U.S. DOT may reject airline service plan - KWWL - Eastern Iowa Breaking News, Weather, Closings

U.S. DOT may reject airline service plan

WASHINGTON (AP) -- The U.S. Transportation Department says it is leaning toward rejection of a proposed joint venture between Delta Air Lines and affiliates of the Virgin Blue Group on flights to Australia and New Zealand.

The airlines have requested permission to coordinate fares and schedules, and to share money from the flights. Usually, anti-trust laws block that kind of collaboration.

Airlines can get permission in some cases for joint ventures like the one Delta proposed. But the U.S. Transportation Department says the airlines have not shown that the alliance would provide enough benefits for travelers such as lower fares or increased capacity, but the department has not made a firm decision on the matter yet.

Australian authorities approved the deal in December.

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