Delta Makes a Big Move Into Europe

Last week, Delta Air Lines (NYSE: DAL  ) closed on the acquisition of 49% of British carrier Virgin Atlantic.  By teaming up with Virgin Atlantic, Delta has tripled the number of flights it offers from New York to London's Heathrow Airport.  This is particularly important because the New York-Heathrow route has an exceptionally high proportion of high-paying business travelers.

This deal is part of a broader push by Delta to gain market share in New York, especially among corporate fliers.  Delta was previously a distant third in the New York-London market, behind AMR (UNKNOWN: AAMRQ.DL  ) -- which has a joint venture with British Airways, providing frequent service to Heathrow -- and United Continental (NYSE: UAL  ) , which flies from its Newark hub to Heathrow.  The Virgin Atlantic tie-up levels the playing field for Delta.

In the following video, Motley Fool Industrials bureau chief Isaac Pino talks to contributor Adam Levine-Weinberg about what this deal means for Delta and how it will affect the competition among America's top three airlines.

Profiting from our increasingly global economy can be as easy as investing in your own backyard. The Motley Fool's free report "3 American Companies Set to Dominate the World" shows you how. Click here to get your free copy before it's gone.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2521631, ~/Articles/ArticleHandler.aspx, 11/26/2014 6:47:50 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement