Delta Air Lines Inc. (NYSE:DAL) and the Virgin Blue Airlines Group are seeking approval for a
joint venture that will lower their costs to operate U.S. to Australia routes. The companies hope to pool revenue, collaborate to plan routes and introduce new products, and even to use one another's planes. Both Virgin and Delta have only recently begun flying U.S. to Australia routes -- Delta began just last week -- and the JV is designed to help them better compete with incumbents Qantas Airways Ltd. and United Airlines.
As a first step, according to
The Australian, the carriers have filed applications for antitrust immunity with the U.S. Department of Transportation and the Australian Competition & Consumer Commission. And in advance of the JV, they're also planning to implement code sharing, frequent flyer program reciprocity and lounge exchange privileges.
The news comes as airlines around the world are battling the strong headwinds of the recession. In March,
Delta announced plans for more job cuts and a 10% reduction of its international capacity. And since April, Qantas has slashed more than 1,000 jobs and
canceled or delayed delivery of new planes. - Suzanne Stevens
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