Summary
- Mexican government defended the ATI renewal for the Aeromexico – Delta Air Lines partnership.
- It said that the reduction of capability at MEX was justified and doesn’t violate any US-Mexico agreements.
- The termination of the agreement risks 1.5M seats annually within the US-Mexico market.
The US Department of Transportation (DOT) has revealed in a filing that the Mexican government argued against the DOT’s decision to not renew the antitrust immunity (ATI) for the Aeromexico – Delta Air Lines partnership, with the latter state saying that the renewal of the ATI and the 2 countries’ air transport agreement being two separate matters.
Providing counter-arguments to the DOT
When the DOT said that it might not grant ATI to the Aeromexico and Delta Air Lines partnership, essentially ending the Joint Cooperation Agreement (JCA), the Department argued that the Mexican government violated the liberalized Air Transport Agreement between the US and Mexico.
In response, the Mexican government’s presentation said that its measures to cut back capability at Mexico City International Airport (MEX) don’t violate the agreement and that data from a technical evaluation of MEX backed them up.
Photo: LukeandKarla.Travel | Shutterstock
Moreover, the federal government defended its decision to maneuver away all cargo operations from MEX to Mexico City Felipe Ángeles International Airport (NLU), saying that the move has only impacted all-cargo airlines and benefitted operators.
Directly addressing the incontrovertible fact that the capability reductions would affect competition at MEX, the presentation argued that the measures the federal government has taken up to now haven’t resulted in slower growth of US-based airlines in Mexico while also adding that it was still reviewing a plant to grow capability at MEX.
Comparing traffic numbers between 2016 and 2023, the Mexican government said that in 2016, 33 million passengers traveled between the US and Mexico, growing to 44 million by 2023. The JCA operated 25% of the 174 routes in 2016 and 23% of the 197 routes in 2023, representing 19% of the overall variety of passengers carried between the 2 countries in 2016 and 2023.
![An Aeromexico Connect Embraer E190 and Delta Air Lines Boeing 717-200 at Los Angeles International Airport.](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/01/shutterstock_1497571445-1.jpg)
USDOT Orders Delta And Aeromexico To Sever Transborder Ties
The choice, which is subject to finalization, only allows the airlines to proceed their partnership through the following IATA traffic season.
Risking 18 routes
While each airlines outlined that ending their agreement would put 21 routes in danger, including 16 that weren’t operated by every other airline, the Mexican government identified 18 itineraries that would end if the DOT were to finalize its decision. The presentation noted that Aeromexico operated most non-stop flights that were in danger.
In its closing arguments, the Mexican government provided 4 short conclusions, starting with the incontrovertible fact that the renewal of the ATI to the JCA was independent of the Air Transport Agreement. Secondly, the agreement was neither violated nor ignored, while the JCA had not risked competition nor slowed down the expansion of its competitors within the US and Mexico.
Photo: Lukas Souza | Easy Flying
Quantifying the negative impact on passengers, the Mexican government said that the termination of the Aeromexico and Delta Air Lines agreement would remove 1.5 million seats from the US-Mexico market annually. Lastly, the federal government argued that the slot reductions complied with the International Air Transport Association (IATA) regulations.
Previously, IATA said that it rejected the capability reductions at MEX, calling for the Mexican government to hunt alternative solutions. Moreover, the association stated that the choice would lead to Mexico failing to comply with its international aviation commitments.
![An Aeromexico-Plane (ERJ-190) is waiting for take off at the Los Angeles International Airport (LAX). In the background a Delta plane lands.](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/02/shutterstock_1497571445-2.jpg)
16 US-Mexico Routes At Risk Of Cancelation If DOT Shuts Down Delta-Aeromexico Joint Enterprise
Of the 21 routes susceptible to being cut this fall, sixteen should not served by every other carriers.
American Airlines siding with the DOT
In one other previous filing, American Airlines said that the DOT was right in terminating the JCA, arguing that the Mexican Government’s actions violated the 2 countries’ air agreement. The carrier added that each Aeromexico and Delta Air Lines have benefitted from ATI despite the DOT raising alarms about how the federal government managed MEX.
![American Airlines Boeing 737-800 landing at Dallas Fort Worth International Airport DFW shutterstock_2418144695](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/02/american-airlines-boeing-737-800-landing-at-dallas-fort-worth-international-airport-dfw-shutterstock_2418144695.jpg)
American Airlines Sides With The DOT In Ending The Aeromexico-Delta Air Lines Joint Enterprise
American Airlines said that the DOJ should use all of its tools to make sure that Mexico was allocating slots at MEX fairly.