Originally Posted by
nw320driver
I see this deal being revised to one similar to Air France's and KLM's combination. They create a holding company and operate as separate carriers. The holding company will reap many of the benefits of a merger by coordinating routes, fares and financial operations. Under such a scenario, Delta and Northwest pilots would remain separate.
Isn't this getting real close to what you are talking about?
Air France and Delta Air Lines (NYSE: DAL) today signed a joint venture agreement to share revenues and costs on their trans-Atlantic routes. The deal will encompass combined revenues of approximately US$1.5 billion annually during the first phase of the operation and more than US$8 billion annually for the second phase. Ultimately, the joint venture is expected to increase revenues, competition and customer travel choices on key routes across the Atlantic.
The first phase will begin April 2008 and will include all non-stop flights operated by Air France and Delta between Air France’s Paris-CDG, Orly, and Lyon hubs, and Delta’s Atlanta, New York – JFK, Cincinnati and Salt Lake City hubs. It will also include flights operated by both carriers between London-Heathrow and the US. A combined 19 daily flights and more than 4,500 seats per day – a 45% increase – are expected to be part of the first phase of implementation.
By 2010, the agreement will be extended to all trans-Atlantic flights operated by Air France and Delta between Europe and the Mediterranean on one side and North America on the other side, as well as all flights between Los Angeles and Tahiti.