United and Delta slot swap blocked

Thursday, 12 Nov, 2015 0

US airline giants United and Delta have been blocked from trading take off and landing slots at two east coast airports.

The Justice Department has stepped in because it clams the deal would increase United’s dominant position at New York’s Newark Liberty Airport.

It says this will make it harder for other airlines to compete.

"Competition in Newark is in critically short supply," William J. Baer, the assistant attorney general, said in a statement. "Allowing United to acquire even more slots at Newark would fortify United’s monopoly position and weaken rivals’ ability to challenge that dominance, leaving consumers to pay the price."

United already controls more than 70% of the traffic in Newark following its merger with Continental.

Airfares from Newark are among the highest in the US, according to the Justice Department, as a result of what it called a ‘Newark premium’.

United has signaled its intention to move out of JFK airport, where it hasn’t made a profit for the past seven years, and focus instead on Newark. As a result, it planned to lease 22 slots from Delta at Newark in exchange for 24 slots at Kennedy.

United argues the agreement would be good for passengers and says it will ‘vigorously defend’ its case



 

profileimage

Linsey McNeill

Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk



Most Read

Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know

Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham

Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago

Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research

Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact

Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference

Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role

Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal

Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination

Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness

Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future

Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
TRAINING & COMPETITION
Skip to toolbar
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...