9 July 2009

Virgin Blue has just announced plans to form a joint venture with Delta Air Lines which would allow both carriers to collaborate on route planning, codesharing, frequent flyer programs and lounge access.

The carriers said they plan to seek regulatory approval for the move which will expand their respective reach between the US and Australia and the South Pacific.

"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," said Delta executive vice president for network and revenue management, Glen Hauenstein.

"For Delta, this agreement is a significant milestone in the expansion of our global network in the Australia and South Pacific region," he added.

DJ ceo Brett Godfrey said the move would offer travellers many new benefits and possibilities, while "the alliance of two new entrant operators will ensure that vital competition is sustained on the trans-Pacific route."

The statement said that in advance of the JV the carriers are moving forward to implement codesharing, frequent flyer program reciprocity and lounge exchange privileges, with Delta and Virgin Blue to file antitrust immunity applications with the US Department of Transportation and the Australian Competition and Consumer Commission today.