Delta and Virgin Atlantic, who recently announced a joint venture in the near future, say their alliance would bring about more competition in the aviation industry.
According to a report on Travel Weekly, the top priority for the airlines is to "cooperate on codesharing in the U.S. and the U.K. domestic markets and to establish reciprocity with frequent-flyer programs so members can earn and burn miles on both airlines."
According to the terms of the joint venture, Delta and Virgin Atlantic will hold the second position in the airlines operating between U.S. and U.K with a 24-25 percent share of the market.
The report also states "British Airways and American Airlines, combined, have a 60% market share of the U.S-U.K. market."
Delta CEO Richard Anderson said in a press conference that by associating with Virgin Atlantic they would be raising the status of their own brand.
"We will work with them over time to make certain all is well coordinated between the two joint ventures," he said.
"(Delta) offers complementary strengths, pointing out that it has made huge investments in its own brand and service," Anderson said. "That includes building a new $1.4 billion facility at New York 's JFK Terminal 4, where Virgin and Delta both happen to be located. It is also building a new hub at New York's La Guardia Airport.
"As you know, Virgin is one of the scrappiest competitors in the marketplace, and when you match that with a great product like Delta has, consumers will be the winner with an alternative to the 60% [BA-American] joint venture." he said. "Now we will have real competition, and competition makes companies better."
