Delta Airlines is back in the all cargo business…

May 27, 2009 by Splatty  
Filed under Air Cargo, Airlines

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…thanks to a recently announced joint venture with the Air France KLM group. The terms of the 10 year agreement will allow the carriers to jointly operate their trans-Atlantic business by “coordinating operations and sharing revenues and costs of their trans-Atlantic route network”.

Via Delta.com:

“This strategic partnership puts us in a good position compared with other major alliances, which are extremely active on the world’s leading long-haul market. By integrating our trans-Atlantic operations, we will give our passengers what they desire: more choice, more frequencies, more convenient flight schedules and superior customer service,” said Pierre-Henri Gourgeon, president and CEO of Air France KLM. “By optimizing the use of our pooled resources, this joint venture will help us weather the current economic situation and protect our product offering.”

News of the joint venture came just weeks after Delta announced the grounding of the entire Northwest freighter fleet. The new JV will provide Delta with access to the freighter equipment of Air France, KLM and Martinair.

Here are the highlights of the JV from Delta’s official press release:

* More than 200 daily transatlantic flights (100 roundtrips)
* The joint venture represents approximately 25 percent of total trans-Atlantic capacity.
* Over 400 destinations in Europe and in North America
* Annual revenues estimated at more than US$12 billion (approximately 9.3 billion euros, reference year 2008/09).
* Over 100,000 employees at Air France KLM
* 70,000 employees at Delta
* The venture is a long-term, evergreen arrangement that can only be cancelled with a three year notice, after an initial term of 10 years.

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