Delta Air Lines, Inc. (DAL - Free Report) and Korean Air Lines Co., Ltd. have recently signed an agreement to create a leading trans-Pacific joint venture connecting the U.S. and Asia. The joint venture will offer an expanded network, industry-leading products and services plus an enhanced customer experience to boot.
The tie-up will provide customers of both the airlines with a combined network, thus serving more than 290 destinations in the Americas and over 80 in Asia. It will help the carriers to compete effectively in the trans-Pacific market by equipping them with the necessary scale and scope.
Per the terms of agreement, the two airlines will enjoy extended code sharing in the trans-Pacific market, joint sales as well as marketing initiatives in both Asia and the United States besides several other benefits, subject to regulatory approval. The airlines will also share flight-related costs and revenues, falling under the purview of the joint venture.
Of late, Delta has been making efforts to strengthen its Asian presence. To this end, the carrier has recently launched a new nonstop service between Atlanta and Seoul. This, along with the existing Korean Air’s service would deliver the U.S.-based customers with greater access to destinations across Asia.
Zacks Rank &Key Picks
Delta Air Lines currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline space are Air France-KLM SA (AFLYY - Free Report) , Deutsche Lufthansa AG and International Consolidated Airlines Group SA (ICAGY - Free Report) . Each of these sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last three months, shares of Air France-KLM, Deutsche Lufthansa and International Consolidated Airlines have rallied over 67%, 36% and 16%, respectively.
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