Delta Air Lines (DAL) - Get Report and China Eastern Airlines (CEA) - Get Report each purchased 10% of Air France KLM (AFLYY) as Air France agreed to purchase the Virgin Group's 31% stake in Virgin Atlantic, Business Insider reported.
Delta already owns a $360 million, 49% stake in Virgin Atlantic Airways and a $450 million, 3.55% share of China Eastern Airlines. Air France paid $287 million for its recently acquired Virgin Atlantic stake. The new business deals mean all four airlines will work together.
The intermingling deal will create a mutual joint venture connecting all trans-Atlantic mega hubs, including New York City, Atlanta, London, Amsterdam and Paris.
Delta stock traded down about 1%, Air France stock traded up over 2% and China Eastern stock traded up nearly 1% midday.
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