Delta Air, Riyadh Air unveil strategic partnership (updated)

LATAM Airlines

09/07/2024 20:52

(Repeats to more subscribers, no changes)
    By Rajesh Kumar Singh
       CHICAGO, July 9 (Reuters) - Riyadh Air has partnered
with U.S. carrier Delta Air Lines  DAL.N  as the Saudi startup
carrier grows its potential network ahead of launching
commercial operations next year, the airlines said on Tuesday.
    Riyadh Air, owned by Saudi sovereign wealth fund PIF, will
be a second national airline, based in the capital Riyadh,
alongside existing flag carrier Saudia, based in Jeddah.
    Under the agreement, Atlanta-based Delta will serve as
Riyadh Air's exclusive partner in North America, offering its
customers access to hundreds of U.S. destinations.
    For Delta's customers, the partnership will open new
destinations in Saudi Arabia, the airlines said. The U.S.
carrier also plans to launch future nonstop service to Riyadh.
        Currently, no U.S. airline files to Saudi Arabia.
  
        Delta's first partnership with a Gulf carrier marks a
shift from the last decade when the Atlanta-based airline along
with United  UAL.O  and American Airlines  AAL.O  lobbied to
curb competition from Gulf state carriers.
  
        In 2022, however, United unveiled a codeshare agreement
with Dubai's Emirates. American Airlines has a similar
arrangement with Qatar Airways. 
  
        The tie-up between Delta and Riyadh Air envisions
codesharing, which will allow them to sell seats on each other's
flights, but will require regulatory approvals.
  
        In the future, the two carriers plan to expand the
partnership into a joint venture, allowing collaboration on
network planning. Such an arrangement would require  immunity
from antitrust laws.
  
        Currently, Delta has joint ventures with Air France-KLM
 AIRF.PA , British airline Virgin Atlantic, Chile's LATAM
Airlines  LTM.SN  and Korean Air  003490.KS .
  
    Riyadh Air is trying to build its network through a series
of bilateral partnerships and code shares rather than relying
purely on its own planes, or joining a formal airline alliance.
    Last month, it announced partnerships with Singapore
Airlines  SIAL.SI  and Air China  601111.SS .

 (Reporting by Rajesh Kumar Singh; Editing by David Gregorio)
 ((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370;
Reuters Messaging:
rajeshkumar.singh.thomsonreuters.com@reuters.net))