Delta, WestJet scrap planned joint venture after US demands

Delta and Canada's WestJet said late on Friday they had scrapped a proposed US-Canada joint venture after the US government demanded changes the airlines insisted were "unreasonable and unacceptable". Last month, the US DoT as part of its tentative antitrust immunity approval said 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 airlines said in a filing that the US demands were “arbitrary and capricious” especially the slot divestitures. They had argued the alliance would “optimize aircraft utilization, enhance schedules, and lower costs.” The airlines said they remain committed to developing a joint venture “but in the meantime will explore deepening the alliance.” The Delta-WestJet joint venture would have had a combined 27% share of scheduled air carrier transborder capacity, while Air Canada has 45%.<br/>