How proactive were Delta Air Lines, Inc (NYSE:DAL) and Virgin Atlantic

Posted by Kristi Scott September 24, 2013 0 Comment 1542 views

On Monday, Delta Air Lines, Inc (NYSE:DAL) and Virgin Atlantic Airways were granted Antitrust immunity by the United States government for the transatlantic joint-venture that had been proposed by the two companies. The government says that a venture such as this one has the potential to boost competition in the industry.  The DoT has given the two companies the nod which in effect provides them immunity from any antitrust moves from other companies.

Improving competition

In its order, DoT said that they have reached the conclusion that this joint-venture will prove to be pro-competitive and that it will also benefit travelers. The tentative decision had been announced on 30 August and they said that no objection had come forth from any factions. Via this joint-venture, the 2 companies will team up to provide services on North America to Britain routes.

DoT approval

The United States and the EU antitrust authorities had granted approval for Delta Air Lines, Inc (NYSE:DAL)’s proposal to acquire a 49% stake in Virgin Atlantic to operate this transatlantic service that would be run by both the companies. They had determined that there would be no adverse reaction on competition in the industry. However, the companies wanted to play it safe and had also sought immunity approval from the DoT.

The approval was welcomed by both the companies and they have now revealed a completely new air schedule for the New York JFK-London Heathrow sector. Starting 30 March they will be offering 9 non-stop flights between these airports. Eventually, the plan is to operate at least 32 daily non-stop flights on this route.

Monday’s trading

In Monday’s trading, Delta Air Lines, Inc (NYSE:DAL) stock rose by 0.09%. The opening price of the shares was $23.31 which reached an intraday high of $23.51 and dropped to a close of $23.32. Approximately 9.88 million shares were traded on Monday.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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