U.S. Tentatively Green Lights Delta-Aeromexico Joint Venture

By Paul Riegler on 5 November 2016
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An Aeromexico 787 at JFK

An Aeromexico 787 at JFK

The U.S. Department of Transportation gave Delta Air Lines and Aeromexico tentative approval for their planned joint venture Friday, but the two carriers were told to free up certain airport slots to allow for greater competition.

Mexico’s federal competition commission approved the airlines’ plans in May.

Once final approval is granted, the move will allow give the airlines the ability to set prices and coordinate schedules for their U.S.-Mexico flights with immunity from U.S. anti-trust laws.

Delta, which currently holds a small stake in Aeromexico, is awaiting regulatory approval to increase its ownership to 49%, the same percentage of ownership it has in Virgin Atlantic Airways, another airline with which it has a joint venture.

After the ruling was announced, New York-based JetBlue Airways issued a statement commending the DOT for ensuring airport access will be available to other airlines. The airline had asked the agency to require the two airlines to give up at least 30 slots in Mexico city.

(Photo: Accura Media Group)

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