Virgin Atlantic Expanding Services From UK To Cuba; Certified Claimant Delta Air Lines Owns 49% Of Company

Since 2012, Atlanta, Georgia-based Delta Air Lines (2019 revenues approximately US$47 billion) has held a 49% shareholding in London, United Kingdom-based Virgin Atlantic Airways (2019 revenues approximately US$2.8 billion). London, United Kingdom-based Virgin Group (2019 revenues approximately US$20 billion) retains a 51% shareholding.   

Virgin Atlantic Airways operates Boeing 787-9 aircraft from the United Kingdom (London Heathrow and London Gatwick) to the Jose Marti International Airport (HAV) in the Republic of Cuba. 

Virgin Atlantic Airways subsidiary, Virgin Atlantic Cargo (2019 revenues approximately US$287 million), reports shipments to the Republic of Cuba include, but are not limited to, general cargo, pharmaceuticals and life science products. 

In 1994, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury issued an opinion which stated that a United States business or individual subject to United States law may make a secondary market investment in a third-country business which has commercial dealings within the Republic of Cuba provided that the investment does not result in control-in-fact of the third-country business by the United States investor and the third-country company does not derive a majority of its revenues from business activity within the Republic of Cuba.  Secondary market investment that falls short of a controlling interest in such a business is not prohibited. 

On 26 September 2019, Delta Air Lines reported the intention to acquire a 20% shareholding in Santiago, Chile-based LATAM Airlines Group (2019 revenues approximately US$10 billion) which has operated flights to the Republic of Cuba.  Delta Air Lines will become the third-largest shareholder in LATAM Airlines Group. 

Delta Air Lines New Shareholding In LATAM Airlines Group Could Become Complicated With Libertad Act Lawsuit(s): https://www.cubatrade.org/blog/2019/9/27/z02bbqsyp3orcavev7k7gv2r2f8bzm?rq=Delta%20Air%20Lines 

Delta Air Lines has since December 2016 operated regularly-scheduled flights from Atlanta, Georgia, and Miami, Florida, to Havana, Republic of Cuba.  

On 25 September 2019, LATAM Airlines Group and Fort Worth, Texas-based American Airlines Group (2019 revenues approximately US$44 billion) were sued in United States District Court by an individual who claims ownership of HAV.  The law firm representing the plaintiff confirmed that approximately forty-nine (49) other airlines (potentially including Delta Air Lines) may have been notified that they may be subject to litigation.  Link to post:  https://www.cubatrade.org/blog/2019/9/25/rivero-mestre-files-helms-burton-act-lawsuit-against-american-airlines-on-behalf-ofnbsprightful-owner-ofnbspjos-mart-international-airport-seeks-treble-damages 

Delta Air Lines has a certified claim (12 January 1962) for US$212,296.08 (or approximately US$964,278.20 with 6% annual permitted interest) against the Republic of Cuba certified by the United States Foreign Claims Settlement Commission. [Link To Claim].  The landing fees for approximately 3,400 flights paid by Delta Air Lines to HAV for flights since December 2016 have exceeded the value of the certified claim. 

VIRGIN ATLANTIC CARGO TO LAUNCH DAILY HEATHROW-CAPE TOWN FLIGHTS AND EXPAND CAPACITY TO CUBA FROM OCTOBER 2020  

12 February 2020: Virgin Atlantic Cargo will launch a new daily Heathrow-Cape Town service from October 2020 and increase capacity to Cuba as part of their winter flying programme.

As Virgin Atlantic celebrates 24 years of services to South Africa, the introduction of Cape Town flights from Heathrow for the winter season will offer new export and import opportunities for customers already supporting Virgin Atlantic’s existing double daily services from Heathrow to Johannesburg. The 787-9 service will commence on 25th October. South Africa is one of Virgin Atlantic’s most popular cargo routes, attracting regular shipments of pre-packed fruit salads, vegetables, stone fruits and fish as well as car parts, computer and electrical components, mining equipment, pharmaceuticals, books and magazines.  

In March, Johannesburg will also be the first non-US route to begin services with the airline’s new Airbus A350-1000.The VS478 will operate as a night flight departing Heathrow at 16:20 arriving into Cape Town at 05:55 whereas the inbound, the VS479, will depart at 08:00 landing later that day at 18:00. 

Virgin Atlantic will also reinforce its position as the only airline flying directly to Havana from London Heathrow by adding another weekly service to the city. Flights will depart Heathrow every Tuesday, Friday and Sunday on a 787-9 aircraft.  

The winter flying enhancements are in addition to Virgin Atlantic’s new daily services from Heathrow to Sao Paulo, second daily Delhi flights and increased Heathrow-San Francisco flights, which all take-off at the end of March. Virgin Atlantic Cargo is also marketing the cargo capacity of Virgin Australia’s new daily Brisbane-Tokyo Haneda flights, which start on 29 March.  

Dominic Kennedy, Managing Director of Virgin Atlantic Cargo, said: “This year, with the growth of our flying programme and our new expanded joint venture with Air France-KLM and Delta, we’re giving our cargo customers unprecedented access to new markets, new gateways in existing markets and extra frequencies. South Africa is a great cargo market and the addition of Cape Town to our network, alongside the launch of A350 flights on Johannesburg, will increase the choice we can offer our customers in the UK and South Africa as well as those in the US who trade with South Africa via our London hub.  

We are also pleased to be offering more capacity for customers moving goods to and from Havana. 2020 is an exciting year for Virgin and our customers. 

About Virgin Atlantic Cargo: Cargo has been an important part of Virgin Atlantic’s business ever since the airline was founded by entrepreneur Sir Richard Branson 34years ago. Today, the airline carries over 240 million kilos of cargo annually and, with a strong commitment to innovation and customer service at its core, Virgin Atlantic Cargo is recognised as one of the world’s most customer-focused and service-oriented airlines, earning 14 international Cargo Airline of the Year awards.

Headquartered in London, Virgin Atlantic Cargo trades in 37 countries and sells services to destinations in over 60 countries worldwide.

Alongside joint venture partner Delta Cargo, they operate a leading transatlantic network, offering a choice of 38 flights a day between the UK and US which, in 2018, carried over a quarter of total trans-Atlantic air cargo volumes. Virgin Atlantic Cargo is also the long-haul international cargo sales and management partner for Virgin Australia, connecting the two airline’s networks over Los Angeles and Hong Kong.

In 2019, Virgin Atlantic Cargo is also benefiting from the increased cargo payload of the airline’s new Airbus A350-1000 aircraft as well as the launch of new Tel Aviv and Mumbai routes, which commenced in September and October respectively. Investment in new technologies will make the airline even easier to do business with, while in Q4, Virgin Atlantic Cargo and Delta Cargo moved into a new state-of-the-art Export Facility at London Heathrow, part of an expansion to double the size of their joint Heathrow operation.

On May 15, 2018, Air France-KLM, Delta Air Lines and Virgin Atlantic Limited signed definitive agreements to combine the existing trans-Atlantic joint ventures. Closer cooperation between Delta Cargo, Air France KLM Cargo and Virgin Atlantic Cargo across the trans-Atlantic is subject to regulatory approvals and the receipt of anti-trust immunity (ATI) from the US Department of Transportation (DOT). Once ATI is received, the cargo divisions will be able to start working together giving customers more choice across a broad network of passenger flights with joint trucking options and tailored products and services.

For more information, go to virginatlanticcargo.com