On Thursday, both China Eastern Airlines (SHA:$600115) and Delta Airlines (NYSE:$DAL) announced a 10% investment in Air France-KLM (OTC:$AFLYY), sparking the beginnings of a mega deal.

The stakes that Delta and China Eastern have purchased come in the form of new share issuances reflected from the company’s capital increases valued at $875 million.

Additionally, in a deal valued at $287 million, Air France – KLM has agreed to buy a 31% stake in Virgin Atlantic Airways from Sir Richard Branson’s Virgin Group.

Despite a 31% change in ownership stake, Branson confirmed after the deal that he will still remain as the largest individual investor of Virgin Atlantic Airways.

Delta CEO Ed Bastian chimed in:

“A dynamic global landscape means it’s more important than ever for Delta to deepen ties with our global partners to provide opportunities for mutual growth. Bringing together the strengths of Delta, Air France-KLM, and Virgin Atlantic into a combined joint venture will create the trans-Atlantic partnership of choice for customers.”

Forming one of the largest carriers in Europe, Air France – KLM was actually the product of a merger between the national airlines of France and the Netherlands back in 2004.

“Delta is the first major US carrier to understand that the international airline market is not about today, but about the strategic investments in the future,” Airways senior business analyst Vinay Bhaskara told Business Insider.

Overall, Bhaskara believes the deal is beneficial for all included parties, as this joint venture would consist of players in the airline industry with dominant presence in mega hubs in the Trans Atlantic. Such hubs include New York, Atlanta, London, Amsterdam, and Paris.

In a deal worth about $360 million at the time, Delta had acquired 49% of Virgin Atlantic Airways from Singapore Airlines.

In 2015, Delta also paid $450 million for a 3.2% stake in China Eastern Airlines.

Last week also marked the official launch of Joon, a boutique airline targeting millennials. With those efforts, Air France hopes it will be better poised for global competition.

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