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Impact of Joint Venture Agreements between European and US Airlines.

October 22, 2007

Analysis of:Air France-KLM, Delta form joint venture | www.businessweek.com

1. The new open skies agreement on Airlines Services between the United States and Euope will provide European Carriers greater access to Domesctic US markets. The European Carriers will take advantage of a lower US Dollar compare to the Euro to gain more revenue from advertising a cheap fare to US. 2. Delta must gain more markets in Europe and beyond in order to share in the increaing revenue of this joint venture. Future joint venture must negoiate the beyond Europe markets that has been bloked by European Airlines. 3. The competition will allow the consumer to benefit from low fare as long as there is no price fixing and price increase initiatives that start with one gruop and followed by others.

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