Travel options to and from Canada could see an increase after the US Department of Transportation tentatively approved an alliance agreement between WestJet Airlines and Delta Air Lines. One condition of approval is the removal of WestJet discount carrier Swoop from the alliance.
The DoT said Friday it has tentatively approved plans by the two carriers to work together in scheduling and setting prices for flights between the US and Canada.
The department plans to grant the airlines immunity from antitrust laws, which would normally prevent competitors from working together so closely. It said the joint venture will increase options for travel between the two countries.
Canada’s Competition Bureau approved the joint venture last summer, which will allow the two airlines to work together in scheduling and setting prices for flights between Canada and the US.
But it’s not immediately clear yet whether the US government’s conditions will be acceptable to the airlines.
In addition to excising Swoop from the deal, the Trump administration proposes that WestJet sell 16 slots at New York’s LaGuardia Airport.
A WestJet spokeswoman said the airlines would respond to the Transportation Department. A Delta spokesman said the Atlanta-based airline was reviewing the proposal and had no further comment.
The joint venture would expand a codeshare agreement between the two airlines that goes back several years. The airlines have said the deal will include new nonstop flights to new destinations and better reciprocal benefits for members of their frequent-flyer programs.
Delta has other joint ventures with foreign airlines including Virgin Atlantic, Korean Air, Air France-KLM and Aeromexico.
The Transportation Department said it will review the Delta-WestJet venture in five years.