Korean Air has reached an agreement with Delta Air Lines to create a trans-Pacific joint venture between the US and Asia.

The new arrangement between the two SkyTeam alliance partners marks the latest stage of a decades-old partnership, and will allow the carriers to coordinate their operations and share revenues on routes across the Pacific.

First announced in March when Korean Air and Delta signed a memorandum of understanding, the new joint venture will include expanded codesharing on trans-Pacific routes, joint sales and marketing initiatives in Asia and the US, co-location at key airports with improved passenger and baggage transit processes, and additional frequent flyer benefits.

“Together, Delta and Korean Air are building a world-class partnership that will offer more destinations, outstanding airport facilities and an unmatched customer experience on the trans-Pacific,” said Ed Bastian, Delta’s CEO. “By combining the strengths of our two companies, we are building a stronger airline for our employees, customers and investors.”

Korean Air’s chairman, YH Cho, added; “Now is the right time for this JV. The synergies we’re creating will build stronger and more sustainable companies, and this is good for travellers, our companies and our countries.”

The joint venture will create a combined network serving more than 290 destinations in the Americas and 80 in Asia. The two airlines will also share costs and revenues on flights.

To prepare for the joint venture, Delta recently launched new direct service between Atlanta and Seoul. And later this summer, Korean Air will introduce a third daily flight between Los Angeles and Seoul and a second service between San Francisco and the Korean capital.