Summary
- Delta and Aeromexico’s cross-border joint agreement will not be renewed due to a tentative ruling from the USDOT.
- The ruling is based on recent actions by Mexico’s government regarding operations at Mexico City International Airport.
- The termination of the partnership is expected to take place in October.
A cross-border joint agreement between Delta Air Lines and Aeromexico will not be renewed due to a tentative ruling from the US Department of Transportation (USDOT). Since 2017, the Joint Cooperation Agreement (JCA) between the two carriers has allowed them to coordinate flight schedules and pricing.
It comes after both airlines planned to gradually expand operations between Mexico and the US beginning this month. Should the USDOT’s ruling be finalized, the transborder partnership will be terminated later this year.
Blaming Mexico’s government
The ruling, issued on Friday, explains that the department “tentatively dismisses without prejudice” Delta and Aeromexico’s application to renew their grant of antitrust immunity (ATI) for their JCA and other alliance agreements. The USDOT cited “recent actions” by Mexico’s government for removing its consideration of ATI or “continuation of an existing immunized joint venture.”
Photo: Renata Ty | Shutterstock
According to the department, the actions concern operations at Mexico City International Airport (MEX), Aeromexico’s main hub.
“Actions taken by the Mexican government regarding operations at MEX have been raised by the U.S. Government with counterparts at the highest levels within the Government of Mexico in formal consultations as being fundamentally out of compliance with the existing bilateral air service agreement and international norms governing capacity management at airports.”
Impacting airline competition
The USDOT’s “longstanding policy” regarding air transport agreements between two home countries is defined in Order 92-8-13, which was issued in 1992 and established the definition of “Open Skies.”
In October, Delta and Aeromexico announced that their transborder seat offering would increase in 2024 by more than 30%, with Aeromexico launching 17 routes from seven Mexican destinations. According to the Government Accountability Office, ATI is intended to provide travelers with enhanced services but can also negatively impact airline competition.
Aeroméxico And Delta Air Lines Unveil Details Of US-Mexico Expansion
On Tuesday, details were revealed for 15 new routes set to be launched next year.
Following “continued consultations,” the USDOT said it has yet to see any necessary changes to operations at MEX that do not comply with current regulations.
“After continued consultations that have not altered the current course, the Department tentatively concludes that the condition precedent necessary for consideration and continuation of ATI, namely the adherence by the Government of Mexico to its obligations under the U.S.-Mexico Aviation Agreement, is no longer present,” the department explained.
A similar move occurred in July last year when the USDOT suspended its review of a proposed joint venture between Allegiant Air and Viva Aerobus.
DOT Suspends Review Of Proposed Joint Venture Between Viva Aerobus And Allegiant Air
The department cited the regulations established in the Air Transportation Agreement for its decision.
Ending the partnership in October
Last month, Delta and Aeromexico celebrated six years of their transborder agreement, but they have had a relationship for over two decades. While giving travelers more choices and more accessible connections, there have also been other benefits thanks to both carriers being part of the SkyTeam Alliance. Frequent flyers can earn miles or rewards through Delta’s SkyMiles program and Aeromexico rewards.
Photo: Philip Pilosian |…
This article was originally published by a simpleflying.com . Read the Original article here. .