Rumours circulate around Virgin Atlantic, Delta venture
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The US Department of Transportation (DOT) has approved a codeshare agreement between Virgin Atlantic and Delta as the airlines wait to hear about the future of their joint venture.
Tweets from Flightglobal journalist Edward Russell at the Paris Air Show said the DOT had approved a “limited” codeshare between the airlines but not immunity. This would cover international routes and see Delta place its code on Virgin Atlantic’s Little Red flights.
It comes after a source at the European Commission (EC) told Reuters that it was due to clear the deal without conditions, which would see Delta take a 49% stake in Virgin Atlantic and the pair split costs and revenue on flights between the USA and UK. An unnamed source told the newswire the EC does not think the deal would affect competition in the trans-atlantic air market.
If this comes into fruition, the launch of the airlines’ joint activity would be put in doubt after they previously said they would not go ahead without immunity.
Both airlines will not comment on the rumours while regulators consider the venture, which is expected to see a decision announced on Thursday (20 June).
Competition regulators will be assessing the impact of the trans-atlantic venture, which would aim to compete with the American Airlines/British Airways tie-up. Virgin Atlantic and Delta have said they believe the BA/AA venture, as well as the recently-grown United Airlines, dominate travel between the USA and UK.
More to follow.
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