DOJ Trial NOV. 25 US/AA

[BILL LUMBERG]

Delta, Virgin Atlantic Secure Initial Antitrust Approval for Trans-Atlantic Joint Venture


By DOUG CAMERON CONNECT
Delta Air Lines Inc. DAL +0.46% on Friday secured tentative approval for its planned trans-Atlantic alliance with Virgin Atlantic Airways Ltd. after U.S. officials concluded in would likely boost competition.

The U.S. Department of Transportation signaled the pact would be granted antitrust immunity, allowing the two airlines to combine schedules, marketing and revenue from their trans-Atlantic flights.

The application was closely watched as it could have a bearing on any effort by the parent of American Airlines to draw US Airways Group Inc. LCC +1.25% into its existing trans-Atlantic partnership if the two merger partners manage to overcome opposition to the proposed deal from the U.S. Justice Department.

The Virgin deal cements Delta's position as the largest airline on trans-Atlantic routes, and closes the gap with the existing partnership between British Airways IAG.MC -2.10% and the American Airlines unit of AMR Corp. AAMRQ +4.42% on flights between London's Heathrow and New York's John F. Kennedy airports, a rich source of profitable business traffic.

Delta and Virgin estimate their joint venture—due to launch in the first quarter of 2014—will generate around $3 billion a year in revenue.

The U.S. Transportation Department said in a filing that Delta and Virgin's partnership would "create a strong, competitive counterweight" to the Oneworld pact on trans-Atlantic flights involving BA, American and Spain's Iberia, which already has antitrust immunity.

Oneworld members control 55% of the New York to London market, according to the Department of Transportation, and an immunized Delta-Virgin would have 32%.

The bulk of Virgin's flying is to the U.S. and the Caribbean, but the airline also operates to Tokyo, Shanghai, Hong Kong and Sydney, as well as two cities in India, four in Africa and Dubai.

Delta and Virgin plan to operate as a stand-alone joint venture, with flights run by their partners in the SkyTeam marketing alliance—including Air France-KLM SA and Alitalia SpA—pooling their trans-Atlantic operations in a separate entity.

Virgin is also expected to establish separate pacts with other SkyTeam members, though it has yet to decide whether it will join the alliance.

This crap wasn't bragged about in public by a grandstanding drunk CEO like somebody else I know.

Good news the AAmerger is back on speed. This was just a bump in the road.

 

[ERfly]

This crap wasn't bragged about in public by a grandstanding drunk CEO like somebody else I know.

Good news the AAmerger is back on speed. This was just a bump in the road.

We forgot. Delta can do no wrong. Forgive us, please.


Sent from my iPad using Tapatalk - now Free

 

[BILL LUMBERG]

I never said that....

Sorry about your hard feelings Doogie Parker...is that you???

 

[Draginass]

Just one more indication of a corrupt, incompetent, and comically arrogant White House and so-called "Justice" department. That nitwit Holder knows he's going to lose.