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Delta and Virgin Blue propose 'down under' alliance
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Delta Air Lines has announced plans to align their new Australia service with that of Virgin Blue Airlines Group , the Australia-based airline that serves both domestic and international markets from ‘down under’. The proposed alliance will require government approval from the U.S. Department of Transportation and Australia’s anti-trust regulators.
Service between Los Angeles (LAX) and Sydney was inaugurated by Delta on July 1, while Virgin Blue already serves that route, as well as between LAX and Brisbane. New service is planned connecting Melbourne and LAX this coming September.
In addition to their trans-pacific international services, Virgin Blue operates to 24 cities in Australia and New Zealand with more than 2,400 weekly flights. The Delta/Virgin Blue alliance will include code-sharing on both airline networks, links between their frequent flyer programs and the reciprocal use of airport lounges. Flight frequencies and schedules will be linked to provide many more choices of destinations.
Delta has reported huge traffic reductions for the month just ended, with June domestic traffic down 4.7 percent, international overall down 8.7 percent, and Pacific region traffic down an astounding 17.5 percent from last year. Both carriers see a tremendous fit between their route systems and are anxious to receive regulatory approval as quickly as possible in order to assist each through the very weak economic climate.
