28.07.2017, 12:11
Air France-KLM strengthens its strategic partnerships
Source: KLM
OREANDA-NEWS. Air France-KLM today announces a further major step in the reinforcement of its strategic partnerships with, firstly, the creation 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 commercial alliances will be strengthened by capital links:
Air France-KLM will acquire Virgin Group’s 31% stake in Virgin Atlantic for 220 million.
Delta and China Eastern will each acquire a 10% stake in Air France-KLM within the framework of reserved capital increases totalling €751 million.
The strategic, commercial and equity investment of these partnerships will position Air France-KLM as the European pillar of the leading global airline network.
All of these agreements will enable Air France-KLM to offer its customers an expanded network and to capitalize on the pooling of extensive distribution networks. As an integral part of the Trust Together strategic project, these partnerships will support the Group’s profitable growth and enable Air France-KLM to offer its customers an unparalleled proposition.
At the heart of the most global partnership in the airline industry
The combination of the existing joint ventures between firstly Air France-KLM, Delta and Alitalia, and secondly between Delta and Virgin Atlantic, within a single joint-venture marks the expansion and reinforcement of one of the most advanced partnership models in the airline industry. This joint venture will enable the Group* to:
Offer customers an unrivaled proposition on transatlantic routes.
Drive the capacity growth of the partners.
Create an associate partner status enabling the inclusion of other players.
Extend a partnership over a 15-year period.
Generate significant annual synergies thanks to a new code share to/from London, sales coordination, the extended partnership and cost savings.
The creation of this joint-venture will thus consolidate Air France-KLM’s leadership position in the North-American and European markets with the largest airline network articulated around twelve 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, Salt Lake City and Seattle.
Air France-KLM will acquire Virgin Group’s 31% stake in Virgin Atlantic for 220 million.
Delta and China Eastern will each acquire a 10% stake in Air France-KLM within the framework of reserved capital increases totalling €751 million.
The strategic, commercial and equity investment of these partnerships will position Air France-KLM as the European pillar of the leading global airline network.
All of these agreements will enable Air France-KLM to offer its customers an expanded network and to capitalize on the pooling of extensive distribution networks. As an integral part of the Trust Together strategic project, these partnerships will support the Group’s profitable growth and enable Air France-KLM to offer its customers an unparalleled proposition.
At the heart of the most global partnership in the airline industry
The combination of the existing joint ventures between firstly Air France-KLM, Delta and Alitalia, and secondly between Delta and Virgin Atlantic, within a single joint-venture marks the expansion and reinforcement of one of the most advanced partnership models in the airline industry. This joint venture will enable the Group* to:
Offer customers an unrivaled proposition on transatlantic routes.
Drive the capacity growth of the partners.
Create an associate partner status enabling the inclusion of other players.
Extend a partnership over a 15-year period.
Generate significant annual synergies thanks to a new code share to/from London, sales coordination, the extended partnership and cost savings.
The creation of this joint-venture will thus consolidate Air France-KLM’s leadership position in the North-American and European markets with the largest airline network articulated around twelve 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, Salt Lake City and Seattle.
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