Delta, SAS Challenge JetBlue’s Objection to Codeshare Deal

Delta Air Lines and Scandinavian Airlines (SAS) are urging the U.S. Department of Transportation (DOT) to disregard JetBlue Airways’ “late-filed” objection to their proposed codeshare agreement. The airlines argue that JetBlue’s concerns, raised after the initial filing, are untimely and should not delay the approval process.

Delta and SAS, along with SAS affiliates, applied for DOT approval in June to codeshare on flights between the U.S. and Scandinavia, starting September 1—the date SAS joins the SkyTeam alliance. The proposed agreement is intended to enhance connectivity and streamline travel between the two regions.

JetBlue initially objected in July, citing delays in securing similar codeshare agreements in certain European Union (EU) countries. In early August, JetBlue submitted an additional objection, highlighting issues with its own codeshare arrangement with Air Serbia.

In response, Delta and SAS have requested expedited approval from the DOT, arguing that JetBlue’s issues are unrelated to their application. They have also proposed a potential “carve-out” for the European markets specifically mentioned by JetBlue, including Albania, Bosnia-Herzegovina, Croatia, Italy, and Montenegro. This carve-out would allow the rest of the codeshare services to proceed as planned while the DOT addresses JetBlue’s concerns separately.

“If the department accepts the ‘carve-out,’ it should also require JetBlue to promptly update the docket when the codesharing issues with Italy and Croatia are resolved,” stated a filing to the DOT. “This approach would enable the bulk of the Delta-SAS codesharing to commence as scheduled on September 1, while still allowing the DOT to address JetBlue’s specific concerns.”

JetBlue’s objections stem from challenges faced with obtaining approvals for codesharing on routes between the U.S. and Serbia, including connections to Croatia and Italy. The EU member states have raised objections to JetBlue’s plans, arguing that they conflict with the U.S.-EU open skies agreement and current codesharing practices.

In June 2023, JetBlue and Air Serbia applied to the DOT for authority to codeshare on routes between the U.S. and Serbia, as well as on connecting flights to third countries. The DOT approved this application later that month, allowing Air Serbia to display JetBlue’s code on flights between Serbia and the U.S., and vice versa.

JetBlue contends that Delta and SAS are pursuing similar codeshare opportunities to the ones it is being denied, questioning the consistency of the regulatory process. The carrier argues that the objections raised by the EU member states regarding its agreement with Air Serbia are inconsistent with existing codesharing practices between U.S. and EU carriers.

As the DOT considers these competing arguments, the resolution of JetBlue’s objections remains crucial for the timely implementation of the Delta-SAS codeshare agreement. Delta and SAS are pushing for a swift resolution to ensure that their expanded codeshare services can launch as scheduled, enhancing connectivity and travel options for passengers between the U.S. and Scandinavia.

Sources: AirGuide Business airguide.info, bing.com, aviationweek.com