The Reuters news agency is reporting that Elaine Chao, The US Transportation Secretary has already given tentative approval of a vastly expanded transatlantic tie-up between Delta, Virgin Atlantic and Air France-KLM.
The expanded joint venture builds up from the two previous joint ventures and will allow a greater saturation of the market, mileage earning potential and legalised fare fixing. The tentatively approved antitrust immunity for the joint venture and will require the carriers to report annually on commercial cooperation efforts and provide a detailed assessment after five years, the statement said.
Delta currently owns 49% of Virgin Atlantic - more than any other entity and its investment directly in Air France-KLM stands at 9%, however, it owns another two percent via subsidiaries and private investment holdings.
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