Alliance will make Delta stronger

Delta Air Lines Inc.’s blockbuster tie-up with Air France/KLM Group will make the collective carriers stronger in the face of powerful economic headwinds, observers say.

The deal, which the airlines say will generate $12 billion in annual revenue collectively, will add connectivity across the Atlantic throughout the partners’ networks, while freeing up significant capital and aircraft the carriers can use elsewhere, airline analysts say.

The trans-Atlantic alliance between the world’s largest carrier (NYSE: DAL) and Europe’s largest airline group will offer more flight frequencies, better scheduling and more competitive fares as the partners coordinate as a single carrier, the carriers have said. The new partnership represents a quarter of all trans-Atlantic air service and Delta CEO Richard Anderson said in a message to employees the carrier would handle 50 percent of trans-Atlantic service.

The pact includes routes between North America and Europe, North America and Africa, Europe and Latin America (where Delta is particularly strong), and the Middle East and India. Delta is also growing in Africa, and is the only U.S.-flagged carrier to fly to the continent.