ATLANTA, April 9, 2008 – Delta Air Lines (NYSE:DAL) today applauded the U.S. Department of Transportation (DOT)'s Show Cause Order and decision to approve antitrust immunity for six-way alliance activities in trans-Atlantic markets for the SkyTeam carriers of Air France, Alitalia, CSA Czech Airlines, Delta, KLM Royal Dutch Airlines and Northwest Airlines. Delta currently has antitrust immunity with Air France, Alitalia and CSA, while Northwest has antitrust immunity with KLM. The DOT's ruling will allow these SkyTeam carriers to consolidate their alliance activities.
The closer alliance cooperation made possible by this decision is expected to lead to new and expanding nonstop trans-Atlantic services; more discounted seats available through increased capacity and better cooperation; expanded codesharing, resulting in more convenient routings; shorter travel times and improved time of day coverage; and enhanced competition against rival alliances and improved opportunities to take advantage of the liberalization in trans-Atlantic marketplace made possible by U.S.-EU Open Skies.
The DOT ruling concludes that the proposed combination of alliances will not adversely affect competition. It also finds that the proposed 4-way joint venture "is likely to result in the introduction of new capacity and greater availability of discount fares across the entire joint network."
Commenting on the announcement, Glen Hauenstein, Delta's executive vice president Network Planning and Revenue Management, said: "We are pleased the Department of Transportation recognizes once again that antitrust immunity offers significant advantages to customers including more choice in flight schedules, travel times, services and fares. This grant of immunity allows us to expand these benefits for our customers to two other airline partners and significantly strengthen the SkyTeam alliance."
The DOT's ruling is the first since the new European Union-U.S. Open Skies agreement went into effect on March 30, which created the largest, most important and fully liberalized air transport marketplace in the world. The DOT has approved more than 20 applications for antitrust immunity in the past, including the recent approval of immunity for nine Star Alliance members.
Delta Air Lines operates service to more worldwide destinations than any airline with Delta and Delta Connection flights to 306 destinations in 58 countries. Delta has added more international capacity than any major U.S. airline during the last two years and is the leader across the Atlantic with flights to 37 trans-Atlantic markets. To Latin America and the Caribbean, Delta offers more than 517 weekly flights to 57 destinations. Delta's marketing alliances also allow customers to earn and redeem SkyMiles on nearly 16,409 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Including its SkyTeam and worldwide codeshare partners, Delta offers flights to 841 worldwide destinations in 162 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com.