Delta Air Lines and WestJet have decided to scrap their proposed Canada-United States joint venture after the U.S. government demanded changes they said were “unreasonable and unacceptable," according to a report published by Reuters.
The news, announced late Friday night, (Nov 20), comes nearly one month after the U.S. Department of Transportation tentatively approved an alliance agreement between the two carriers.
The intention of the two airlines was to co-ordinate their services and network planning and set prices for flights between Canada and the U.S. with the hope of providing more options for travellers.
One condition of the approval was WestJet removing its discount carrier, Swoop, from the alliance, as well as selling 16 slots at New York's LaGuardia Airport.
In a filing, Atlanta-based Delta and Calgary-based WestJet said that the U.S. demands were “arbitrary and capricious."
The airlines also 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," reported Reuters.
Canada's Competition Bureau approved WestJet and Delta's joint venture in 2019.
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