Delta in bid to block AA/Alaska Airlines LAX-MEX route transfer

Delta Air Lines (DL, Atlanta Hartsfield Jackson) has petitioned the US Department of Transportation (DOT) to block a joint request by American Airlines (AA, Dallas/Fort Worth) and Alaska Airlines (AS, Seattle Tacoma International) to transfer Alaska's Los Angeles International-México City International route authority to American. The two carriers announced plans for American to take over the route from June 4 operating a double-daily return service with Alaska Airlines codesharing.

However, in its filing with the DOT, Delta argued that transferring the route to American would contradict the Department's 2005 ruling that awarded it to Alaska Airlines in the first place. Back then, the DOT justified its allocation on the grounds that as American was already a dominant carrier in the US-Mexico/US-Mexico City market, awarding it an additional route would not be in the public's interest.

"The proposed route transfer would eviscerate the Department’s public interest determination to award LAX-MEX route to Alaska over American. American continues to be the dominant carrier on U.S.-Mexico routes and is the largest hub carrier at Los Angeles," the carrier stated.

Delta went on to argue that as the DOT has never before permitted such transfers without a carrier selection proceeding, the switch should therefore be blocked. In addition, as a potential entrant into the market, Delta claims its proposed 3x daily service would be a better use of the route authority.

Under the terms of the United States' Bilateral Air Services Agreement with Mexico, the only two US carriers allowed to operate the route are Alaska Airlines and United Airlines (UA, Chicago O'Hare).

The spat is the latest between Delta and American, the most recent of which involved American and Hawaiian Airlines (HA, Honolulu) petitioning the DOT to revoke Delta's Seattle Tacoma International-Tokyo Haneda route authority for purported underutilization. Though the DOT did eventually rule in Delta's favour, it did attach several stringent conditions for its continued use.