DELTA PILOTS RAISE CONCERNS OVER AIR FRANCE-VIRGIN-DELTA JOINT VENTURE
September 12, 2019
DOT issued tentative approval for antitrust immunity (ATI) on August 2, 2019, for Delta, Air France-KLM, and Virgin to operate an expanded joint venture between the U.S., UK and continental Europe (Order 2019-8-2). In July 2018, the three airlines announced their intention to engage in a joint venture which would essentially combine Delta’s two parallel joint ventures with Virgin and Air France.
On August 16, 2019, the Delta Master Executive Council (MEC) of the Air Line Pilots Association filed a comment on behalf of its more than 14,000 pilots in response to the Department’s Order to Show Cause which tentatively approved the airlines’ ATI request. The MEC raised concerns regarding a potential reduction in Delta’s financial incentive to expand its operations in the U.S., UK and continental Europe markets.
Following Delta’s joint venture with Virgin in 2013, MEC noted that Delta’s operation failed to expand an in any significant way, and nearly all benefits seen from the joint venture went to the Virgin crews. The MCE asked the Department to expand the scope of its proposed five-year review of the joint venture to include an assessment of flying opportunities generated under the alliance and its impact on U.S. aviation jobs. It also requests an interim review on December 31, 2019, to evaluate progress in this regard.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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