Virgin Blue Holdings and Delta Air Lines plan to form a joint venture that will expand each carrier's reach between the US and Australia and across the South Pacific, the Wall Street Journal reported.
In a move that could put further pressure on Qantas Airways, the airlines said the alliance will allow both to compete more effectively in those markets.
Previously, Australia-US routes were flown only by Qantas and UAL Corporation's United Airlines.
The two airlines said they will lodge applications for the venture with the US Transportation Department and the Australian Competition and Consumer Commission.
Cargo News Asia