Delta and Aeromexico have accepted conditions from the US department of transport for antitrust immunity allowing them to establish a joint venture agreement.
The US government has placed several conditions on the deal with the most critical being the airlines must relinquish 24 slots at Mexico City International and four slots at New York JFK. The US DOT said this was to prevent a rise in airfares due to reduced competition on the cross border routes.
Antitrust immunity allows Delta and Aeromexico to coordinate schedules, destinations and fares, as well as co-locate at airports and jointly invest in facilities in both the US and Mexico. They will have to renew the immunity in five years.
“This agreement will mark the beginning of a new era in the aviation of North America, as the first and the largest cross-border alliance between Mexico and the United States,” said Aeroméxico CEO Andrés Conesa.
“It is the next step in our relationship, and our networks will provide more benefits to our customers while increasing the options for connectivity, products and services.”
Delta will offer a strong presence in the United States through its hubs in Atlanta, Detroit, Los Angeles, Minneapolis-St. Paul, New York, Salt Lake City and Seattle; while Aeromexico will offer larger access to Mexico through its hubs in Mexico City, Monterrey and Guadalajara.
“Together, Delta and Aeroméxico are stronger in the U.S.-Mexico market than either airline can be on its own,” said Delta CEO Ed Bastian. “The partnership will make it possible for us to offer customers more flights to more destinations, with more choices every time someone travels across the border. We will offer industry-leading reliability, great service and an unmatched array of options.”