Air France KLM is to acquire a 31% stake in Virgin Atlantic Airways and Delta Air Lines and China Eastern Airlines will each take a 10% stake in Air France KLM in a parallel deal.
Liezl Gericke, country manager South Africa of Virgin Atlantic, says the joint venture with Air France KLM will apply to transatlantic routes only so there will be no tangible impact on the Johannesburg-Heathrow service, or to onward connections.
Liezl says the agreement has not come into effect yet as it is subject to regulatory approvals. Once approved, it will benefit customers travelling between the UK or Europe and the US. “It’ll bring improved network reach with more destinations, and we’ll look to co-locate our operations at key hubs. There’ll also be closer schedule co-ordination between the airlines, leading to easier, quicker connections for customers.”
Customers who belong to the loyalty programmes of the airlines concerned will also be able to use their miles to more destinations.
If the deal goes ahead, Delta will retain 49% of Virgin Atlantic, making it the largest shareholder in the UK carrier. Air France KLM will acquire a 31% stake in Virgin Atlantic, currently held by the Virgin Group, for £220 million (R3,85bn).
