V Australia signs deal with Delta 

Source: ONE News

Virgin Blue's new international carrier V Australia has teamed up with Delta Airlines to connect their networks, strengthening its position against Qantas on the Australia to Los Angeles route.

The interline agreement signed between V Australia and Delta, the world's largest airline, allows passengers to travel on a single ticket on the two airlines between Australia and the US.

"We are giving them access to our network and they're giving us access to their network," Virgin Blue general manager sales Mathias Friess says. "That allows both parties to better compete with everyone else."

The news sent shares in Virgin Blue Holdings Ltd up 12.82%, or 2.5 cents, to close at 22 cents on Monday.

V Australia competes with Qantas, which works with American Airlines as part of the Oneworld alliance, and United Airlines on the Australia to US route.

Delta, which recently merged with Northwest, will begin a daily nonstop services on the Sydney to Los Angeles route from July 1.

Mr Freiss says the tie-up with Delta will enable V Australia to offer flights from every point from which Virgin Blue operates to all the key US markets.

"The biggest benefit of the agreement is that it lets us have prices that we can add to our own market," he says. "We can have a price point, if we choose to, from every point in Australia where Virgin Blue flies to every city in North America (where Delta flies)."

Mr Freiss says Delta serves about 70 non-stop markets out of LA.

V Australia commenced flying between LA and Sydney on February 27 and will commence direct flights from LA to Brisbane on April 8 and from LA to Melbourne in September.

An interline agreement is where one airline can carry passengers or freight on behalf of another airline and also enables luggage to be checked through from point of origin to destination.