November 19, 2017
U.S. Regulators Approve Delta & Korean Air Joint Venture

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Airlines are increasingly turning to joint venture agreements to streamline the passenger experience, offer passengers more destinations, and expand the airlines’ global footprint. We’re seeing less interest from Star Alliance, SkyTeam, and Oneworld in admitting new alliance members as there’s not as strong of a value proposition to this as there used to be. Delta, Air France/KLM, and Virgin Atlantic announced a transatlantic joint venture back in July. Delta is building on this success by announcing a new joint venture with Korean Air.

U.S. regulators approved a trans-Pacific joint venture between Delta and Korean Air this weekend. The airlines are still awaiting approval from Korean regulators. Delta says the joint venture will provide customers an enhanced and expanded flight network. The venture would create a combined network of 290 destinations in the Americas and 80 destinations in Asia.

Passengers traveling with Delta or Korean would see new benefits like shared locations at Incheon Airport (ICN), seamless connections, and a better baggage transit experience. The airlines would benefit by sharing costs and revenues and decreasing competition (i.e. higher ticket prices). They could also sell more tickets on each other’s flights.