(NEW YORK) — Delta wants to purchase Singapore Airlines’ 49 percent stake in Virgin Atlantic to create a joint partnership that would allow the airlines to share resources. The deal would be worth $360 million.
“They would cooperate on the sales, they would cooperate on scheduling and they would share costs and share profits,” said Genevieve Shaw Brown, ABC News’ travel and lifestyle editor.
The deal will require approval from U.S. and European regulators. Delta hopes to have the partnership up and running by the end of 2013.
Under terms of the deal, Richard Branson would retain control of Virgin; the brand name will also stay.
“It signals the start of a new era of expansion, financial growth and many opportunities for our customers and our business,” Virgin Atlantic president Sir Richard Branson said of the potential partnership.
For Delta, it means a boost to the airline’s share of the lucrative New York-to-London market.
“Delta is such a huge presence in the U.S., but they’ve been sort of underrepresented on that particular route,” Brown said.
And what would this mean for travelers? “The more competition the better for pricing,” Brown said. She added, “travelers would be able to earn frequent flier miles on both Delta and Virgin Atlantic.”
Copyright 2012 ABC News Radio
Kathryn Vasel, CNN
Jacqueline Howard, CNN
Aaron Smith, CNN Newswire