US tentatively approves Delta, WestJet alliance

The US DoT said Friday it had tentatively approved a proposed alliance agreement between Delta and Canada's WestJet that is expected to expand travel options between the US and Canada. 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. 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%. WestJet welcomed the tentative approval, saying the two carriers are reviewing the order "and will respond." The carriers said the proposed alliance “would optimize aircraft utilization, enhance schedules, and lower costs.”<br/>