Largest global air partnership formed

The largest airlines of three continents – America, Europe and Asia – have reached a commercial partnership that is likely to emerge in the coming years to redefine the face of European and North American airlines: Delta Airlines announced that it intends to acquire, through a 375 million euro increase in capital, 10% of the French-Dutch Air France- KLM.
At the same time, Air France-KLM pledged to buy for 246 million Euros 31% of Virgin Atlantic, becoming its second shareholder behind Delta, which already controls 49% of the capital the company founded by Richard Branson in 1984. Au-par China Eastern committed – by the same figure – to 10% -of the French-Dutch group, putting more than one foot in Europe. Even in this case, the dagger of Delta, which has a minority stake (3.5%) in China Eastern.

The arrival of Chinese and Americans in Air France-KLM, therefore, will materialize in the form of a capital increase of 750 million euros. The officiality of the operation is scheduled for 2018, after the France-Dutch group shareholders (on 4 September the extraordinary shareholders’ meeting) and the competent authorities. “Bringing together the Delta, Air France-KLM and Virgin Atlantic forces into a single joint venture will create a transatlantic partnership for customers advantage,” said Delta Ed Bastian.

Delta moves

With Delta’s heading the operation moves, the main companies of the Sky Team alliance have crossed their holdings to create a “long-term joint venture” for both transatlantic flights – whose binding agreement in Sky team includes Alitalia – but also for routes around the world.

KLM

Both goals are the natural result of what Delta has done over the last few years. On the one hand, since 2009, the company has already set up a transatlantic joint venture with Air France-KLM and Alitalia, which, once the new agreements are launched, will be strengthened to offer nearly 300 non-stop daily transatlantic flights, which will benefit from greater Connectivity, service exchanges, and combined schedules. On the other hand, it is now clear that Atlanta’s interests are moving globally as no other carrier on the planet.
Close to bankruptcy in 2007, after the merger with Northwest Airlines, the new Delta began to look strong abroad, gaining shareholdings in Brazilian GOL (9.5%), courting Aero Mexico for a long time (49% of its subsidiaries) and Signing – a few months ago – an important partnership with Korean Airlines.

“Over the last ten years, Delta’s global partnerships have fuelled significant international growth,” said Steve Sear, President of Global Sales, adding: “When we develop it further, we will align sales networks and business initiatives, so we will be even more beneficial for customers and employees.”

What about Alitalia?

Alitalia is also part of the Sky Team alliance and the existing transatlantic joint venture. It is easy to think that even the disastrous tricolour company is somehow touched by the moves of Delta and members. It is difficult, however, to say whether Delta – as the Italian press wrote some time ago – is really interested in Alitalia, so the problems seem endless.
On July 21, a dozen unrestricted offers for Alitalia were officially cleared. Would there be among them a letter from Atlanta?

Author’s Notes

As anticipated by eTN, “The price tag for Air Berlin and Alitalia US 1.87 billion in a net loss. This is the result for the government owned national carrier for the UAE: Etihad Airways.
This was indicated recently with a number of cost saving measures including cancelling service to San Francisco and eliminating free limousine transfer for business class passengers. Etihad Airways today announced its 2016 financial results, recording a net loss of US$ 1.87 billion on US$ 8.36 billion in revenues as one-off impairment charges and fuel hedging losses weighed against a solid performance of the core Airline.”

It is known that most of the financial loss is to be charged to Alitalia since under Etihad the refurbishing of the airline absorbed considerable amounts of euros. In addition to the historically known incompetent management, their maniacal attitudes on expenditures eccessive salaries, fringe benefits, (heritage of a flag air carrier days) excess of staff dragged in with the support of polititians, nepotism, strong authority of the workers unions, and more.

It is suprising to imagine that an airline that on the market for sale attracts interest only for their slots and spare parts could enter in partnership with such strong group of airlines. Knowing that even Etihad got rid of Alitalia. The Italian political “jenius” are the culprits of her death. Her destiny could have been better if the “jenius” decisin to undo the established partnership with Air France-KLM had remained alive. Today no one is interested in a big mum with 20.000 spoiled children to feed and a new loan-bridge of 600 ,million euro obtained by the Italian government to give a chance for survival. Money in the wind since i twill finally be written off. As usual!