Skyteam members Korean Air (KE, Seoul Incheon) and Delta Air Lines (DL, Atlanta Hartsfield Jackson) are in talks to establish a joint venture, reports Bloomberg. Their strengthened alliance could make them a significant player in the trans-Pacific region.
The two airlines already have a codeshare agreement which was further expanded in September 2016 to include routes to a total of 142 destinations in the US, Canada and Brazil, and 33 destinations in South Korea, Taiwan, Singapore, and Japan. At that time, Delta CEO Ed Bastian had indicated that the agreement "could lead to deeper relationship", signaling this week's JV news.
The joint venture was announced at a briefing at Incheon, Seoul, with Korean Airlines president Walter Cho telling reporters that more information will be forthcoming.
The US Department of Commerce forecasts that visitor numbers from South Korea to the United States will increase by 43% in the period 2016-2021 and is expected to move from eighth to sixth position in terms of visitor countries of origin. South Korea meanwhile is gearing up to host the Winter Olympics in 2018, which will lead to an injection of tourists.
As announced last year, Delta is planning to launch a daily Atlanta Hartsfield Jackson - Seoul Incheon service in June using B777-200(LR) equipment.
