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Korean Air-Delta JV to launch May 1
April 27th 2018
The Korean Air-Delta Air Lines trans-Pacific joint venture (JV) will come into effect from May 1, according to a notice filed with the U.S. Department of Transportation. Read More »
The JV has been approved by regulators in the U.S. and South Korea for at least ten years, through to 2028.
From May 1, the SkyTeam members will: implement full reciprocal code sharing on each other’s networks; allow customers to earn miles on Korean Air’s SKYPASS programme and Delta’s SkyMiles programme; begin implementation of joint sales and marketing initiatives; and increase belly cargo cooperation across the Pacific.
Earlier this year, Delta and Korean Air co-located into the new Terminal 2 at Seoul’s Incheon International Airport, substantially reducing connecting times for customers. Korean Air rival, Asiana Airlines, does not have a trans-Pacific joint venture with either Air Canada or United Airlines, its Star Alliance partners in North America.
The combined network formed by the joint venture gives Delta and Korean Air passengers access to more than 290 destinations in the Americas and more than 80 in Asia.
South Korea’s Ministry of Land, Infrastructure and Transport (MLIT) added a number of caveats to the fine print of JV both airlines must adhere to.
Korean Air and Delta must not reduce capacity on the five South Korea-U.S. routes they operate without competition. They are Korean Air’s Seoul to Las Vegas and Washington Dulles flights and Delta’s Seoul-Detroit and Seoul-Seattle and Seoul-Atlanta (operated by both airlines).
The partners also must provide annual reports on improvements to customer benefits from the tie-up and any changes in capacity.
“We will closely monitor the reports and check any side effects that could occur on the routes where the two firms have a big market share,” South Korea’s MLIT said.
