Korean Air and Delta Air Lines on Saturday finalized an agreement to set up a joint venture for Pacific routes, according to Korean Air.

The joint venture will not take the form of a separate corporation, but the two carriers will operate Pacific routes together, sharing both costs and profits.

Korean Air and Delta will rearrange their route schedules in the Pacific to allow for a more organic network between 290 cities in the Americas and 80 cities in Asia.

Hanjin Group Chairman Cho Yang-ho, Korean Air President Cho Won-tae, and Delta Air Lines CEO Ed Bastian attended a ceremony at the Wilshire Grand Center in Los Angeles to commemorate the agreement.

“The joint venture between the two companies will greatly increase benefits for passengers including a more convenient connecting flight schedule,” Chairman Cho said. 

“By increasing transfer demand at Incheon Airport in step with the opening of the airport’s second terminal at the end of the year, we expect to be able to contribute to Incheon Airport’s competitiveness as a hub airport as well as to the development of Korea’s airline industry.”

If government permission is obtained, the airlines will expand joint sales and marketing in Asia and the US, rearrange and share facilities at major hub airports, and strengthen cooperation in cargo by making use of belly cargo space, according to Korean Air. 

By Won Ho-jung (hjwon@heraldcorp.com)