Carriers tap Open Skies via JV

AIR France-KLM and Delta Air Lines Inc announced a joint venture yesterday allowing them to share revenue and profits on trans-Atlantic routes, taking advantage of the new "Open Skies" agreement between the United States and Europe.

The joint venture will launch in April and have estimated annual revenue of US$1.5 billion in its first phase and US$8 billion in the second phase, the companies said in a statement.

It will cover nonstop flights operated by Air France-KLM and Delta between several European and US hubs of the two carriers.

The announcement came the day after Delta reported a wider third-quarter profit and its chief executive said a deal with another airline may be in its best interest.

Many airlines want to take advantage of the "Open Skies" deal, which will allow airlines to fly from anywhere in the European Union to any point in the United States as of March 30.