Delta airline and Air France KLM established a joint venture that includes revenue sharing, cost sharing and intercontinental routes between two airlines. This joint venture was successful in early days and its sales were more than 12 billion Euros in 2011. As author said the purpose of this case is discussion in class room rather than examining its benefit and loss so this case examined the airline industry. Especially this case discussed the joint venture and Alliances that occurred in past between the different airlines. In this case Delta airlines and Air France KLM discussed about its joint venture, policies, procedures and operation. But Air France KLM and Delta airlines faced some issues and conflicts over the time. Detail of case is discussed as follows. This case was written by Pierre Dosage and Ulrich Washer of John Molson Schools of business in Concordia University. Airlines industry was tremendously change in last 24 years and especially during 1990 to 2010 many alliances in airline industry was occurred. A first airline alliance was established in 1930 between pan American Grace and Latin America. That alliance was simple and limited but with the passage of time alliances become complex and diversified and many airlines alliances occurred afterwards.
Alliances occurred in different categorize according to the need and relation of airlines with each other's. First alliance category was code sharing agreements whereas airlines allowed each other's passengers on corresponding flights. If any passenger misses his flight at certain airline, that airline facilitate its customer to travel through their ally airline.it also share the connecting flight through code sharing so they can attract more passengers through ally airlines. Second alliance category is block seat agreement whereas ally airline purchase the seats of each other's airline .third one is free