Access + $$$
The One Mile at a Time blog said it well “If a codeshare agreement is like dating, then a joint venture is like getting married.” JV partnerships allow Delta to coordinate pricing and schedules with their JV partners and they agree to share revenue regardless of which airline operates each flight.
JVs, however, also require an extensive approval process. For example, JV agreements require government approval (antitrust immunity) and, at Delta, trigger negotiations with ALPA. Delta can only enter into a JV with a foreign carrier if Delta metal flies at least four round trips per week from the United States to the home country of that foreign carrier, and cannot reduce block hours to the partner’s home country (unless ALPA negotiates new terms). At Delta, JVs are also subject to all the restrictions in Section 1 of the contract.
Antitrust immunity is a crucial element to joint ventures – allowing Delta to act as one entity with its JV partner, coordinating on routes, fares and schedules. Antitrust immunity allows two companies to operate as if they were one, for the purposes of their agreement.
Delta currently has four active JVs (Air France/KLM/Alitalia, Aeroméxico, Virgin Atlantic and Virgin Australia) and two pending JVs (Korean Air and WestJet).
Read About Delta’s Joint Ventures
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Air Cargo News covers LATAM adding US Europe cargo flights
Air Cargo News recently covered how LATAM Cargo has launched services from Europe to the US for the first time. This is due to passenger carriers axing services in response to the coronavirus outbreak. LATAM Cargo said the new service is part of a series of...
Simple Flying covers Delta agreement with LATAM
Simple Flying covers Delta Signs New Joint Venture Agreement With LATAM Delta Air Lines and LATAM Airlines have signed their highly anticipated joint venture agreement. The deal promises new levels of interconnectivity when traveling throughout the Americas. While...