The U.S Department of Transportation (DOT), Virgin Blue Holdings and Delta Air Lines are in talks over the department’s preliminary decision to deny the application submitted by the airliners to operate flights between Australia and the U.S.  

Despite receiving approval from the Australian government, the U.S department said the airlines are relatively new to the U.S and Australia and the alliance would fail to benefit the public, breaching anti-trust laws.

“Delta and its partners have only recently entered the U.S- Australia market, have not shown developed plans to operate as commercial partners, and have limited their cooperation to a handful of routes, thereby limiting the public benefits their alliance might produce.”

The government added the proposal failed to show the “alliance would lead to lower air fares, increased capacity or other benefits for consumers”.

Virgin rejected the department’s decision stating “the proposed alliance with Delta will be good for consumers”.

Delta Air Lines agreed with Virgin claiming “we strongly believe our proposed alliance with the Virgin Blue Group will be good for consumers”.

“We are reviewing the DOT’s tentative order and will respond within the comment period,” Delta said in a written statement to Associated Press.

The airlines have been awarded two weeks to protest the announcement before the decision is made official later in the month.