Korean Air and Delta are planning a joint venture partnership. (Image: Korean Air)
Just a day after American Airlines announced an equity investment in China Southern Airlines, Delta said it intends to create another transpacific joint venture partnership – this one with Korean Air.
Delta and Korean have been partners in the SkyTeam alliance since its inception two decades ago. And last September, they announced a significant expansion of code-sharing to more routes. That includes putting Delta’s code onto KAL’s San Francisco-Seoul and Houston-Seoul flights, and Korean’s onto the Atlanta-Seoul flights that Delta will start June 3 (Korean already serves that market with its own flight).
But the joint venture – if it wins government approval – goes well beyond that. If they win the requested immunity from antitrust laws, Delta and Korean will be able to coordinate flight schedules and pricing, and share costs and revenues.
Delta said the joint venture will bring “enhanced frequent flyer benefits, providing customers of both airlines the ability to earn and redeem miles on Delta’s Sky Miles and Korean Air’s SKYPASS programs.”
Officials sign a memo of understanding for their new joint venture. (Image: delta)
Once the agreement is approved, the airlines said, they will start working on expanded code-sharing, frequent flyer program integration, “and joint growth in the transpacific market, with co-location at key hubs with seamless passenger and baggage transit experience.”
In addition to Delta’s new ATL-Seoul service, Korean this summer plans to add a third daily Los Angeles-Seoul flight and a second one between San Francisco and Seoul.
Delta is getting to be an old hand at creating joint venture partnerships. It already has transatlantic joint ventures with Virgin Atlantic and Air France-KLM/Alitalia, a transpacific arrangement with Virgin Australia, and it recently won approval for a joint venture with Aeromexico.
The Delta-Korean partnership will cover a combined network of more than 80 destinations in Asia and 290 in the Americas, Delta noted.
ICYMI, see the 25 most recent TravelSkills posts right here
In the market for a new credit card? See our “Credit Card Deals” tab to shop around! It helps us help you.
Don’t miss out! Join the 200,000+ people who read TravelSkills every month! Sign up here for one email-per-day updates!
I purchased my flight via expedia, I guess I didn’t pay close enough attention..c’est la vie…but the price was decent…
It must have said clearly on your flight confirmation “Operated by United Airlines”. They aren’t allowed to hide that. Sorry you had to fly long distance on United, that is rarely a pleasant experience
Ugg… more consolidation, yes I understand the need and the economy for a such a move. Recently I traveled to New Zealand, bought a ticket from Air New Zealand. Think that i would be flying an Air New Zealand plane. Come travel day it turns out I would be flying a United plane, because United and Air New Zealand are using code share and sharing planes. My flight on United was terrible, no audio, mediocre service and food….
Generally when I fly overseas I try to pick an foreign airline since generally they have better service. With all these alliances/code sharing of flights now it’s a crap shoot as far which airline is actually running the flight.
The question is not quite accurate. Korean has always been a real member of SkyTeam. It’s just that KE and DL have not gotten along in the past, so DL has chosen not to award MQMs to KE flyers. That in no way impacts KE’s membership in SkyTeam; DL doesn’t control SkyTeam.
It hasn’t been announced yet, but almost certainly, if the deal goes thru, DL will start awarding full miles to KE flights
I think it is a good move on DL’s part as they need a north Asia hub and not in a communist country where it is very funky as to the information you may be required to share of you customers and employees. A few of my clients have balked at this with trying to establish a base in China. Korean air really doesn’t need DL to be profitable (as airlines go). ICN is my favorite airport in the world (if you have a layover the Grand Hyatt is great though our host might recommend the Best Western right behind it?)
Does this mean that Korean will become a real member of Skyteam? As it stand it’s kind of a joke in terms of earning Delta miles… of course Delta miles are kind of a joke now anyway, so dunno what the new is here 🙂