December 1, 2020

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Delta and WestJet’s joint venture was approved subject to certain conditions

Delta and WestJet's joint venture was approved subject to certain conditions

Delta and WestJet announced in late 2017 that they had signed a contract to establish a joint venture for flights between the United States and Canada. Both airlines want to coordinate flight schedules and tariffs, expand the existing codeshare cooperation and open up new routes.

In principle, the DOT agrees to the cooperation, but brings with it some conditions. For example, Swoop, WestJet’s budget subsidiary, may not be part of the deal. In addition, WestJet must give up 16 slots at LaGuardia Airport near New York to avoid a monopoly between New York and Toronto and allow competition.

Competitors have another three weeks to file an objection before the DOT reaches a final agreement.

Delta Air Lines currently has several joint ventures. For example, there is close cooperation with Aeromexico, Korean Air and Air France-KLM.