Summary
- Delta and Aeromexico have filed a motion for an extension to the DOT’s decision to revoke antitrust immunity provisions for his or her interline agreement.
- The present agreement allows each carriers to coordinate fares and schedules, making passengers’ lives easier in the method.
- The Department of Transportation had initially rejected the renewal of their Joint Cooperation Agreement resulting from concerns about reduced market competition.
On 30 January 2024, Delta Air Lines and Aeromexico filed a motion to the Department of Transportation (DOT) for an extension to the antitrust immunity provisions that allow the 2 carriers’ interline agreement. As reported by Easy Flying, the DOT had initially rejected the 2 airlines’ application to renew their Joint Cooperation Agreement (JCA) on 26 January.
The agreement, which allows Delta and Aeromexico to coordinate schedules and fares, allows for passengers to more efficiently find flights that fit their needs and may often book journeys on multiple airlines with only one ticket. Prior to the ruling, the 2 carriers were preparing to expand connectivity between the USA and Mexico.
In accordance with documents from the DOT, recent developments at Mexico City International Airport (MEX) have led to fit reductions for business airlines. Consequently, the continuation of Delta and Aeromexico’s JCA would likely come on the detriment of other airlines and reduce market competition.
Motion specifics
The motion was jointly filed by Peter W. Carter, Delta’s Executive Vice President of External Affairs, and Andres Conesa Labastida, Aeromexico’s Chief Executive Officer. Specifically, the pair of airlines are asking for an alteration to the timeline for which the DOT has set for the ruling to be finalized.
Photo: Carlos Yudica I Shutterstock
The federal government agency had scheduled the present provisional decision to be filed completely by 9 February. The 2 carriers, that are looking for an extension to this deadline, have requested a brand new date of 8 March.
One among the carriers’ key concerns regarding the agreement’s termination is the disruption of current traffic flows that exist across the US-Mexico border. Specifically, the carriers’ motion states as follows:
“The Department made quite a lot of tentative findings and conclusions within the Show Cause Order which, if finalized as proposed, would have a far-reaching impact on the U.S.-Mexico relationship.”
Why the extension?
With a further month, each Delta and Aeromexico imagine that they’ll find a way to assuage nearly all of concerns that led to the DOT’s ruling in the primary place. Within the statement, each airlines demonstrated their intention to survey representatives of other carriers with the intention to discover whether players within the industry agree with the department’s decision.
Photo: Markus Mainka | Shutterstock
While it stays unknown whether such a survey could prove fruitful, should an industry consensus be reached regarding the fair nature of JCA, the DOT could possibly be pushed to reconsider its decision. In accordance with Aviation Week, the DOT’s primary concerns regard the Mexican government’s increasingly tight control on the nation’s largest airport, which it believes is able to forestall any latest entrants should current agreements remain in pace.
In accordance with Reuters, the 2 airlines would have until 26 October to bring the agreement to a whole end. Consequently, traffic disruptions shall be as minimal as possible, and the overwhelming majority of those that have already booked tickets under the present JCA won’t be affected.
Photo: TamasV | Shutterstock
This doesn’t stand because the only recent move by the US government to forestall corporate cooperation and consolidation within the aviation industry. Just last week, a US federal judge moved to dam JetBlue’s acquisition of Spirit Airlines.