Delta Air Lines and WestJet apply to DoT for approval of antitrust immunity

Delta Air Lines and WestJet applied (11-Oct-2018) to the US Department of Transportation (DoT) for a joint application for approval of an antitrust immunity for a proposed alliance involving US-Canada transborder services under a JV agreement. Both airlines have entered into a metal neutral JV agreement to integrate passenger services between the US and Canada. Delta and WestJet expect the JV to produce the following highlights:

• Produce more than USD241 million in annual consumer benefits;
• Create a metal neutral network covering all nonstop services between the US and Canada;
• Create a seamless and integrated Delta/WestJet network linking over 8100 US-Canada city pairs;
• Increase transborder capacity on the combined Delta/WestJet network by over 20%;
• New or expanded service on 20 nonstop routes and the expected addition of approximately six new, JV-enabled nonstop US-Canada services over the next five years;
• Create a second joint network with sufficient critical mass to offer an alternative to the United Airlines/Air Canada immunised transborder route network;
• Optimise connectivity over the Delta/WestJet hub networks and improve service and consumer choice on the largest and most important US-Canada routes: New York-Toronto, Chicago-Toronto, Los Angeles-Vancouver and Los Angeles-Toronto;
• Offer lower fares and more convenient service options by jointly setting fares and managing seat inventory on JV routes;
• Leveraging schedule and aircraft efficiencies to launch additional transborder frequencies during slower demand hours;
• Implement a more effective and efficient joint sales force and increase their ability to compete more effectively for corporate accounts and agency business;
• Create efficiencies improving the customer experience and lowering costs, including co-locating airport operations when and where possible. [more - original PR]