Mexican Airport Changes Spark: The termination of the Delta-Aeromexico codeshare by the United States government has sent shockwaves through the aviation industry.
This move comes in the wake of recent airport changes in Mexico, which have raised concerns and discontent among various stakeholders. The dissatisfaction of the Department of Transportation (DOT) has played a significant role in the non-renewal of the antitrust immunity, leading to the unraveling of this strategic partnership.
The responses from both airlines and the Mexican government have added fuel to the fire, leaving many questions unanswered. As we delve deeper into the intricacies of this situation, it becomes evident that the American International Airport (AICM) renovations are at the heart of the matter, with the DOT asserting non-compliance with international norms.
The implications of this decision are far-reaching, and the future of this once-promising alliance hangs in the balance.
Key Takeaways
- The termination of the Delta-Aeromexico codeshare agreement by the U.S. government has significant implications for flight schedules, joint fares, and revenue sharing between the two airlines.
- The codeshare termination is part of the U.S. government’s efforts to promote competition and create a level playing field in the airline industry.
- The Mexican government’s changes at Mexico City International Airport (AICM), including relocating cargo flights and reducing slot availabilities, have played a role in the termination of the Delta-Aeromexico partnership.
- The dissatisfaction of the U.S. Department of Transportation (DOT) with the impact on carriers and the non-renewal of antitrust immunity further highlight the complexities and challenges in the aviation industry.
Also Read: Mexican Government Halts Accelerated Bond Repayment Plan for Canceled Airport
The U.S. government has indicated its intention to terminate the codeshare agreement between Delta Air Lines and Aeromexico, signaling a significant change in their antitrust immunity status.
This move comes as a result of recent changes made by the Mexican government at Mexico City International Airport (AICM), the busiest airport in the country.
The termination of the codeshare agreement means that the two airlines will no longer be able to coordinate their flight schedules, offer joint fares, or share revenue on certain routes.
The decision by the U.S. government reflects a shift in their stance on antitrust immunity, indicating a desire to promote competition and ensure a level playing field in the airline industry.
This move will likely have implications for both Delta and Aeromexico, as they will need to reevaluate their strategies and partnerships in light of this change.
Mexican Government’s Airport Overhaul Sparks Discontent: Impact on Delta and Aeromexico Partnership
The recent overhaul of Mexico City International Airport by the Mexican government has sparked discontent due to its adverse impact on the partnership between Delta and Aeromexico.
Mexican officials have made significant changes at the airport, including relocating cargo flights to a newly constructed airport on the city’s outskirts and reducing slot availabilities for commercial flights at Mexico City International Airport (AICM).
These measures have drawn criticism from the U.S. Department of Transportation (DOT), which has expressed dissatisfaction with the impact on existing carriers and potential new entrants.
The Delta-Aeromexico codeshare has been particularly affected, leading to the termination of the partnership by the U.S. government.
This airport overhaul has created challenges for Delta and Aeromexico, highlighting the discontent caused by the Mexican government’s actions.
DOT’s Dissatisfaction: Grounds for Non-Renewal of Antitrust Immunity
The non-renewal of antitrust immunity by the DOT is based on its dissatisfaction with the current state of affairs between Delta and Aeromexico. The DOT’s decision not to renew the immunity is pending a final ruling, and if implemented, Delta and Aeromexico would have until October 26 to wind down their joint venture.
This immunity allows the airlines to sell seats on each other’s flights through a codeshare arrangement, which has been a key aspect of their partnership. However, the DOT’s dissatisfaction suggests that there may be issues or concerns regarding the current arrangement between the two airlines.
While the specific grounds for the non-renewal have not been explicitly stated, it is clear that the DOT is not satisfied with the current situation and is seeking a change in the relationship between Delta and Aeromexico.
Airline Responses and Government Discord: Delta’s Review and Mexican Silence
Delta is currently reviewing the DOT’s decision regarding the non-renewal of antitrust immunity, while Aeromexico’s response is still pending. The discord between U.S. authorities, carriers, and industry advocates against the Mexican government’s actions has been palpable. The government initiatives have also disrupted plans for a joint venture between Allegiant and Viva Aerobus.
In light of these developments, the following points deserve attention:
- Delta’s review of the DOT’s decision shows their determination to understand the implications and explore potential options.
- The silence from Aeromexico leaves industry observers wondering about their stance on the matter and the potential impact on their operations.
- The discord between U.S. authorities, carriers, and the Mexican government highlights the complexities and challenges in the aviation industry, particularly with regards to codeshare arrangements and antitrust immunity.
AICM Renovations vs. International Norms: DOT Asserts Non-Compliance
Mexico’s AICM renovations have sparked a dispute with the DOT, highlighting concerns over non-compliance with international norms and bilateral agreements. The DOT asserts that it was informed by the Mexican government that no additional capacity would be added during the renovations. However, the decisions made by Mexico are seen as fundamentally non-compliant with the existing bilateral air service agreement and international norms.
Despite discussions between U.S. and Mexican officials, the Mexican transportation ministry has not yet responded to the U.S. government’s stance. This disagreement raises questions about the adherence to international standards and the impact it may have on the aviation industry.
It remains to be seen how this dispute will be resolved and whether it will have any lasting effects on the relationship between the two countries.
Conclusion Of Mexican Airport Changes Spark
The termination of the Delta-Aeromexico codeshare by the U.S. government following airport changes in Mexico highlights the dissatisfaction of the Department of Transportation (DOT) and the impact of the Mexican government’s airport overhaul.
The discord between the airlines’ responses and the silence from the Mexican government further complicates the situation. The DOT’s assertion of non-compliance with international norms regarding AICM renovations provides grounds for the non-renewal of antitrust immunity.
Our Reader’s Queries
Q1 Is Aeromexico and Delta the same thing?
A Delta and its Joint Cooperation Agreement partner, Aeromexico, are dedicated to ensuring a uniform experience for their customers during travel between the two airlines. Each year, more than 3.2 million Delta and Aeromexico customers connect across the transborder network. The emphasis is on crafting a genuinely seamless journey for passengers.
Q2 Did Delta acquire Aeromexico?
A In February 2017, Delta unveiled a proposal to acquire additional shares of Aeroméxico, potentially reaching up to 49%. Subsequently, on May 8, 2017, the joint commercial agreement became operational. Under this arrangement, the airlines collaborate on route planning and pricing for all U.S.-Mexico flights, exchanging information and jointly managing costs and profits.
Q3 What is Aeromexico owned by?
A Grupo Aeroméxico, a Mexican airline consortium, oversees both the national flag carrier, Aeromexico, and the regional carrier, Aeromexico Connect. The ownership structure includes a diverse group of private investors, alongside Fondos Banamex (a subsidiary of Citigroup) and GBM. The company’s headquarters are situated in Mexico City.