The deal gives advertisers a two-minute window to target Virgin Atlantic passengers before each of the 54 in-flight films and extends Pearl & Dean's cinema advertising business into a new area.
The venture comes ahead of a probable change of ownership for the cinema advertising business. Its parent Scottish Media Group put it up for sale last month and it is valued at around £15m.
According to Pearl & Dean, Virgin's passengers are in a relaxed environment, making them receptive to brand messages, with 70% of them under 45 years old.
Sky has already signed up as the first advertiser in a three-month contract agreed by its media agency MediaCom.
Pearl & Dean's business development director Howard Warren developed the partnership, which involves the sales house sharing revenue with the airline along with the in-flight entertainment system manager Spafax.
Lysette Gauna, head of media at Virgin Atlantic, said: "Everybody loves Pearl & Dean. It's an intrinsic and nostalgic part of going to see a movie and so we're delighted to have that bit of cinema magic around the movies we show."
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .