LCCs make LaGuardia a battleground in proposed Delta-WestJet JV
It has been close to six months since Delta Air Lines and WestJet received the green light from Canadian regulators for their proposed immunised transborder joint venture (JV). The US government has not yet approved the tie-up, but Delta is confident of gaining the blessing from US regulators in 1H2020.
However, it is still unclear what stipulations US regulators will place on Delta and WestJet in order for the operators to move forward in establishing their JV. US low cost airlines have stepped forward with varying recommendations, ranging from a divestment of WestJet's slots at New York LaGuardia airport to an outright rejection of the deal.
Recent precedent would indicate that some sort of contingencies are likely to be required by the US DoT for Delta and WestJet to move forward with the JV; but it will come down to how much credence the agency will give to the arguments put forward by critics of the proposed tie-up.
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