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Delta & Aeromexico File For Joint Venture

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(@lucky)
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While the impact won't be immediate for customers, Delta and Aeromexico have filed an application with the US Department of Transportation requesting antitrust immunity for a new joint venture on flights between the US and Mexico. Via the Delta press release: "The application marks a significant step in the creation of a $1.5 billion joint…

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14 Replies
14 Replies
 Doug
(@Doug)
Joined: 12 years ago

Posts: 174

The headline should read "Enjoy crappy AeroMexico service while earning worthless Delta SkyMiles!"


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Diamond
(@alexs)
Joined: 5 years ago

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Posts: 0

You can't say Delta wasn't listening to it's customers -- We've been calling them SkyPesos for years. I guess they figured they might as well make good on the name.


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(@benjamin)
Joined: 5 years ago

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Posts: 0

Mexico is the most popular international destination for Delta customers?? Really?


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(@Chris S.)
Joined: 14 years ago

Posts: 72

@Alex, Haha.

Sounds like another stab at Alaska and their service to Mexican resort destinations.


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(@Christian)
Joined: 12 years ago

Posts: 846

I can see this as badly needed, with Delta losing gobs of money. Oh, wait...


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(@brianna-hoffner)
Joined: 5 years ago

Member
Posts: 0

LOL glad someone made the SkyPesos joke 🙂 ok but seriously, they'd better not mess with the AM's lie-flat 787 service between JFK and MEX!


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(@JoeMart)
Joined: 12 years ago

Posts: 205

So Delta's overpaid CEO's strategy is to copy Etihad's game plan. I hope the stockholders at DL feel happy with the leading from behind strategy. Copa has expanded in Latin America to the point all other carriers are running for cover. Hope Aeromexico convinces DL to redo their menus with a strong Mexican cuisine selection. It would be refreshing to experience the dozens of regional moles sauces, hand made tortillas, huevos rancheros, tequilas, and other staples to compete against the Indian centric menus of the ME3.


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(@Autolycus)
Joined: 15 years ago

Posts: 37

@JoeMart, huh? What part of this is Delta copying from the ME3? Delta has been using joint ventures for pretty much as long as they've been allowed for airlines operating in the US.


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(@Sunny)
Joined: 11 years ago

Posts: 3

Lucky, you've said it repeatedly, but could you elaborate further on your assertion that Delta the best network? I suppose its a matter of personal utility, of course. But I would argue that leaving operational issues aside, United leads in Asia and has better hubs (Washington, Chicago, and Houston being larger business centers than Detroit and Minneapolis). Meanwhile, AA owns Latin America and now thanks to US Air has a lot of flights to Europe connecting in Philly, which is cheaper and has fewer traffic problems (and slot and perimeter restrictions) than NYC area airports. Finally, a somewhat separate point- oneworld and star alliance have larger and more high quality airlines than skyteam. I'm just curious where you're coming from on this...


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(@RoloT)
Joined: 12 years ago

Posts: 85

Sunny, the last thing I want to do is defend Delta, but did you mistakenly leave out ATL when comparing United v Delta hubs? That's quite an omission.

I fly UA, AA and even som SW, but mostly Delta. If being operationally superior means getting me and my bags from point A to point B in a timely manner, then, in my humble opinion, Delta is far and away the best.


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Diamond
(@alexs)
Joined: 5 years ago

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Posts: 0

@JoeMart: "...strong Mexican cuisine selection..." on an airplane? That's a rather confined space to be eating Mexican food. At the very least, there should be no fuel surcharges on those flights. Plenty of methane to go around.


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 Nick
(@nick)
Joined: 11 years ago

Posts: 0

@JoeMart: Copa has a very specific (and successful) business model based on short to mid-haul connecting flights, but not one that will in any way substantively compete with Delta+Aeromexico, which is focused on much longer point-to-point routes.

@Sunny: I think where you fall into AA and UA's (inferior) strategy is where you say that Chicago, Washington and Houston are "better" hubs because they are bigger business centers. DL views their hubs as connecting points, and more or less their DTW, ATL, MSP and SLC hubs are in streamlined airports far less prone to delays. To me, a superior hub is one where I can connect easily, comfortably and reliably, not one that serves an ostensibly bigger city. Can you imagine using JFK as a domestic connecting hub, for instance!?

You also try to dispute Ben's argument with the caveat, "leaving operational issues aside..." which is sort of the whole point of Ben's thesis to begin with - Delta (leaving mileage programs aside) is a better operation than UA and AA.


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(@Sunny)
Joined: 11 years ago

Posts: 3

@Nick

I think that's about right, but I just wanted to see the discussion play out...


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 Tom
(@Tom)
Joined: 17 years ago

Posts: 33

No improvements can make up for the reduced competition and higher prices that will surely result. We have a lot of evidence what happens to prices when these types of things are approved. It's so anti-consumer that I am positive that it will meet with swift approval.


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