The U.S. Transportation Department has tentatively approved the cross-border alliance between Delta Air Lines and Canada’s WestJet, but they will have to make concessions.
To get the green light, WestJet will have to remove its low cost subsidiary Swoop from the joint venture and the airlines will have to give up 16 slots at New York LaGuardia Airport.
Delta has a 45% market share at LaGuardia.
The DOT also said WestJet should give interline access to select carriers flying to Canada.
The carriers are reviewing the decision ‘and will respond’ said WestJet owner Onex Corp.
If ratified, the alliance would have a 27% market share on US-Canada routes, behind Air Canada which has 45%.
The US-Canada market represents about 39 million cross-border trips a year.
However the DOT says competition is relatively weak compared to the US-Mexico cross-border market.
Canada’s Competition Bureau approved the joint venture last year.
Written by Ray Montgomery, US Editor
