
► A significantly expanded offer and increased revenue
A joint-venture agreement was signed by Air France and Delta Air Lines on 17 October 2007.
This agreement is based on the principle of sharing costs and revenues on North Atlantic routes operated by both airlines.
The benefits: an unprecedented increase in flight routes and schedules to North Atlantic destinations and closer cooperation regarding the design of products and harmonizing schedules and fares. The joint-venture agreement should generate increased revenue.
This came into effect in April 2008, the first phase of the joint-venture includes all transatlantic flights between Air France and Delta’s hubs, as well as all flights operated by both carriers between London-Heathrow and the United States.
Several routes have been launched as part of the 2008 summer schedule: flights now operate out of London-Heathrow to New York, Atlanta, and Los Angeles, and there are also flights from Lyon to New York, as well as between Paris-Charles de Gaulle and Salt Lake City.
As from 2010, the joint-venture will cover all trans-Atlantic flights between Europe and the Mediterranean on the one side, and North America, Canada and Mexico on the other.
The joint-venture is expected to earn up to $1.5 billion in revenue annually during the first phase of the venture and over 8 billion during the second phase.
focus
What is a joint venture (JV)?
A joint-venture (JV) does not refer to a specific legal structure under French law, but may be described as an agreement of cooperation between two or more companies, formed for a specific purpose.
There are two types of joint-venture: equity-based and contractual. The joint-venture agreement signed by Air France and Delta Air Lines is of the second type. This agreement of cooperation designates a partnership designed to share tasks, costs and revenue, without a financial stake. Each company participating in the JV assumes the same risks, obligations and investments, with as their ultimate goal that of optimizing profit.
An agreement, signed by all the relevant partners, stipulating the basic rules of the partnership, the objectives, the necessary resources and the duration of the partnership is the basis of a JV.


![[Translate to english:] 300 [Translate to english:] 3213 x 2336](typo3temp/pics/91b4740c29.jpg)
![[Translate to english:] 300 [Translate to english:] 3094 x 2027](typo3temp/pics/5961cbf69d.jpg)






![[Translate to english:] 300 [Translate to english:] 3504 x 2332](typo3temp/pics/3ed0f784ee.jpg)

