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Tuesday, December 11, 2012

Delta buys 49 percent Virgin Atlantic stake for $360 mln, (NYSE: DAL)

U.S. carrier Delta Air Lines said it had bought Singapore Airlines' 49 percent stake in Britain's Virgin Atlantic for $360 million and agreed a transatlantic joint venture with Virgin. Virgin and Delta on Tuesday said under the joint venture they would share costs and revenues on routes between Britain and North America.The pair plan to cooperate on services between New York and London, with a total of nine daily round-trip flights from London Heathrow to John F. Kennedy International Airport and Newark Liberty International Airport."Our new partnership with Virgin Atlantic will strengthen both airlines and provide a more effective competitor between North America and the U.K., particularly on the New York-London route, which is the largest airline route between the U.S. and Europe," said Delta Chief Executive Richard Anderson.The airlines said they would file an application with the U.S. Department of Transportation for competition clearance and that the deal would need to be reviewed by the U.S. Department of Justice and the European Union's competition regulator.

Delta Air Lines, Inc. (Delta) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. Shares of DAL remained unchanged at $10.14. In the past year, the shares have traded as low as $7.83 and as high as $12.25. On average, 9658090 shares of DAL exchange hands on a given day and today's volume is recorded at 4680.