WestJet-Delta deal clears Canadian hurdle

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June 28, 2019
Delta
A rendering of the Delta terminal project at New York's La Guardia Airport. Image: Delta

A transborder joint venture between Canada’s WestJet and US carrier  Delta Air Lines has been cleared by the Canadian Competition Bureau as the airlines wait for a decision from US authorities.

The competition bureau issued a no-action letter confirming it would not challenge the joint venture agreement to deepen their existing partnership.

Approval of the deal would see the two expanded codesharing, add reciprocal elite frequent flyer benefits,  co-locate hubs and begin joint sales, marketing and cargo activities.

The chief executives of both airlines were keen to spruik the benefits of the partnership as they announced the Canadian decision.

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“Today’s clearance by the CCB is an important step towards satisfying the conditions necessary to implement the proposed WestJet-Delta transborder joint venture,” WestJet chief executive Ed Sims said.

“We thank the CCB for its timely and thorough review. The joint venture will lead to more consumer choice, connectivity, and economic benefits on both sides of the border by growing U.S.-Canada business and tourism travel.”

Delta chief Ed Bastian said the joint venture would create a world-class experience for people traveling between the US and Canada.

“The joint venture between Delta and WestJet will create an expanded network with more frequencies and destinations, improved airport connections and significantly enhanced frequent flyer benefits,’’ he said.

The proposal is still subject to regulatory approval from the US. Department of Transportation.

Meanwhile, Delta released more details of a new concourse — the first of four — due to open at New York’s LaGuardia Airport in the autumn.

The airline said its spacious 105,000-square-foot concourse would feature floor-to-ceiling views of Citi Field and Flushing Bay, gates that can accommodate a range of aircraft types, and dining options from favorite New York chefs and eateries.

Delta
Images: Delta

Bastian said it was a significant component in more than $US12 billion the airline was investing in airport redevelopment efforts around the country.

Delta

The airline operates more than 275 peak-day departures from La Guardia and began construction of a $US3.9 billion replacement of terminals C and D in 2017.

The completed project will feature 37 gates across four concourses connected by a central check-in lobby, security checkpoint and baggage claim.

The centralized check-in lobby is due to  open in 2021.

There will be larger Delta Sky Club, bigger gate areas, more concessions space and more efficient roadways.

Dual taxiways will also reduce aircraft hold and taxi times.

The Delta project is part of a $US8 billion redevelopment of LeGuardia announced by Governor  Andrew Cuomo in 2015.