December 11, 2012 - Delta Air Lines (NYSE: DAL) and Virgin Atlantic Airways Ltd. have reached an agreement for a new joint venture that will create an expanded trans-Atlantic network and enhance competition between the U.K. and North America, offering greater benefits for customers traveling on those routes. Cravath, Swaine & Moore LLP represented Delta in connection with this transaction.

As part of this joint venture agreement, Delta will invest $360 million in Virgin Atlantic, acquiring a 49 percent stake currently held by Singapore Airlines. Virgin Group and Sir Richard Branson will retain the majority 51 percent stake and Virgin Atlantic Airways will retain its brand and operating certificate.

The share purchase and the joint venture are expected to be implemented by the end of 2013.

The Cravath team was led by M&A partners Scott A. Barshay and George F. Schoen and included associates O. Keith Hallam and Benjamin G. Joseloff; partners Christine A. Varney and Yonatan Even and associate Margaret T. Segall (antitrust); and partner Lauren Angelilli and associates Andrew Carlon and Stephen R. Severo (tax).