DOT might let Delta, Northwest combine transatlantic alliances
The U.S. Department of Transportation will propose letting Delta Air Lines and Northwest Airlines, along with four overseas carriers, combine their transatlantic alliances.
The DOT on Wednesday issued a show-cause order that tentatively will grant antitrust immunity to the combination. That would allow the airlines to coordinate their services and act as a single carrier for their U.S.-Europe business.
Delta (NYSE: DAL) has an alliance with Air France, Alitalia and Czech Airlines, and Northwest (NYSE: NWA) has an alliance with KLM Royal Dutch Airlines.
The combination is a highly integrated joint venture that likely would produce efficiencies and give customers more fare and route options, the DOT said in a news release payday loans.
Atlanta-based Delta and Eagan, Minn.-based Northwest first proposed the deal in 2004. The two airlines also reportedly have gone back into merger discussions, which were derailed by the inability of their pilots to agree on seniority issues.
Delta operates a hub at the Cincinnati/Northern Kentucky International Airport.