Air France-KLM on Thursday announced plans for over $1 billion of equity transactions with other airlines in what it described as a move to become the European pillar of an enhanced global network.
That move came as Air France-KLM, Delta Air Lines and Virgin Atlantic
signed a provisional agreement to create a single global joint venture between the three carriers, combining two existing transatlantic tie-ups. Air France-KLM also announced plans to deepen a partnership with China Eastern.
Delta and China Eastern
will each acquire a 10 per cent stake in Air France-KLM by subscribing to new shares through capital increases totaling €
751 million, Air France-KLM said in a statement.
The shake-up aims to strengthen partnership between carriers on the North Atlantic, where new low-cost entrants have shaken up the market in the last year. It makes Air France-KLM the second largest shareholder in Virgin Atlantic
after Delta, which owns a 49 per cent stake.