Delta-Virgin antitrust immunity pact heard

WASHINGTON, May 10 (UPI) -- U.S. officials proposed to approve an antitrust immunity pact between Delta Air Lines and Virgin Blue Group affiliates to operate joint U.S.-Australia services.

The air carriers revised their application after the U.S. Transportation Department tentatively denied a request for immunity made in September, the department said in a release.

Antitrust immunity allows airlines to coordinate their international operations. In Tuesday's order, the Transportation Department tentatively concluded the revised application demonstrated that the Delta-Virgin alliance would sufficiently benefit the public to justify a grant of immunity without hampering competition.

The department said Delta and its partners made substantial changes from their previous application and addressed concerns that immunity would provide only limited benefit to consumers. Officials said the Virgin Blue Group expanded the scope of the alliance to include service to more passengers.

If final approval is given, the carriers must begin their joint venture within 18 months of a final order, the department said.