U.S. tentatively approves Delta, WestJet alliance.
The U.S. Transportation Department said on Friday it had tentatively approved a proposed alliance agreement between Delta Air Lines and Canada’s WestJet that is expected to expand travel options between the United States and Canada.
See also: Airbus delivers the first A220 assembled in the U.S. to Delta.
The department said as part of its tentative antitrust immunity approval it would require the carriers to remove Swoop, an ultra low-cost carrier affiliate of WestJet, from the alliance, and divest 16 takeoff and landing slots at New York’s LaGuardia Airport, Reuters reported.
See also: WestJet announces flights between Vancouver and Toronto operated by the Dreamliner.
The department also proposes to require WestJet to provide interline access to select carriers flying to Canada, and to review the proposed alliance in five years. Interline agreements allow consumers to fly to destinations using both airlines.
The Delta-WestJet joint venture would have a combined 27%share of scheduled air carrier transborder capacity, while the dominant carrier, Air Canada, would have 45%.
The carriers said the proposed alliance “would optimize aircraft utilization, enhance schedules, and lower costs.”
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