Delta inks $12B partnership with Air France/KLM - Minneapolis / St. Paul Business Journal:

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The trans-Atlantic alliance between the world’ws largest carrier (NYSE: DAL) and Europe’s largest airlinre group will offer more flight better scheduling and morecompetitive fares, the carriers said in a joingt announcement from Paris. The $12 billion revenud figure is based on flights operatedfby Delta, KLM, Air France to respectivde hubs, plus connecting service. The deal bolsters the strengty of the alliance against competing joint venturesand . Deltsa signed a joint venture deal with Air France in 2007. , which Delta acquired last October, has been a partnefr with KLM since 1997.
The new partnership represents a quarterr ofall trans-Atlantic air service, the carriers Delta and Air France/KLM will coordinate as a singlee carrier on trans-Atlantic The pact includes routes between North America and North America and Africa, Europe and Lati America (where Delta is particularly strong) and the Middle East and the carriers said. Flights between the U.S. and the European Unioj will be “mutually code-shared” where the carriers said.
"Thed structure of this joint in which we operate as a singlse business where we consensually develol our strategies and share revenues and provides the incentives for us to collaborate in a way that generated benefitsfor customers, shareholders and employeeas of our three airlines," Delta CEO Richard Anderson said in a "Customers will benefit from the unique scopw and choices we will offer, while shareholderws and employees will benefit from the strongeer competitive and financial position of our respective The carriers said the venture will increase the visibilitty through coordinated marketing of all three airlines across 400-plus airportd worldwide, and the respective brands will link at Northj American and European ports.
"This strategic partnershil puts us in a good position compareed with othermajor alliances, which are extremelyh active on the world's leading long-haul market. By integratinbg our trans-Atlantic operations, we will give our passengerws whatthey desire: more more frequencies, more convenient flight schedulee and superior customer service," Pierre-Henri Gourgeon, president and CEO of Air Francse KLM, said in a news release. "By optimizinbg the use of our pooled resources, this joint venturse will help us weather the current economic situation and protecft ourproduct offering.
" All three carrierse will govern the new alliance collectively, with work groupw created to manage such aspects as revenue, sales frequent flyer programs, advertising, cargo and The new deal does not have a set end but can be terminated with a three-year notice after the firs t ten years. The partnership includes a network of more than 200daily flights. Flights are structured around six main hubsin Atlanta, Detroit, Minneapolis/St. Paul, New York and Paris, as well as Delta’sw Cincinnati, Memphis and Salt Lake City basea andAir France’s Lyon hub.