US DoT: Delta Air Lines, WestJet withdraw application for proposed US-Canada JV

US Department of Transportation (DoT) received (20-Nov-2020) notice from Delta Air Lines and WestJet, informing of their withdrawal from a proposed JV between the two carriers for US-Canada travel. WestJet and Delta cited this withdrawal as due to the "arbitrary and capricious" conditions set by the DoT, which included the "most onerous" condition that WestJet divest 100% of its slot portfolio at New York LaGuardia Airport (LGA). The parties stated: "The only apparent reason the Department proposes to impose this condition is its tentative determination that allowing WestJet and Delta to retain their LGA slot portfolio while participating in a transborder joint venture would 'exacerbate Delta's dominance at LGA'". Such a determination "ignores the facts" that WestJet would remain the sole holder of its slots, that Delta's share of operations is 45% and less than the share that other hub operators have at other New York hub airports, and that Delta's share of operations at New York airports as a whole is 28%. Other conditions labelled as "capricious" include the required carve out of WestJet's Swoop subsidiary and WestJet's parent from the JV, and the requirement that WestJet interline with all other US airlines besides United Airlines upon request. The DoT is requested to dismiss this proceeding and close the docket. [more - original PR]