US denies anti-trust immunity to Delta-Virgin Blue scheme

THE US Department of Transportation (DOT) has rejected an application for antitrust immunity on a joint US/Australia service by Delta Air Lines and Australia's Virgin Blue Group, citing a lack of public benefit in reduced pricing and increased seats.

The DOT ruled that the companies "have no experience as commercial partners and employ business processes that they admit are not compatible," to merit a grant of antitrust immunity, linking reservations systems and identifying markets to codeshare, said a report from Huffington Post.

In response, Atlanta-based Delta said the coordination of flights between the countries would increase direct services, now dominated by United and Qantas, and be "good for consumers".

Virgin Blue Group, which consists of V Australia, Virgin Blue and Pacific Blue Airlines is quarter owned by Sir Richard Branson's Virgin Group, had yet to respond to the government's objections.
(Source:www.schednet.com)