Mexico's Anti-Monopolies Commission (Comisión Federal de Competencia Económica - COFECE) says it has tentatively approved a proposed USD1.5 billion joint-venture between Aeroméxico (AM, México City International) and Delta Air Lines (DL, Atlanta Hartsfield Jackson) to operate flights between Mexico and the United States, albeit with several conditions attached.
Through the proposed joint venture, the airlines will offer an expanded network within Mexico and connections to US business centres in Los Angeles and New York. AeroMéxico's hubs – Mexico City, Monterrey Mariano Escobedo, Guadalajara and Hermosillo – will give Delta customers greater access to cities throughout Mexico while Delta's key hubs - Atlanta Hartsfield Jackson, Detroit Metropolitan, Los Angeles International, Minneapolis St. Paul International, New York, Salt Lake City and Seattle Tacoma International - will offer AeroMéxico's clientele improved access across the United States.
However, COFECE said in a statement that the carriers would have to relinquish to competing carriers, the equivalent number of México City International slot pairings used by Delta during 2015 - eight. In addition, either Delta or AeroMéxico will have to relinquish route allocations where their services currently overlap, again to competing carriers.
The measures are aimed at ensuring the proposed partnership does not monopolize the Mexico-US market by curbing existing or proposed activities of new entrants.
Once they have been able to secure regulatory approval, Delta and AeroMéxico plan to co-locate and invest in airport facilities by improving gates and lounges. Additionally the airlines will increase joint sales and marketing initiatives.
