Air France-KLM, Delta Tie-up To Reap $12B Annually

What it means for customers is seamless booking and more access to frequent flier upgrades and other redemption opportunities, according to Delta Chief Executive Richard Anderson, who spoke to reporters at a news conference in Paris that was broadcast on the Internet.

For example, a customer in San Francisco wanting to fly to Paris can book a nonstop flight on Delta's Web site. The flight would be operated by Air France. At the airport, the customer would check in with Delta. SkyMiles, Delta's frequent flier program, would be earned for the flight.

The airlines said they will coordinate branding at airports and global advertising.

An executive committee consisting of the carriers' CEOs and a management committee comprising representatives from the carriers will work together on strategy.

Talton said the joint venture is expected to create significant synergies through consolidation of commercial efforts and operational functions. She could not say how much the airlines expect to save. Talton said there are no plans to make changes to employee staffing levels as a result of the initiative.

The joint venture represents approximately 25 percent of total trans-Atlantic capacity.