Delta Air Lines to buy 49% stake in Virgin Atlantic

Delta Air Lines to buy 49% stake in Virgin Atlantic

PanARMENIAN.Net - Delta Air Lines agreed to buy a 49 percent stake in Virgin Atlantic, creating a joint venture that would expand Delta's access to London's Heathrow Airport and increase competition in the lucrative transatlantic market, according to Reuters.

The partnership would let both carriers offer more flights at Heathrow, Europe's busiest airport, where landing-slot constraints have limited their growth. It also gives Delta the ability to attract prized corporate travelers as it competes with industry leader United Continental and American Airlines, whose partnership with British Airways dominates travel between the United States and London.

Delta and Virgin said their agreement would generate new revenue and leverage Virgin's strong luxury brand. The venture also will be "very positive and accretive for our long-term partners ... KLM, Air France and Alitalia," Delta Chief Executive Richard Anderson said, referring to the European airlines with which Delta already has partnerships.

 Top stories
A relevant agreement was signed by the minister of finance Gagik Khachatryan and German ambassador to Armenia Rayner Morel.
The total cost of the final deal is over AMD 85.8 billon to be paid in two equal halves, after completion of the deal formalities.
Aleksei Miller was also scheduled to meet with government officials in Germany, which is a major customer of Gazprom’s supplies.
Access to finance is a major impediment to the growth of micro, small and medium enterprises, especially in the rural areas.
Partner news