The Delta-Virgin joint venture: What the numbers show

ICF was a key advisor to Virgin in network planning and scheduling matters before and during negotiation of the Joint Venture (JV). We have simulated Virgin’s network with and without the JV under different scenarios with our proprietary traffic flow simulation tool. This ex-ante modelling gave Virgin an independent view of their plans. Testing different concepts through scenarios helped refine the strategy and the details of the JV.

Now, several years later, we evaluate the impact and results of this JV.

The Delta–Virgin JV proved successful and made a substantial contribution to Virgin Atlantic’s overall financial recovery. The combination of the JV and Delta’s shareholding in Virgin Atlantic essentially turned Virgin Atlantic into a semi-independent affiliate of Delta, and focused Virgin’s plans back onto the North Atlantic opportunities it was set up to exploit rather than on seeking greater network presence and feed at Heathrow.