Southwest Airlines wants WestJet to give up New York slots under Delta pact
Southwest Airlines wants WestJet to divest its slots at New York LaGuardia under a proposed partnership with Delta Air Lines, amid several objections to the planned pact.
The Dallas-based discounter argued in a filing with the U.S. Department of Transportation on Wednesday that granting the partnership without forcing the divestment of WestJet's eight slot pairs -- one pair is needed for a flight to takeoff and land -- would reduce competition at LaGuardia (LGA) by putting more slots effectively under the control of Delta.
JetBlue Airways and WestJet acquired eight slot pairs each at the close-in New York airport as part of a deal between Delta, US Airways and U.S. regulators in 2011. The sales were designed to increase smaller carriers' presence at LaGuardia in order to boost competition.
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“To preserve the competitive benefits intended (and currently provided) by that divestiture, the [DOT] should require the 16 LGA slots that WestJet now holds to be re-divested to one or more independent U.S. [low-cost carriers]," said Southwest.
Southwest holds 28 slot pairs, compared to Delta's 260 pairs, at LaGuardia. The discounter focused its New York operation on the airport in November when it ended service to Newark Liberty (EWR). It also serves Long Island MacArthur Airport (ISP) on Long Island.
Delta and WestJet, in their joint venture application to the DOT, said the partnership will be beneficial for consumers. If approved, they have promised to boost capacity between Canada and the U.S., including adding six new routes. The pact would also offer a more seamless experience for customers traveling on both carriers, including a closer frequent flyer relationship.
Related: Delta Air Lines, WestJet Partnership Gets Canadian Sign Off
A joint venture allows airlines to act as essentially one in a specific market, for example between Canada and the U.S. for Delta and WestJet. This includes coordinating schedules and fares, and jointly marketing and selling tickets.
Alaska Airlines also commented on the proposed Delta-WestJet pact. The Seattle-based carrier opposes the joint venture, saying in a Wednesday filing with the DOT that it would "result in further concentration of U.S.-Canada transborder market power." The airline claims that nearly 87% of transborder capacity would be controlled by the dual partnerships of Delta and WestJet, and Air Canada and United Airlines.
This concentration would, according to Alaska, limit its — and other U.S. carriers' — ability to expand in Canada, where it serves five cities.
Alaska cited the example of Mexico City (MEX). Despite conditions placed on Aeromexico and Delta's partnership in 2016, Alaska and Southwest Airlines were unable to compete. Alaska and Southwest ended service between Los Angeles (LAX) and Mexico City (MEX) not long after the partnership. Despite the restrictions, partners Delta and Aeromexico were able to fortify their presence with hubs on both ends of the route.
Air Canada and United, while they have antitrust immunity between Canada and the U.S., only have a codeshare in the market and not a jointly coordinated partnership.
Related: WestJet Dash 8s Could Soon Take Over These Delta Routes to Canada
The DOT has required slot divestitures and required regular reviews in recent joint venture approvals. Aeromexico and Delta were forced to give up slots at Mexico City and New York John F. Kennedy (JFK) airports, and the regulator stipulated regular reviews of the carriers' partnership, as well as the tie up between American Airlines and Qantas Airways that was approved in July.
Delta president Glen Hauenstein expects a DOT decision on its proposed venture with WestJet in the first half of 2020, speaking at an investor day Thursday.
"We think there’s huge value on the U.S.-transborder market for us," he said.
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Annual Fee
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.