September 8, 2010
The US administration proposed on Wednesday to deny a bid by Delta Air Lines and Virgin Blue for an alliance that would include a waiver from US competition laws.
The Transportation Department said in its tentative conclusion that neither company showed how sharing scheduling, pricing and other operational information would benefit consumers.
The decision was a rare rejection of so-called antitrust immunity for airlines to make their relationships more efficient and lucrative.
Regulators said Delta and its partners have only recently entered the US-Australia market and have not shown developed plans to operate as commercial partners and only have limited co-operation on a small number of routes.
Delta and Virgin Blue Group, which includes V Australia, Virgin Blue and Pacific Blue airlines in Australia and New Zealand, have several weeks to try and convince regulators to reverse their decision before it becomes final.
(Reuters)
The US administration proposed on Wednesday to deny a bid by Delta Air Lines and Virgin Blue for an alliance that would include a waiver from US competition laws.
The Transportation Department said in its tentative conclusion that neither company showed how sharing scheduling, pricing and other operational information would benefit consumers.
The decision was a rare rejection of so-called antitrust immunity for airlines to make their relationships more efficient and lucrative.
Regulators said Delta and its partners have only recently entered the US-Australia market and have not shown developed plans to operate as commercial partners and only have limited co-operation on a small number of routes.
Delta and Virgin Blue Group, which includes V Australia, Virgin Blue and Pacific Blue airlines in Australia and New Zealand, have several weeks to try and convince regulators to reverse their decision before it becomes final.
(Reuters)
