Delta and WestJet joint venture approved

Editorial

The US Department of Transportation (DOT) has provisionally approved the proposed joint venture between Delta Air Lines and its Canadian industry peer WestJet. There are some conditions attached to the collaboration.

Delta and WestJet announced at the end of 2017 that they had entered into a deal to set up a joint venture for flights between the United States and Canada. Both airlines want to coordinate flight schedules and fares, expand the existing codeshare cooperation and open new routes.

In principle, the DOT agrees with the collaboration, but does attach some conditions to it. For example, Swoop, WestJet’s budget subsidiary, may not be part of the deal. In addition, WestJet must give up sixteen slots at LaGuardia Airport near New York, in order to avoid a monopoly between New York and Toronto and to allow for competition.

Competitors still have three weeks to object before the DOT officially approves.

Delta Air Lines currently has several joint ventures. For example, the airline cooperates closely with Aeromexico, Korean Air and Air France-KLM.

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