DOT Approves Delta-SAS Scandinavian Codeshare Despite JetBlue Objections

The U.S. Transportation Department (DOT) has approved a new codeshare agreement between Delta Air Lines and Scandinavian Airlines (SAS), marking a significant development in the airline industry. This decision, made despite objections from JetBlue Airways, allows Delta and SAS to codeshare on flights connecting the U.S. with Denmark, Sweden, and Norway, as well as various European and American destinations.

The DOT’s ruling includes a two-year exemption permitting SAS affiliates—SAS Connect, SAS Link, and CityJet—to display Delta’s code on intra-European flights. This approval aligns with SAS’s recent entry into the SkyTeam alliance on September 1, a move supported by a consortium including SkyTeam member Air France-KLM, the Danish state, and investment firms Castlelake and Lind Invest.

Delta and SAS had requested expedited approval to synchronize with SAS’s SkyTeam membership, which was a condition of their agreement. Despite JetBlue’s objections, which were centered on unresolved codeshare issues in Europe, the DOT granted approval without delay. JetBlue’s concerns, filed in July and updated in August, related to its struggles with codeshare approvals for its partnership with Air Serbia in Italy and Croatia. JetBlue argued that these issues should influence the Delta-SAS decision due to similar codeshare service contexts.

However, the DOT determined that JetBlue’s challenges did not pertain to the Delta-SAS agreement. The department emphasized that the Delta-SAS codeshare is supported by the U.S.-European Union Air Transport Agreement and is independent of JetBlue’s bilateral agreements. The DOT’s decision was based on the routine nature of the Delta-SAS request, and it stated that there was no compelling reason to delay or impose special conditions on the agreement.

The DOT acknowledged JetBlue’s concerns and committed to continued dialogue with the airline and foreign counterparts to ensure fair consideration of codeshare requests. “We see no persuasive reason on the record before us to withhold approval, delay action or impose special limits on an otherwise routine codeshare request,” the DOT said in its ruling.

In other developments, SAS recently emerged from Chapter 11 bankruptcy proceedings in the U.S. and concluded its restructuring process in Sweden. The Scandinavian carrier has transitioned from Star Alliance to SkyTeam and established new codeshare and interline agreements with Air France and KLM. SAS has also expanded its network, including the launch of a new transatlantic route from Copenhagen to Atlanta Hartsfield-Jackson International Airport, a hub for Delta. This route, which began in June, operates daily using Airbus A330-300 aircraft, further enhancing the connectivity between the two airlines.

The approval of the Delta-SAS codeshare agreement represents a significant milestone for both airlines and underscores the ongoing evolution of international airline partnerships.