US to block Virgin-Delta deal?

Plans by Australia's Virgin Group and the USA's Delta to collaborate on flights between Australia and the US are under threat after the US Transportation Department said it expects to deny their request for antitrust immunity.

Australian authorities approved the proposal in December.

The Transportation Department said the carriers have not shown enough benefits for travellers and that they have virtually no experience as
commercial partners.

They also each employ business processes that are not compatible with processes used by the other.

"They have only just begun to explore the feasibility of arms-length co-operation, much less the degree of co-operation that requires, or would merit, a grant of antitrust immunity," the Department said.

The airlines have two weeks to object.

 

US to block Virgin-Delta deal?

Plans by Australia's Virgin Group and the USA's Delta to collaborate on flights between Australia and the US are under threat after the US Transportation Department said it expects to deny their request for antitrust immunity.

Australian authorities approved the proposal in December.

The Transportation Department said the carriers have not shown enough benefits for travellers and that they have virtually no experience as
commercial partners.

They also each employ business processes that are not compatible with processes used by the other.

"They have only just begun to explore the feasibility of arms-length co-operation, much less the degree of co-operation that requires, or would merit, a grant of antitrust immunity," the Department said.

The airlines have two weeks to object.