MIAMI — Delta Air Lines has purchased a 10% stake in Air France-KLM for €375 million. The acquisition will also give Delta a seat on the Air France-KLM Group Board of Directors.
In addition to this acquisition, Delta, Air France-KLM, and Virgin Atlantic will be launching a long term joint venture. The joint venture will be supported by a 31 percent investment by Air France-KLM in Virgin Atlantic.
“A dynamic global landscape means it’s more important than ever for Delta to deepen ties with our global partners to provide opportunities for mutual growth,” said Delta CEO Ed Bastian. “Bringing together the strengths of Delta, Air France-KLM and Virgin Atlantic into a combined joint venture will create the trans-Atlantic partnership of choice for customers.”
Delta and Air France-KLM have had an existing joint venture since 2009.
“During the past decade, Delta’s global partnerships have fueled significant international growth,” said Steve Sear, President – International & EVP – Global Sales. “As we further develop these partnerships, our ability to align network, sales and other commercial and operational initiatives will provide even greater benefits for our customers and employees.”
Delta’s acquisition of Air France-KLM is the latest in a series of investments in other airlines from the Atlanta based carrier. The following is a list of Delta’s recent investments in foreign airlines:
- 2012: $65 million for 4.2% of Aeromexico
- June 2013: $360 million for 49% of Virgin Atlantic
- July 2015: $450 million for 3.55% of China Eastern Airlines
- March 2017: $620 million for an additional 32% of Aeromexico (49% ownership with share options)
Together with Alitalia, the joint venture will offer nearly 300 daily nonstop trans-Atlantic flights.
Airways will update this story as more information becomes available.