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Delta, Northwest Urge Alliance’s Rejection

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Reuters

Delta Air Lines Inc. and Northwest Airlines Corp. said they had filed documents urging the Transportation Department to reject a proposed alliance between American Airlines and British Airways, saying it would have a severe impact on competition and on international travelers.

Delta and Northwest said they had filed comments with the department asking that regulators reject the alliance unless other carriers are granted more access to London’s Heathrow Airport.

AMR Corp.’s American Airlines and British Airways have applied for immunity from U.S. antitrust laws to form an alliance that would allow the two airlines to more closely share operations and revenue between the United States and Britain.

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Delta said in its filing that British Airways and American should release a minimum of 504 slots to competitors if their alliance is to be approved. Without that condition, the two large carriers would be able to stifle competition, a Delta spokesman said.

Northwest also said the alliance would dramatically eliminate competition at Heathrow. Northwest called for the release of at least 420 weekly slots to other carriers.

British and U.S. officials are examining a possible “open skies” agreement that could liberalize air traffic routes between the two nations.

Competition at Heathrow has proved a sticking point during earlier talks.

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