Delta and AeroMexico, the #3 and #4 carriers between the U.S. and Mexico, have been given U.S. government approval for a joint venture that will make them the #1 carrier, with more than 25% of the business.
The approval allows the two airlines to coordinate schedules, pricing and other details; essentially to operate as a single airline on those routes. Similar arrangements exist elsewhere, such as the American/British Air trans-atlantic operations. The approval becomes permanent in about a month, after period for comments and objections.
As part of the deal, the two airlines will have to give up a number of slot pairs at Mexico City and JFK, to keep service at those airports open to others and to new entrants. It’s not likely that either airline will feel very cramped by it, since the joint operation will allow them to reduce flights that compete with each other.
The combined figure for the two airlines last year was 6.8 million of 26.6 million passengers between the two countries. American carried just under 6 million and United nearly 5.4 million.
Smaller competing carriers, including JetBlue and Southwest called for more slot pairs to be opened to competitors, and for U.S. airlines, rather than Mexican, be given preference for the opened slots. Travelers United, a consumer advocacy group, objected to the agreement altogether, saying it would reduce competition and lead to higher fares.
