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U.S. Tentatively Approves Delta-WestJet Joint Venture

October 26, 2020 / Madhu Unnikrishnan
SHARESHARESHARE

The U.S. Transportation Department (DOT) has tentatively approved a proposed transborder joint venture between Delta Air Lines and Canada’s WestJet, but is requiring the two airlines to divest coveted takeoff and landing slots at New York LaGuardia Airport. The DOT’s order allows Delta and WestJet to embark on a “metal neutral” joint venture, giving them the rights to share revenues and costs and coordinate routes and schedules. Delta has a similar agreement with Aeromexico to the south. The Delta-WestJet joint venture would not harm competition, DOT said, because the two carriers combined would have only 27% of the U.S.-Canada market, versus Air Canada’s 45%.