The US Department of Transportation (DoT) is reconsidering Delta Air Lines and Virgin Blue Group?s alliance proposal that will see the airline develop connections between the US and Australian market.
During September, the DoT?s preliminary decision was to deny the joint venture on the grounds that the proposed partnership failed to outline how the ?alliance would lead to lower air fares, increased capacity or other benefits for consumers.?
In October, Australian Department of Infrastructure and Transport Deputy Secretary, Andrew Wilson, challenged the DoT?s initial rejection of the plan stating the venture would provide ?long-term sustainable competition? within the Australian market, reported the The Australian.
Since then the DoT has had the opportunity to properly review a revised submission from both airlines and has requested additional information to support the proposed merger.
"We find that additional action by the applicants, which must be documented, is necessary to enable us to fully and fairly evaluate their proposed changes to the alliance? said the DoT.
Documents including formal alliance agreements, programming alterations, capacity agreements and catalogued status reports are just some of the necessary reports needed to aid in actualising the prospective agreement.
The initial revised appeal was presented to the DoT on October 13 and once all additional materials have been provided the DoT will come forward with their decision.
There is currently no set date as to when the ruling will be announced. Source = e-Travel Blackboard: P.T
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