Delta to Seek U.S. Approval for Transatlantic Network : Transportation: No. 3 airline will file the application for antitrust immunity with federal government.

L.A. Times Archives

May 9, 1995 12 AM PT

From Reuters

NEW YORK —

Delta Air Lines Inc. will soon seek U.S. approval to expand an alliance with three European carriers and create a massive transatlantic network, industry sources familiar with the plan said Monday.

The nation’s third-largest airline already has an alliance with Austrian Airlines, Swissair and Belgian carrier Sabena, but it is seeking antitrust immunity from the Transportation Department to sharply expand the partnership.

Although many U.S. airlines are involved in alliances that permit them to share passengers on interlocking routes, antitrust laws prohibit them from sharing key information.

If the request is approved, Atlanta-based Delta could jointly set fares, schedules, routes and promotions with the three other airlines in its alliance.

“It is no secret we are looking at this possibility, but it would be premature to say what we will be doing,” Delta spokesman Bill Berry said.

Two industry sources said Delta will probably file the application this month. “This will allow them to act as a single airline,” said a source involved in the project.

The bid for antitrust immunity follows tentative “open skies” agreements the United States recently struck with Switzerland, Austria and Belgium.

“Swissair and Delta don’t have this immunity yet, so they cannot make agreements on same prices. Open sky is the first step, antitrust immunity the second,” Swissair spokesman Erwin Schaerer said. Earlier this month, Swissair obtained a 49.5% stake in Sabena.

Northwest Airlines Corp. is the only U.S. airline that now has antitrust immunity with another carrier.

The General Accounting Office released a study last week showing that Northwest’s alliance with Dutch carrier KLM Royal Dutch Airlines generated from $125 million to $175 million for Northwest last year.

Although the Transportation Department approved the antitrust immunity for Northwest, it has set no specific policy on the issue.