Korean Air (KE, Seoul Incheon) and Delta Air Lines (DL, Atlanta Hartsfield Jackson) have announced they have signed a Memorandum of Understanding (MOU) to expand their existing partnership through the implementation of a joint venture arrangement.
According to a joint communique issued on Wednesday, March 29, the MOU sets out to create a fully integrated trans-Pacific joint venture arrangement, with both airlines sharing costs and revenues on flights while coordinating schedules for seamless, convenient connections. It also seeks to develop a combined network, serving more than 290 destinations in the Americas and more than eighty in Asia, providing customers of both airlines with more travel choices than ever before. Lastly, the agreement, once finalized, will allow for 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.
Once a final joint venture arrangement has been signed and all relevant regulatory hurdles have been cleared, Delta and Korean Air will work together to implement all aspects of the deal including expanded codesharing, frequent flyer program cooperation, and joint growth in the trans-Pacific market, with co-location at key hubs to enable a seamless passenger and baggage transit process.
“This Joint Venture will benefit our customers by providing more convenient connection schedules and widen their opportunities in earning mileages,” Korean Air’s Chairman and CEO, Yang Ho Cho, said. “With this agreement, we will reinforce Incheon airport’s position as a major international hub in North East Asia and support the growth of Korea’s aviation industry.”
This summer, Delta will launch a new nonstop service between Atlanta Hartsfield Jackson and Seoul Incheon in June while at the same time, Korean Air will expand its US–Korea network with the introduction of a third daily return service between Los Angeles International and Seoul. It will also boost its existing San Francisco-Seoul route with a second daily flight.
