MEXICO- On Friday, the US government announced its intention not to extend the antitrust immunity that currently allows Delta Air Lines (DL) and Aeromexico (AM) to operate a codeshare agreement.
This decision comes after the Mexican government implemented significant changes at Mexico City International Airport (MEX), the country’s busiest airport.
Delta Aeromexico Codeshare Rejected
Last year, Mexican authorities relocated cargo flights from MEX to a newly constructed airport on the outskirts of the city, as mandated by the president. Subsequently, slot availabilities for commercial flights were reduced in an effort to alleviate congestion at MEX.
According to the U.S. Department of Transportation (DOT), these measures adversely affect existing carriers and discourage potential new entrants. The DOT has consistently expressed dissatisfaction with the slot allocations at the airport.
The final ruling on the decision is pending, as stated by the department, and the companies tentatively have until October 26 to conclude their joint venture.
Under the immunity agreement, the airlines are permitted to sell seats on each other’s flights through a codeshare arrangement. Delta and Aeromexico had plans to provide more than 90 daily flights between the countries this year under this arrangement, as announced by Delta in October.
Delta mentioned that it is currently evaluating the DOT’s decision, while there was no immediate response from Aeromexico to a request for comment.
Government Differences
The actions taken by the Mexican government, which President Andres Manuel Lopez Obrador has acknowledged are aimed at increasing traffic at the new Felipe Angeles International Airport, have faced opposition from U.S. authorities, carriers, and industry groups.
The decision to relocate cargo flights also disrupted the joint venture plans of Allegiant and Viva Aerobus last year.
Mexico had previously asserted that renovations were necessary for the decades-old Mexico City International Airport (MEX). However, the DOT stated that it had been informed that no additional capacity would be added at this time.
According to the DOT, U.S. officials have engaged in discussions with senior Mexican counterparts regarding these decisions, which the DOT characterized as “fundamentally out of compliance with the existing bilateral air service agreement and international norms.”
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