Virgin Australia welcomes DOT's proposed approval of antitrust immunity with Delta

BRISBANE, 11 May 2011: Virgin Australia Airlines (ASX:VBA) today welcomed the U.S. Department of Transportation’s (DOT’s) proposal to grant antitrust immunity (ATI) to its proposed joint venture with Delta Air Lines on the trans pacific route.

Receiving ATI is a key component of an integrated alliance between Delta and Virgin Australia Airlines, enabling the two airlines to provide guests with an expanded network of destinations, seamless connections, a more convenient flight schedule and more opportunities to earn frequent flyer points and access lounges.

Under the joint venture, the airlines will collaborate on route, schedule and product planning, codesharing on their respective networks, and provide frequent flyer program benefits and lounge access to customers of both carriers.

Virgin Australia Airlines CEO John Borghetti said: “We welcome the Department of Transportation’s proposed approval of our application for antitrust immunity with Delta, following the detailed review that was conducted. Antitrust immunity will enable Virgin Australia and Delta to deliver a more attractive and competitive service for travellers in Australia and North America.”

“The Delta alliance is a key plank in Virgin Australia’s strategy to build an international network of airline partners that offers global coverage. Guests on our award-winning international airline V Australia will be able to connect seamlessly to Delta’s extensive network of over 200 destinations in North America, including Canada and Mexico, and earn frequent flyer points in the process.

“The alliance will also be very positive for tourism in Australia, as there will be a clear incentive for both Delta and Virgin Australia to promote their product to a whole range of additional cities in the United States, Canada and Mexico”, Mr Borghetti said.

Delta Air Lines CEO Richard Anderson said: "Delta’s relationship with Virgin Australia will be extraordinarily enhanced thanks to the DOT decision, which opens the doors to an expanded network that will make travel between and within the U.S. and Australia easier and more convenient for our customers.

“Both airlines worked very hard to provide the DOT with the required documentation, and we applaud their interest and attention during this process”, Mr Anderson said.

The DOT is expected to make its final ruling following public comments on the proposal. If final approval is granted, the airlines will move quickly to implement the joint venture.