Delta Airlines is planning to acquire a 49 per cent stake in Virgin Atlantic that will significantly strengthen its position on the transatlantic route.

The acquisition will result in a partnership that will help Delta expand its foothold on Europe's busiest airport, London's Heathrow Airport where the two might offer more flights. The unavailability of landing slot had impacted the growth of both the airlines earlier. Delta will also be in a better position to attract business travels by competing better with United Continental and American Airlines.

Under the partnership, tow two firms will share costs and revenue on the services between Britain and North America. The two companies will operate 31 round-trip flights between the U. K. and all of North America during high demand season.

Delta Chief Executive Richard Anderson believes that the partnership will benefit from Virgin's strong luxury brand and will be able to generate revenues. He said that the partnership will also benefit Delta's partners like KLM, Air France and Alitalia.

Peter Norris, chairman of Virgin Atlantic Group and Virgin Group Holdings said that the companies had been discussing the deal since two years and the negotiations were intensified during the summer.