Delta, WestJet scrap planned joint venture after U.S. demands

From the Calgary Herald – link to source story

Reuters, Nov 21, 2020

Idled WestJet planes fill an unused runway at the Calgary International Airport on Tuesday, May 5, 2020. PHOTO BY GAVIN YOUNG /Postmedia

WASHINGTON — Delta Air Lines and Canada’s WestJet said late Friday they had scrapped a proposed U.S-Canada joint venture after the U.S. government demanded changes they said were “unreasonable and unacceptable.”

Last month, the Transportation Department 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 U.S. demands were “arbitrary and capricious” especially the slot divestitures.

The airlines added they remain “committed to developing a U.S. – Canada Joint Venture but in the meantime will explore deepening the alliance for the benefit of our mutual guests.” (Reporting by David Shepardson; Editing by Lincoln Feast.)

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