News
Korean Air and Delta agree on joint venture
March 31st 2017
‘Good things come to those who wait’ is what Korean Air Lines and Delta Air Lines executives might be thinking after signing a memorandum of understanding to form a trans-Pacific joint venture this week. Read More »
Korean and Delta are both SkyTeam members but their relationship had long been strained, following various altercations over the past decade.
This now appears to be in the past. This week’s JV builds on the carriers’ existing, but limited, codesharing partnership, adding transpacific cost and revenue sharing to the basket. The two carriers will further work toward better schedule and frequent flyer benefit integration on their combined 370-destination-strong network in Asia and the Americas.
"This agreement deepens our longstanding partnership with Korean Air and will provide the global access and seamless service our customers demand," said Delta CEO, Ed Bastian. "We look forward to providing customers of both carriers with industry-leading service between the U.S. and Asia.”
“This joint venture will benefit our customers by providing more convenient connection schedules and widen their opportunities in earning mileage,” said Korean Air’s chairman and CEO, Cho Yang Ho. “With this agreement, we will reinforce Incheon Airport’s position as a major international hub in North East Asia and support the growth of Korea’s aviation industry.”
Delta will be launching a nonstop service between Atlanta and Seoul in June, complementing Korean Air’s existing service. At the same time, Korean Air will introduce a third daily round trip between Los Angeles and Seoul, as well as a second flight between San Francisco and Seoul.
As a result of their hitherto frosty relations, Delta has long been considered the weakest major U.S. carrier in the Asia-Pacific region.
This changed somewhat when Delta took a surprise minority stake in China Eastern Airlines in August 2015, a move mirrored this week by its local rival, American Airlines. American this week confirmed a US$200 million investment in China Southern Airlines, gaining a 2.68% stake in the Guangzhou-based airline.
