Delta Air Lines & SAS Dispute JetBlue’s “Late” Objection To Codeshare Flights

Summary

• Delta Air Lines and SAS have disputed JetBlue’s objection to their codeshare agreement, which should begin on September 1.
• JetBlue has been having issues with its own codeshare with Air Serbia being approved by two EU countries.
• However, Delta Air Lines and SAS argued that these issues were irrelevant to its pending codeshare agreement.

Delta Air Lines and

Scandinavian Airline System (SAS)

, as well as the latter’s regional affiliates, have publicly blasted JetBlue for impeding its own codeshare application, arguing that JetBlue filed a late objection to its follow-up response about its proposed codeshare services.

According to the two airlines, JetBlue’s challenge came much later than the 15-day objection timeline that was outlined by the United States Department of Transportation’s (DOT) rules.

Late objection

Delta Air Lines

and SAS filed their response to JetBlue’s objection under docket DOT-OST-2024-0076 on August 15, detailing that the pair and the Scandinavian carrier’s regional subsidiaries have requested the DOT to approve their codeshare imminently as the two airlines would like to begin selling seats on the flights as soon as possible.

The regional affiliates included Scandinavian Airlines Ireland (SAS Connect), SAS Link, and CityJet, which wet leases the majority of its aircraft to SAS.

The codesharing should begin on September 1, coinciding with the day that SAS will switch from Star Alliance to SkyTeam following Air France-KLM’s investment in the Scandinavian airline.

“On August 7, long after the 15 days allotted by DOT rules for filing objections […], and very close to the date that Joint Applicants had hoped to start selling seats for the involved [US – Scandinavia] and beyond codeshare flights that would begin [on] September 1 […], JetBlue filed a new Objection together with a motion for leave file.”

The two airlines stated that

JetBlue

claimed there was good cause to accept its objection since it would provide the DOT with new information to consider.

However, Delta Air Lines and SAS stated that JetBlue had no new information since filing its initial objection on July 5.

“Accordingly, the new objection should be rejected as untimely, and the Delta-SAS statements of authorization and exemptions granted promptly.”

JetBlue failing to get its own codeshare approved

The two carriers, represented by their respective counsel and Director of regulatory affairs, continued criticizing JetBlue and its late objection.

“JetBlue has belatedly revealed – for the first time – that its Air Serbia codeshare, where JetBlue codeshares on Air Serbia’s [US – Belgrade] flights, and beyond, approved more than a year ago by DOT on June 26, 2023, is the source of its codeshare difficulties.”

The pair pointed out that the airline claimed that Italy and Croatia have failed to approve JetBlue’s attempt to put its B6 designator code on Air Serbia flights between their countries and Serbia.

The codeshare would allow JetBlue to expand its European network to include these countries via

Belgrade Nikola Tesla Airport (BEG)

.

However, both European Union (EU) members have claimed that the European Common Aviation Area (ECAA) agreement does not allow such codesharing by

Air Serbia

, a non-EU member yet a member of the ECAA, claimed the filing.

As such, the governments of Italy, Croatia, and Serbia would be responsible for resolving the problem.

“JetBlue not only contends here that this is wrong, but that DOT needs to address the “asymmetry in reciprocity” that has resulted from this interpretation because DOT has liberally granted comparable codeshare approvals for EU carriers.”

Irrelevant issues

Delta Air Lines and SAS argued that JetBlue’s short notice, their desire to begin the codeshare services on September 1, and whether Italy and Croatia have interpreted the ECAA agreement correctly should not affect the DOT’s decision-making since the ECAA-related problems were not “relevant and should not have any effect.”

The two also argued that the Department had already approved the JetBlue and Air Serbia codeshare in June 2023 and that the circumstances of the two codeshare agreements were fundamentally different.

While the proposed Delta Air Lines and SAS codeshare agreement involved a US and EU-based airline, the JetBlue and Air Serbia arrangement involved a non-EU carrier.

Furthermore, there are no third countries involved in the proposed codeshare and it was clearly authorized by the US-EU Open Skies Agreement, the representatives added.

“Thus, the nexus between the JetBlue situation and the SAS-Delta applications, that both involve Italy and Croatia, is extremely weak.”

Delta Air Lines and SAS concluded that JetBlue’s objection had no legitimate basis to further delay the approval of the pair’s codeshare agreement, requesting the DOT to expeditiously green light the services.

If that was not possible due to the Department’s concerns, the two airlines proposed to ‘carve out’ the EU and non-EU ECAA markets where JetBlue has raised problems and to only approve the codeshare between the US and Scandinavia.

At the same time, if the DOT chooses to ‘carve out’ the codeshare agreement, the pair asked the DOT to mandate JetBlue to update the docket when issues with Italy and Croatia are resolved.

Delta Air Lines and SAS filed its initial application on June 27, stating that the codeshare services would create substantial benefits for passengers flying between the US and Scandinavia.