US Department of Transportation (DOT) has granted antitrust immunity (ATI) so that Delta and Northwest can combine transatlantic operations with SkyTeam partners Air France, Alitalia, Czech Airlines (CSA) and KLM Royal Dutch.
Coordination of fares, services and capacity is allowed ” ”as if they were a single carrier” - in these markets, said a DOT statement, subject to certain conditions.
The decision does not affect the Delta-Northwest merger, which is subject to a separate antitrust review by the US Department of Justice.
”DOT concluded that the proposed alliance is in the public interest because it features a proposed new and highly integrated joint venture that will likely produce efficiencies and provide consumers with additional price and service options,” read the Department”s statement.
Northwest president and CEO Doug Steenland said: ”The big winners today are the customers we mutually serve. This enhanced ability to coordinate among the carriers will provide a more positive, seamless experience for our customers with single-ticketing, seamless baggage handling, and greater customer ease and convenience. It is also good news in light of skyrocketing fuel costs.”
The carriers must fully implement the proposed alliance within 18 months as a condition of retaining immunity ” and no doubt they will. This is the first ATI granted since the transatlantic market was liberalised, and the battle for passengers has never been fiercer - capacity between Heathrow and the US has shot up since March, and next month British Airways” subsidiary OpenSkies begins flying between Paris and New York.
Steenland added, ”Today”s ATI order, and the Northwest-Delta merger, will strengthen and stabilise the combined carrier and make it a more effective competitor.”
” A redevelopment of Terminals 2 and 3 at JFK airoprt has been approved by the Port Authority of New York and New Jersey - both are operated by Delta, and handle more than 9m of JFK”s 48m annual travellers.
British Airways has also announced a $30m, 18-month project to enhance premium ground facilities at its JFK terminal ” this will include building a new check-in pavilion for First Class passengers, and renovating the First and Concorde Lounges to similar specs as those at Heathrow T5.