Adelman Advisor

Airline Briefs

Air France-KLM, Delta and Virgin Atlantic

Definitive agreements relating to a planned three-way transatlantic joint venture are now in place between Air France-KLM, Delta and Virgin Atlantic. As part of this triple partnership, Air France-KLM will purchase 31 percent of Virgin Atlantic. Earlier this year Delta acquired a 10 percent share of Air France-KLM and a seat on the company’s board. Delta already has a joint venture in place with Virgin Atlantic. Airline officials said, “Air France-KLM, Delta and Virgin Atlantic will now coordinate efforts to secure the appropriate regulatory approvals.” Barring any regulatory delays, the carriers hope to launch the expanded joint venture in 2019.

 

Lufthansa Group Airlines

Mimicking the strategy of other major airlines such as American, British Airways and Delta, Lufthansa Group Airlines will offer new low but highly restricted “Economy Light’ fares on transatlantic routes starting with its summer service. Airline officials note, “The new fares will be the least expensive option for price-conscious travelers only traveling with carry-on luggage and who do not require any ticket flexibility.” Lufthansa Group Airlines include Lufthansa, Austrian Airlines, Brussels Airlines and SWISS.

 

Scandinavian Airlines

SAS is rolling out in-flight Internet service on medium- and short-haul flights between Scandinavia and other European destinations. So far 28 aircraft are outfitted with the new service. SAS officials said that number will increase to 40 by September. Most SAS aircraft will be equipped by early 2020. Gate-to-gate access will be powered by Viasat.

 

United Airlines

As part of a reorganization of its offerings at its main East Coast hubs, United announced that it will adjust the schedules of about two dozen of its flights. In addition to make room for new offerings at Newark, United will move to Washington Dulles its service to Chattanooga, Ithaca and Scranton/Wilkes-Barre. In October United will discontinue non-stop service from Newark to Baltimore, Des Moines, Fort Wayne and Hartford. Newark-Sacramento will become seasonal only.

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