A transatlantic alliance between 3 global airlines will shore up their position in the lucrative UK-US market, shielding them from low-cost rivals and the uncertainties of Britain's exit from the EU. Delta Air Lines, Air France-KLM and Virgin Atlantic have announced plans for a 15-year partnership on routes between Europe and the US and equity deals which will see them take stakes in each other. The joint venture, announced Thursday, will see the 3 carriers share their profits on transatlantic routes. It will give Air France-KLM greater access to the Britain-US market - among the most profitable - while the Franco-Dutch group's short-haul European flights could bring more customers to Virgin's US-bound flights from London. The ability to offer customers a host of extra flights could give Delta an edge against domestic rivals. <br/>
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Air France-KLM saw a turnaround in its financial results in the 2017 first half, delivering a group net profit of E151m (US$176.8m), reversed from a loss of E114m in the same period a year ago. First-half revenue rose 4.2% year-over-year to E12.3b, up from E11.8b in 1H 2016. “In a context of solid traffic growth and enhanced unit revenue trend, Air France-KLM delivered improved operating income and operating free cash flow,” Air France-KLM chairman Jean-Marc Janaillac said. “Over the period, the group continued to execute on its strategic priorities of growing revenues and improve competitiveness. The agreement reached with Air France pilots in July allows the Group to launch the creation of [lower-cost mid- to long-haul subsidiary] Joon in line with the original schedule.” <br/>
China Eastern Airlines chairman Liu Shaoyong said the carrier’s role in the new transatlantic joint venture—between Air France-KLM, Delta Air Lines and Virgin Atlantic—is to enhance its position in the Sino-Europe market. China Eastern is expected to purchase a 10% stake in Air France-KLM with a E375m (US$439m) investment, the biggest overseas strategic investment for the carrier. China Eastern would also appoint one director to Air France-KLM’s board.“ China Eastern, Air France-KLM and Delta have established good cooperative relationships, which have laid a solid foundation for our strategic investment in Air France-KLM. We [three SkyTeam carriers] look forward to forging closer strategic cooperative partnerships on the global scale,” Liu said. <br/>
Delta Air Lines Saturday said it would cut its once-weekly flights from Atlanta to Caracas, Venezuela, in the latest instance of a US airline cutting operations with the embattled nation. "Delta will suspend its once per week service between Atlanta and Caracas, with the final southbound flight scheduled for Sept 16, 2017," a Delta spokeswoman said. Avianca said Thursday it would suspend flights to and from Venezuela immediately, instead of in mid-August, because of "operational and security limitations registered during the last few hours." Many airlines have been in protracted disputes with the Venezuelan govt over billions of dollars of ticket sales made in the beleaguered local currency. IATA said last month Venezuela owes airlines more than US$3.8b. <br/>