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Delta-Virgin Blue Group JV - At last a challenge to Qantas?

 
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rutvij
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PostPosted: Fri Jul 10, 2009 2:16 am    Post subject: Delta-Virgin Blue Group JV - At last a challenge to Qantas? Reply with quote



Delta-Virgin Blue Group JV - At last a challenge to Qantas?

Quote:
V Australia/Virgin Blue and Delta are to seek anti-trust immunity in the US and Australia to establish a “joint venture” in their US-Australia markets. There was no further clarification of what is covered by the expression or of any timing. But it is clearly intended to describe a relatively close relationship.

The two are already “moving forward to implement” codesharing, frequent flyer programme reciprocity and reciprocal lounge facilities.

According to the joint release, “The alliance will allow Delta and the Virgin Blue Airlines Group to compete more effectively in those markets (“between the U.S. and Australia and the South Pacific”) by collaborating on route and product planning, codesharing on their respective networks and extending frequent flyer program benefits and lounge access to customers of both airlines.”

As the carriers’ releases are not explicit, it is not clear if the JV is intended to extend to behind gateway service - “between the US and Australia and the South Pacific” appears less than that. However, the intention is apparently for each airline respectively to codeshare on all routes connecting directly into the point of arrival or departure. So, for example all points linked directly to Los Angeles will be available for codeshare on V Australia services.

In Mar-2009, Virgin Blue announced an interline agreement between the two, allowing “travellers to purchase a single ticket from V Australia or Delta for travel on the networks of each carrier.” A codeshare would go a lot further.


Further Analysis here:

http://www.centreforaviation.com/news/2009/07/09/delta-virgin-blue-group-joint-venture-at-last-a-challenge-to-qantas/page1
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