Delta Agrees to Buy 49% of Virgin

Throughout most industries, when there are problems or issues with the economy as they are now, companies begin looking to for ways to stay in business. They sometimes even try to expand so that they have a wider range of coverage areas. Recently, Delta Airlines did just that by agreeing to purchase 49% of Virgin Airlines in an attempt to expand their air freight and passenger services and increase their market share. Since this portion was previously owned by Singapore Airlines, this will only be a positive move for Virgin as well as open doors for Delta Airlines.

The hope is that with Virgin Airline’s market share London’s Heathrow Airport will help to bring Delta in to gain market share in the United Kingdom to have a better presence in Europe in general. Heathrow is one of the busiest airports in Europe so Delta has been looking to get into the market to attract more business travelers. Up until now, the majority of the market share has been controlled by American Airlines in its joint venture with British Airways.

Delta has high hopes for this new venture to bring them to 36% of the business in that route compared to their previous 9% according to the Wall Street Journal. In the scheme of things, this will not affect the average passenger or air shipment too much. It will just allow for more competition in the trade lane. This could be a good enterprise for many customers looking for a strong alternative since it will create more competition for their business and possible better rates and services. It will also impact logistics and air freight industries.