from news.com.au
DELTA Air Lines and the Virgin Blue say they plan to form a joint venture that will expand both carriers reach between the US and Australia and the South Pacific.
The airlines said today that they would seek regulatory approval to form a joint venture, but would collaborate on codesharing, frequent flyer reciprocity and in other areas in the meantime.
"Together, Delta and the Virgin Blue Airlines Group will be a stronger and more effective competitor by offering consumers greater choice of destinations, frequencies and schedules, all on leading-edge aircraft for network and revenue management,'' Delta executive vice president Glen Hauenstein said.
"For Delta, this agreement is a significant milestone in the expansion of our global network in the Australia and South Pacific region.''
Delta began flying non-stop, daily services between Australia and the United States on Wednesday, July 1.
Chief executive officer of Virgin Blue, Brett Godfrey, said Virgin Blue and Delta made a "tremendously exciting fit''.
"Not only will we offer travellers many new benefits and possibilities, but also the alliance of two new entrant operators will ensure that vital competition is sustained on the trans-Pacific route.''
V Australia, a Virgin Blue Group airline, also operates a daily, non-stop Boeing 777 service between Los Angeles and Sydney, and services three times weekly between Los Angeles and Brisbane.
A new, three times weekly service between Los Angeles and Melbourne is planned for September, 2009.
Virgin Blue shares closed at 29 cents yesterday.