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Delta, Aeromexico must relinquish Mexico slots ahead of JV partnership
Sunday, 04 May, 2016
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Delta Air Lines has been given the green light by the Mexican air regulator for its proposed joint venture with Aeromexico, but with conditions attached.
The two airlines will have to give up eight pairs of slots at Mexico City International Airport.
These will be mainly duplicate flights that both carriers already operate on the same routes.
The approval will allow for a deepening of their existing codeshare agreement between the US and Mexico, but is still awaiting approval from US regulatory authorities.
The airlines had asked for antitrust immunity to coordinate prices, seat capacity and flight schedules
The USD$1.5 billion joint venture partnership was also conditional on a wider air services pact being agreed between the US and Mexican authorities.
Mexico’s Senate last week approved this which will allow carriers to launch new routes between the US and Mexico with the potential for an unlimited number of flights.
Southwest Airlines has also welcomed this agreement and plans more routes to Mexico
"We have plans in the works for additional service to and from Mexico, so we’ll look forward to making those announcements just as soon as this agreement becomes fully effective," said Southwest CEO Gary Kelly.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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