Air France-Delta Launch a Trans-Atlantic Joint Venture

According to reports, in its initial phase to begin in April 2008, the joint venture will include nonstop flights from Air France French hubs including Paris-Orly, Lyon and Paris Charles De Gaulle and London-Heathrow and Delta’s Atlanta, New York JFK, Cincinnati and Salt Lake City hubs. The airlines expect to garner annual revenues of $1.5 billion annually, then an annual $8 billion in the second phase. Added to the venture in 2010 will be flights between Europe, the Mediterranean and North America as well as flights from Los Angeles to Tahiti.

The joint venture will not be a subsidiary of the airlines. A steering committee composed of representatives of both airlines will manage the endeavor in working groups that will cover the network, revenue management, sales and distribution, products and services, frequent flyer programs, operations, IT, finance and cargo.

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