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Delta & Aeromexico Acquiesce to DOT Antitrust Requirements

By Michael B. Baker / 21 December 2016 / Contact Reporter
Business Travel News on X

Delta Air Lines and Aeromexico have accepted the U.S. Department of Transportation's stipulations for antitrust immunity, clearing the way for a joint cooperation agreement between the two carriers.

The two carriers now can coordinate destinations and frequencies and increase cooperation on sales and marketing initiatives. They also can work together to co-locate facilities in airports and invest to improve gates and lounges.


Together, Delta and Aeromexico are stronger in the U.S.-Mexico market than either airline can be on its own."

Delta CEO Ed Bastian

In addition, Delta can proceed with plans to increase its minority stake in Aeromexico to as much as 49 percent, putting that investment in line with Delta's stake in Virgin Atlantic.

"Together, Delta and Aeromexico are stronger in the U.S.-Mexico market than either airline can be on its own," Delta CEO Ed Bastian said. "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."

The carriers' agreement appeared to be in jeopardy in recent months when the DOT said it would require the carriers to divest 24 transborder slots from Mexico City's Benito Juarez International Airport and six slots at New York's John F. Kennedy International Airport. Delta protested the decision, and while the DOT's final order decreased the JFK divestiture to four slots, it left the Mexico City requirements unchanged. Today, however, the carriers accepted the order.

Last year, the U.S. and Mexico removed limits on the number of carriers operating between U.S.-Mexico city pairs, opening the first door for this partnership.

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