Delta Air Lines (DL, Atlanta Hartsfield Jackson) and Aeroméxico (AM, México City International) have announced they have accepted the US Department of Transportation's (DOT) terms and conditions for antitrust immunity for their US-Mexico joint venture.

In a Final Order published earlier this month, the DOT said given its anticompetition concerns about AeroMexico/Delta's dominant position in the New York JFK and México City International markets, the duo would be required to divest twenty-four takeoff and landing slots at Mexico City and six at New York JFK for their joint-venture to be immunized. Additionally, any antitrust immunity granted would only be valid for a maximum of five years.

The Mexican-American duo subsequently baulked at the requirement arguing instead for the DOT to adopt the measures prescribed by the Mexican Anti-Monopolies Commission (Comisión Federal de Competencia Económica - COFECE) wherein they only be required to relinquish eight México City slot pairings to secure antitrust approval.

On consideration, the DOT slightly revised its conditions requiring that only four New York slots be relinquished. Given the DOT's take-it or leave-it position, Delta and AeroMexico had no option but to accept the conditions.

“Together, Delta and Aeroméxico 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. We will offer industry-leading reliability, great service and an unmatched array of options.”

The DOT has said anti-trust immunity will only become effective once the parties have complied with COFECE's requirements and once the slot transfer agreements for the initial round of fourteen Mexico City slot-pairs and two New York JFK slot-pairs have been approved for disposal, executed by the parties, and approved by the slot coordinators.

Under their joint venture, Delta and AeroMexico 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, New York, Salt Lake City and Seattle Tacoma International - will offer AeroMéxico's clientele improved access across the United States.