ATW Daily News

Delta, Virgin Blue to partner over Pacific

Friday July 10, 2009

Delta Air Lines and Virgin Blue announced, subject to regulatory approval, a joint venture that will expand both carriers' reach in the US, Australia and the South Pacific through an alliance involving route and product planning, codesharing and loyalty program linkage.

According to Delta Executive VP-Network and Revenue Management Glen Hauenstein, the airlines will be stronger and more effective competitors as a result. "For Delta, this agreement is a significant milestone in the expansion of our global network in the Australia and South Pacific region," he said. Virgin Blue CEO Brett Godfrey said the carriers "make a tremendously exciting fit."

In advance of the JV, the two are moving to implement codeshares, frequent-flyer program reciprocity and lounge exchange privileges. They are filing antitrust immunity applications with the US Dept. of Transportation and the Australian Competition and Consumer Commission.

That application will face stiff opposition in Australia. In January, Air Canada's and Air New Zealand's application to codeshare on Vancouver-Sydney and Vancouver-Auckland services was rejected by the ACCC following protests from Qantas (ATWOnline, Jan. 28).

Delta launched a daily Los Angeles-SYD service on July 1 with a 777-200LR while V Australia, a Virgin Blue subsidiary, began daily LAX-SYD flights aboard a 777-300ER in February. V Australia since has launched a Brisbane-LAX service and plans to operate Melbourne-LAX from Sept. 1.

The partnership builds on the relationship between Blue and Northwest Airlines prior to the latter's acquisition by Delta (ATWOnline, April 1, 2008).

by Geoffrey Thomas

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