Air France-KLM teams up with Delta on transatlantic routes

Air France-KLM, continental

Europe’s largest airline, has announced an agreement with US-based Delta Air Lines that would allow the two carriers to cooperate more effective on transatlantic routes, by sharing revenue. This agreement is possible thanks to the recently signed Open Skies pact between the

United States and the European Union, allowing for freer air travel between EU and US airports. If all goes according to plan, the new arrangement between Delta and Air France-KLM will take wings in April 2008 and may generate approximately $1.5 billion in revenue during the initial stage of the project.

British Airways stands to lose the most if Air France-KLM decide to pool revenues and cooperate on transatlantic routes. There is, however, word that BA may follow the lead of the Franco-Dutch airline and work out a deal of its own with another carrier. The most likely candidate for this is American Airlines.

According to the current Air France-Delta deal, the US based carrier will gain in-roads to Heathrow Airport, widely considered the gateway to Europe, as AF has agreed to let its new partner share revenue from three of its landing slots, including one that serves a direct flight between London and Los Angeles, as well as a non-stop route to Atlanta. Delta will also begin offering passengers more choice in terms of direct flights from Paris to major cities in the US, by launching new routes to Salt Lake City (

Utah) and New York-JFK. Additionally, Delta will begin operating flights from Lyon to

New York City next year. If the deal goes ahead as planned, some are suggesting that the Delta-Air France-KLM partnership will be the largest such network anywhere in the world.

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