Airlines Joint Venture
Airlines Joint Venture

New JV Between Air France-KLM, Delta and Virgin Atlantic

The long-awaited transatlantic joint venture between Air FranceKLM, Delta and Virgin Atlantic is now officially live. As explained by Virgin Atlantic, this partnership will “provide customers with more convenient flight schedules” and “smoother and more consistent travel experience”. Most importantly, frequent flyers from these airlines will enjoy status benefits and reciprocal mileage earning and redemption starting from 13th February 2020.

The idea of this transatlantic joint venture begins in 2017. It is estimated that this partnership will represent 23% of total transatlantic capacity and a combined revenue of $13 billion annually.

Air FranceKLM and Delta have been in a joint venture partnership between Europe and North America since 2009, while Virgin Atlantic and Delta have had a partnership between the U.K. and North America since 2013. As explained by Virgin Atlantic, establishing a single transatlantic joint venture was the next strategic step in the collaboration between the airlines

As of now, here is the complex ownership structure between Air FranceKLM, Delta and Virgin Atlantic, along with indirect shareholdings of other airlines. These airlines holding indirect interest will also benefit from the synergy arising from this joint venture between these four airlines.

a diagram of a plane

Things To Know For Frequent Flyers

  • All Frequent Flyers from Air FranceKLM, Delta and Virgin Atlantic will be able to enjoy status benefits and earn and redeem miles across these four airlines starting from 13th Feb. They will also enjoy existing status benefits across the four airlines.
  • Currently, Virgin Atlantic has yet disclosed the redemption rates for Air France – KLM flights. Likewise, Air France -KLM’s Flying Blue has yet released the earning and redemption rates for Virgin Atlantic flights.

It is worthwhile for these frequent flyers to reassess their loyalty program strategy, especially Flying Blue members. Generally speaking, redemption using Virgin Atlantic miles is usually more lucrative than using Flying Blue miles.