Delta Air Lines and Aeromexico have agreed to bite the bullet and give up landing slots as requested to push through their joint venture partnership.
The Department of Transportation approved the alliance only if the airlines gave up 24 slots at Mexico City’s Benita Juarez Airport and a further four at New York JFK.
The agreement means the offloaded slots will be handed over to low cost carriers to encourage more competition.
As a result the DOT grants the JV antitrust immunity for a five-year period.
Still, the two airlines are far from happy having to make these concessions.
"In markets with robust competition, the public interest is not served by the government favoring a particular type of competitor, imposing a redistribution of assets, and deciding who should compete where," a joint statement said.
A Delta-Aeromexico alliance would still control about a quarter of the US-Mexico market.
Delta said approval now paves the way for it to increase its stake in Aeromexico to 49%.
