This is a great deal. Does it mean that Delta could drop or reduce their plans to fly the pacific route? Can't see why they would go to the expense at the moment - you would think that they may settle for the on-traffic from V Australia into the US domestic market. That would be more of mutual benefit than signing an agreement like this and then competing with each other across the Pacific. Am I missing something?
March 23, 2009 - 5:24PM Virgin Blue's international airline V Australia and Delta Air Lines, the world's largest carrier, have signed an Australia-US interline agreement.
An interline agreement is where one airline can carry passengers or freight on behalf of another airline.
Virgin Blue said the agreement, effective immediately, allows travellers to purchase a single ticket from V Australia or Delta for travel on the networks of each carrier.
Virgin shares soared on the news, rising as much as 15%. They closed 2.5 cents, or 12.8%, higher at 22 cents.
Delta is the world's largest airline and the second largest domestic US carrier.
It operates a vast domestic network in the US, including major destinations such as New York City, Washington DC, Orlando, Salt Lake City and Atlanta.
Delta will begin a daily nonstop services on the Sydney to Los Angeles route from July 1.
V Australia commenced flying between Los Angeles and Sydney on February 27.
It will commence direct flights from Los Angeles to Brisbane on April 8 and will also commence services from Los Angeles to Melbourne in September.
VBA Price at posting:
18.6¢ Sentiment: LT Buy Disclosure: Held
