Categories: Aviation

Delta, WestJet Cancel Joint Venture

Saying that demands by the U.S. government for approval of a new alliance were unfair, Delta Air Lines and Canada’s WestJet Airlines have canceled their previously announced plans to develop a joint venture.

The two carriers said in a joint statement that “in the meantime (we) will explore deepening the alliance.”

In July, Delta and WestJet announced a transborder agreement that would enhance their existing codeshare and provide greater options to the 30 routes the two share.

MORE Airlines & Airports

But on Friday, the airlines said that U.S. government demands were “unreasonable and unacceptable,” and issued a joint statement calling off the deal. The Department of Transportation asked the carriers to scuttle Swoop, the 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 U.S. demands were “arbitrary and capricious” especially the slot divestitures. They had argued the alliance would “optimize aircraft utilization, enhance schedules, and lower costs,” according to Fox Business News.

Flights between the U.S. and Canada have grown 15 percent in the last five years, to 39 million seats annually.

Fox News said that U.S. air carriers had urged slot divestitures at LaGuardia, noting American Airlines, Delta and United Air Lines control 83 percent of all slots, with Delta controlling 45 percent of flights. WestJet and Delta said losing slots would deprive them “of critical operating rights at one of the most important strategic hubs in Delta’s global network at a time when Delta is investing billions of dollars of its own capital in a comprehensive facilities improvement project at this airport.”

The airlines said in a joint statement they remain committed to developing a joint venture “but in the meantime will explore deepening the alliance.”

This post was published by our news partner: TravelPulse.com | Article Source
TJS News

TravelPulse.com, part of the travAlliancemedia network of products, is the leading resource for the latest travel news, offers, and videos. Since 2002, TravelPulse.com has been delivering industry news, dynamic video content and important supplier and destination information that have allowed hundreds of thousands of travel agents to succeed. Now, with dedicated consumer content, TravelPulse is once again revolutionizing the way that travel content is consumed.

Recent Posts

Southern Living Idea House 2026 abre sus puertas en Fredericksburg, Texas

La revista Southern Living invita al público a descubrir su Idea House 2026, una espectacular…

5 days ago

Air Canada, United Airlines Expand Transborder Routes for Summer 2027

Air Canada announced Friday that it will launch new transborder routes in partnership with United…

7 days ago

JetBlue’s BlueFirst Is Now on Sale

JetBlue announced Thursday that bookings are open for its new domestic first-class service. BlueFirst is…

1 week ago

Selma Blair Arrested After Attacking Flight Attendants and Trying to Open Plane Door Midflight

Actress Selma Blair was arrested on Sunday after a violent incident aboard a Delta Air…

2 weeks ago

Sailing the Arctic with Atlas Ocean Voyages

  What is it really like to cruise to the Arctic? Join travel expert and…

2 weeks ago

Off The List: What to SKIP and Where TO GO

**Are some of the world's most popular travel destinations actually overrated?** Before you book your…

2 weeks ago