers' airport lounges for each carrier.
In recent years, the investment aligns with others Delta has made as it extends its international presence through alliances in regions around the world with key airlines. The demand generated by the combined customer base and hub airports of Delta and Air France-KLM has allowed new trans-Atlantic routes to offer Delta customers an expanded choice of destinations and flight frequencies.
"Delta's global partnerships have fueled significant international growth over the past decade," said Steve Sear, President of Global Sales, International & EVP. "Our ability to align network, sales and other commercial and operational initiatives will bring even greater benefits to our customers and employees as we further develop these partnerships."
All transactions are subject to the execution and receipt of final shareholder, board and regulatory approvals of definitive agreements.
The existing joint venture of the Atlanta-based airline with Air France-KLM dates back to 2009, with Alitalia being added in 2010. Delta launched a joint venture with Virgin Australia in 2012, followed in 2013 by both a 49% stake in Virgin Atlantic and a joint venture with it. In 2015, Delta entered into a strengthened marketing agreement with its SkyTeam affiliate, China Eastern, and gained a 3.5 percent stake in it. Delta initiated its joint cooperation agreement with Aeromexico in 2017 and raised its carrier's equity stake to 49 percent. Also in 2017, Delta announced a joint venture with Korean Air Lines. Delta also has a 9.5 percent equity stake in GOL, an airline based in Brazil.
• Posted on July 27, 2017 12:00 pm Delta Air Lines
Air France-KLM today announces a further significant move in strengthening its strategic partnerships with, firstly, the establishment of a single global joint venture between Air France-KLM, Delta Air Lines and Virgin Atlantic and, secondly, the strengthening of its partnership with China Eastern Airlines. These two business alliances will be strengthened through capital links:
- For £ 220 million, Air France-KLM will buy Virgin Group's 31 percent stake in Virgin Atlantic.
- Within the context of reserved capital increases totaling EUR 751 million, Delta and China Eastern will each acquire a 10 percent interest in Air France-KLM.
Air France-KLM will be placed as the European pillar of the leading global airline network through the financial, economic and equity investments of these partnerships.
All of these agreements would enable Air France-KLM to deliver an expanded network to its customers and to capitalize on the pooling of large distribution networks. These collaborations, as an integral part of the Trust Together strategic project, will help the Group's sustainable growth and allow Air France-KLM to deliver an unrivalled proposal to its customers.
At the heart of the most global relationship in the airline industry
The fusion of existing joint ventures between Air France-KLM, Delta and Alitalia, on the one hand, and Delta and Virgin Atlantic, on the other, into a single joint venture, marks the extension and strengthening of one of the most advanced airline partnership models. The group* will be enabled by this joint venture to:
- Give an unrivalled proposal to clients on transatlantic routes.
- Drive the partners' capacity creation.
- Establish an associate partner status that allows other players to be included.
- For a 15-year span, expand a relationship.
- Thanks to a new code share to/from London, sales coordination, the expanded collaboration and cost savings, produce big annual synergies.
Thus, with the creation of this joint venture, Air France-KLM will consolidate its leading position in the North American and European markets with the largest airline network of around 12 powerful hubs on both sides of the Atlantic: Amsterdam, Atlanta, Boston, Cincinnati, Detroit, Los Angeles, London Heathrow, Minneapolis-St Paul, New York-JFK, Paris-CDG, https://air-miles-guide.com/miles/salt-lake-city/seattle/ Salt Lake City and Seattle.
A improved alliance with Eastern China
At the same time, Air France-KLM and China Eastern will step up their commercial cooperation and enhance their partnership within the current joint venture, with a view to:
- Secure and enhance the position of Air France-KLM in the Chinese market thanks to a long-term alliance.
- Offer Air France-KLM a European leadership role with respect to Shanghai, China's main business market.
- Improve the resources available to our clients.
- Enable enhanced cooperation with respect to network, pricing and organizational synergies.
These capital increases would allow the financial structure of Air France-KLM to strengthen, accelerate the reduction of its net debt and fund the acquisition of a stake in Virgin Atlantic.
*Subject to the final agreements being signed and the approval of the competent regulatory authorities.
The proposed transaction calendar:
- 4 September 2017: Extraordinary meeting of shareholders to approve the increase in capital and the selection of new members of the Board of Directors (to take place on closure of the reserved capital increases)
- After the regulatory approvals are obtained: realization of rises in reserved capital.
Air-France-KLM July 27th, 2017
_______________________________________________________________
To Strengthen Transatlantic Partnerships, Air France-KLM, Delta Air Lines and Virgin Atlantic
The Air France-KLM Group, Delta Air Lines and Virgin Atlantic Limited today announced their intention to extend their strategic alliance and, through an extensive joint venture, provide customers with access to the most extensive transatlantic route network. With affordable fares and mutual frequent flyer perks, including the opportunity to receive and redeem miles across all airlines, the long-term joint venture will provide flexible flight schedules. The advantages will also include the co-location of facilities at key airport hubs to boost customer connection times, as well as access to the airport lounges of each carrier for premium customers.
The improved joint venture, including Alitalia, would become the preferred airline partnership for customers, offering more than 300 transatlantic non-stop flights per day and increasing competitive routings with offerings across key business markets such as Amsterdam, Atlanta, Boston, Cincinnati, Detroit, Los Angeles, London Heathrow, Minneapolis-St Paul, New York-JFK, Paris-CDG, Salt Lake City and Salt Lake City.
A joint partnership with a term of at least 15 years will be formed by the enhanced joint venture. In order to promote this cooperation's success:
- Air France-KLM will buy a 31 percent interest in Virgin Atlantic, which Virgin Group currently owns for £ 220 million.
- A 20 percent stake and chairmanship will be held by Virgin Group
- Delta will retain its Virgin Atlantic 49 percent stake
All transactions are subject to the execution and receipt of final shareholder, board and regulatory approvals of definitive agreements. As a UK airline with a UK operating license, Virgin Atlantic will maintain its independence and continue to operate under the Virgin name.
Air France KLM CEO, Jean-Marc Janaillac, said:
We are pleased to deepen our transatlantic relationship with our partners Delta and Virgin Atlantic, offering our customers an even greater option between Europe, the UK and the United States across twelve hubs on both sides of the Atlantic.
Virgin Group Founder Sir Richard Branson said:
Over the past 33 years, Virgin Atlantic has made a great difference to the travel experience of people and changed the airline industry for the better. This is a perfect opportunity to grow our network and build a stronger customer advocate, as well as being highly beneficial to our people and the Virgin Atlantic brand that our customers dearly love.
Virgin Atlantic CEO, Craig Kreeger, said:
By providing clients with the range they deserve and a travel experience they enjoy, we created the Virgin Atlantic brand. We couldn't be more pleased that the next step of our development will be at the center of the greatest relationship between Europe and North America for customers. We will draw on this vision of our teams to create irresistible experiences for customers traveling on our network, together with our friends at Air France-KLM and Delta.
Comments from Ed Bastian, Delta's CEO
Together with our great partners at Air France-KLM and Virgin Atlantic, we will build a direction to improve competitiveness across the Atlantic that will create additional benefits for consumers, staff and shareholders by working even closer together.
Virgin Atlantic-Posted on Thursday, July 27, 2017 at 17:00
ATLANTA, PARIS and LONDON
__________________________________________________________________________________
Delta is expanding its long-standing alliance with Air France-KLM through a 10% equity investment.
The combined joint venture will be launched by Delta, Air France-KLM, Virgin Atlantic,
With an investment of EUR 375 million, Delta Air Lines is expanding its longstanding and industry-leading relationship with Air France-KLM Group to gain 10% equity in the joint venture partner and a seat on the Board of Directors of Air France-KLM Group. In addition, Delta, Air France-KLM and Virgin Atlantic will launch a combined long-term joint venture to give customers the most extensive trans-Atlantic route network, backed by a 31 percent investment by Air France-KLM in Virgin Atlantic.
"A dynamic global landscape means that deepening ties with our global partners is more important than ever for Delta to provide opportunities for mutual growth," said Ed Bastian, CEO of Delta. "The trans-Atlantic partnership of choice for customers will be created by combining the strengths of Delta, Air France-KLM and Virgin Atlantic into a common joint venture."
Nearly 300 regular nonstop trans-Atlantic flights and flexible flight schedules will be provided by the enlarged joint venture, including Alitalia. Customers will also benefit from the ability of all carriers to receive and redeem miles, co-location of facilities at key airports to maximize connectivity, and access to premium customers' airport lounges for each carrier.
In recent years, the investment aligns with others Delta has made as it extends its international presence through alliances in regions around the world with key airlines. The demand generated by the combined customer base and hub airports of Delta and Air France-KLM has allowed new trans-Atlantic routes to offer Delta customers an expanded choice of destinations and flight frequencies.
"Delta's global partnerships have fueled significant international growth over the past decade," said Steve Sear, President of Global Sales, International & EVP. "Our ability to align network, sales and other commercial and operational initiatives will bring even greater benefits to our customers and employees as we further develop these partnerships."
All transactions are subject to the execution and receipt of final shareholder, board and regulatory approvals of definitive agreements.
The existing joint venture of the Atlanta-based airline with Air France-KLM dates back to 2009, with Alitalia being added in 2010. Delta launched a joint venture with Virgin Australia in 2012, followed in 2013 by both a 49% stake in Virgin Atlantic and a joint venture with it. In 2015, Delta entered into a strengthened marketing agreement with its SkyTeam affiliate, China Eastern, and gained a 3.5 percent stake in it. Delta initiated its joint cooperation agreement with Aeromexico in 2017 and raised its carrier's equity stake to 49 percent. Also in 2017, Delta announced a joint venture with Korean Air Lines. Delta also has a 9.5 percent equity stake in GOL, an airline based in Brazil.
• Posted on July 27, 2017 12:00 pm Delta Air Lines
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