Delta and Aeromexico both belong to SkyTeam, and Delta also owns a stake in Aeromexico. Not only that, but the two airlines have antitrust immunity for transborder flights between the United States and Mexico. Unfortunately for the airlines, that won’t be the case for long — this will be ending in late 2024, as US regulators are refusing to renew the agreement…
In this post:
Delta & Aeromexico losing antitrust immunity
The United States Department of Transportation (DOT) has revealed that it doesn’t intend to renew the antitrust immunity that Delta and Aeromexico have had since 2016, which allows the two airlines to coordinate schedules and fares on transborder flights.
To be clear, the airlines can still partner — there’s nothing preventing the airlines from offering reciprocal perks for loyalty program members, for example — but they just can’t act as one entity between the United States and Mexico in terms of pricing and scheduling. Delta and Aeromexico have until the end of the IATA summer 2024 schedule to wind down their partnership, so that gives them until October 26, 2024.
Why is the DOT suddenly blocking this close partnership? The DOT is blaming this on actions taken by the government of Mexico in relation to Mexico City Benito Juárez International Airport (MEX), which is Mexico’s largest and most important airport.
How Mexico City Airport is at the center of this drama
The DOT has claimed that Mexico’s process of awarding slots at Mexico City Airport has long been opaque and anticompetitive, and that Aeromexico (as the largest airline there), was the primary beneficiary. The DOT claims that due to anticompetitive rules and insufficient enforcement, Aeromexico has been able to underutilize its slot portfolio, which simultaneously keeping slots out of the hands of competitors.
While the government of Mexico committed to adopting regulatory changes to improve the predictability and transparency of its slot allocation process, that hasn’t happened.
It gets even worse than that, though. More recently, the government of Mexico has banned all cargo operations from Mexico City Airport, and has also reduced capacity at the airport over the last three IATA traffic seasons, to the detriment of both current air carriers and potential new entrants.
The government has justified these flight reductions by claiming that they’re needed for the airport to undergo a significant renovation. However, the government has also conceded that no such construction plans exist, yet it still won’t allow additional capacity at the airport, meaning existing airlines can’t add service, and new entrants can’t enter the market.
It sure seems to me like the primary motive of the government of Mexico is to continue pushing operations to the less desirable Mexico City Felipe Angeles International Airport (NLU). But that airport hasn’t been gaining traction in the same way the government has hoped, which is why it’s also important that competitors maintain access to the city’s main airport.
Bottom line
US regulators have informed Delta and Aeromexico that their antitrust immunity won’t be renewed as of October 2024. This is because of Mexico’s baseless restrictions at Mexico City Airport, which disproportionately help Aeromexico, while hurting other airlines.
Ultimately these kinds of close partnerships between airlines need to be renewed on an ongoing basis, and regulators can consider if they’re still good for consumers. I think the DOT is right here, in terms of the arrangement between the two carriers not necessarily being good for consumers anymore.
As I said above, this doesn’t mean that Delta and Aeromexico have to end their partnership. Rather, they just can’t coordinate schedules and fares, and will have to act as competitors in the market.
What do you make of Delta and Aeromexico losing antitrust immunity?
I can’t stand either airline. Used Aeromexico at least 2 times (had no other choice), airline DELTA.
Aeromexico - answers quick but don’t explain things. SOME agents more educated than others. They tried to charge me more for a one-way then round trip. They blame Delta & tell me to call them for certain things.
Delta- charge cheaper buying direct . BUT (1) hr wait time to get agent on line. Just like...
I can’t stand either airline. Used Aeromexico at least 2 times (had no other choice), airline DELTA.
Aeromexico - answers quick but don’t explain things. SOME agents more educated than others. They tried to charge me more for a one-way then round trip. They blame Delta & tell me to call them for certain things.
Delta- charge cheaper buying direct . BUT (1) hr wait time to get agent on line. Just like Aeromexico they like to blame Aeromexico for certain things & ask me to call them.
I can go on & on, but my experience has not been good. Basically going back/fourth between airlines.
I stumbled upon this article because we use these airlines in off - season. Then I go to comments and...Who are you people with your little He said- He said ?!
Australia does exactly the same with SYD airport. The government protects Qantas and doesn’t allow other airlines (Qatar) to fly more frequently into SYD. Meanwhile, Qantas cancels flights almost daily, but maintains its number of slots… every county does it!
except Australia has true Open Skies with a number of countries including the US and has not denied requests from US carriers for more slots.
The reason Australia - at QF's lead - has limited access by the Middle East carriers - is because the ME carriers have very small local markets but take disproportionately large amounts of share.
MEX is a mess. The cancellation of the new airport was a monumentally stupid thing to do given MEX's congestion. Perhaps the failure of the new Mexicana and if Sheinbaum wins, CDMX might get a new proper airport solution.
considering how quickly everything turned regarding aviation when AMLO took over, you have to hope that things will change just as fast w/ a new face - but I am not certain he is at risk of losing his grip
Wow, brutal blow for DL, unfortunate that they didn't have a strategy to avoid this outcome.
no airline can overcome government regulations and decisions.
Allegiant also was denied the ability to start a JV - which Ben has actually covered.
And, again, DL can still codeshare. DL has flown a number of MEX routes during the time that it could not put its code on AM flights due to Mexico's FAA rating.
DL is more than familiar with how to operate with a less-than-optimal relationship with AM.
...
no airline can overcome government regulations and decisions.
Allegiant also was denied the ability to start a JV - which Ben has actually covered.
And, again, DL can still codeshare. DL has flown a number of MEX routes during the time that it could not put its code on AM flights due to Mexico's FAA rating.
DL is more than familiar with how to operate with a less-than-optimal relationship with AM.
And DL has the Latam joint venture which is delivering more and has enormously more potential
No other US carrier has anything close in Latin America and DL is using the JV to grow its and LA's presence.
The only piece that DL does not have with its own metal or via a JV is Central America and DL still has a decent presence there - and can and will grow there.
I fly Aeromexico and Delta alot as a diamond. I'm glad to see this - - while they have the "alliance" to collude on fares... they act as sperate airlines. For example, Aeromexico schedule change 4 days prior to my flight from Mia to South America... they moved me to fly the next day and would not simply put me on a delta flight (note - - full fare biz class). Ditto with Delta but less extream (no flights into QRO). Hopefully lower fares with competition.
Is this like Japanese government deliberately reduced the number of slots at Haneda and forcing airlines to move to Narita and US DoT is not happy to keep JL/AA and NH/UA JV to continue?
the point is similar... US carriers are subject to the whims of foreign governments.
The Japanese made the decision to open HND but not allow DL to move its beyond Tokyo flights so DL made the decision to move its US-Tokyo flights to HND and essentially move its connecting operation to ICN via the JV KE. Those that talk about how large UA is at NRT would love to dismiss ICN but it serves...
the point is similar... US carriers are subject to the whims of foreign governments.
The Japanese made the decision to open HND but not allow DL to move its beyond Tokyo flights so DL made the decision to move its US-Tokyo flights to HND and essentially move its connecting operation to ICN via the JV KE. Those that talk about how large UA is at NRT would love to dismiss ICN but it serves the same purpose for DL as NRT does for UA.
And I can assure you that the local market in Seoul is now larger than it is at NRT because the local Tokyo market is increasingly flying from HND.
The Mexican government is doing its thing and it will cost US carrier JVs to Mexico. Allegiant got denied as well.
Mexico is still a much smaller part of Latin America than the rest of Latin America.
DL has already overtaken NYC and LAX to S. America from both NYC and LAX between its own and Latam's flights. They are going to keep building. And DL flew alot of MEX flights on its own metal while Mexico did not meet FAA standards so DL could not codeshare on AM flights.
DL will be fine in MEX with a simple codeshare.
The bigger part of Latin America is covered under the LA JV and DL is very rapidly growing its presence and will overtake UA very soon.
DL adapted to the Japanese government and will adapt to the Mexican government's decisions.
Oh course Tim Dunn spins it as a positive. What a joker.
where did I spin anything as positive?
I simply said this was to be expected and the Latam partnership is worth more.
once again, nice to know that I am more on the minds of Ben's readers than their interest in the article itself.
This move isn't a surprise for the very reasons that Ben noted.
I also wouldn't be surprised if AM and DL file to exclude MEX from the JV but retain it in other markets including the new Mexico City airport.
and to add, the LATAM partnership has not only more potential but is delivering more for Delta right now.
Yuh time 2 create LATAM Mexico and dump Aeromexico amirite??
In all seriousness, MEX is the busiest airport in all of Mexico. Excluding it from the JV would be monumentally stupid, as NLU is further away from Mexico City than MEX, and thus would likely attract more LLCs than FSCs. MEX is way closer to the CBD of Mexico City, and thus suited to more high-revenue travel
I realize that but no airline is going to have a JV w/ any airline that operates at MEX.
Salvaging what you can makes sense.
And, as Ben noted, DL and AM can still codeshare.
The Mexican government has been on a warpath w/ the free market in aviation. this isn't really a surprise decision.
Not a surprise but overall disappointing. Though LATAM is much more valuable. Before too long LATAM will be omnipresent everywhere but Mexico, and anywhere in Mexico worth serving and contributing much to the DL bottom line they will serve with their own metal. I am guessing that in the DL/AM JV that AM will lose most from its ending.
actually, DL will have to fly to Argentina because the JV doesn't include it.
DL and LA are splitting growth to other S. American countries - as they should.
LA will not fly to Central America and it is not included in the JV
DL will start flights from MIA to Latin America this coming winter.
DL has a pretty good track record of picking off markets from AA. MIA is the crown...
actually, DL will have to fly to Argentina because the JV doesn't include it.
DL and LA are splitting growth to other S. American countries - as they should.
LA will not fly to Central America and it is not included in the JV
DL will start flights from MIA to Latin America this coming winter.
DL has a pretty good track record of picking off markets from AA. MIA is the crown jewel. The DL-Latam JV is the mechanism by which DL will finally be able to grow its network in Latin America to a position to challenge AA.
so, yes, losing the JV w/ AM is a pain but LA offers far more potential
That didn’t take long
You go off Tim. Honestly regardless of what you say, everyone has to admit that you live in their heads rent free, while you stay unbothered king
I do have fun watching them skirm. and, yes, I am still king.
Believe you were looking for the word “Squirm”, Tim unless you were looking to take up fencing with other posters ;)
Nice to see your fake guest name posts trying to make yourself look better are alive and well :)
It really is amusing that you’re proud that other posters find your posts to be so laughable that they wait to see your propaganda nonsense come out for their daily laugh. That isn’t something your average person would be proud of
you can't even admit that you mistyped something and blame it on internet problems so I don't expect you will ever admit that anyone else - esp. me - is right about Latin America but DL has overtaken AA and UA from NYC and LAX to Latin America, is on the verge of doing it to all of Latin America compared to UA, and is gunning for AA in MIA.
Losing Latam was a...
you can't even admit that you mistyped something and blame it on internet problems so I don't expect you will ever admit that anyone else - esp. me - is right about Latin America but DL has overtaken AA and UA from NYC and LAX to Latin America, is on the verge of doing it to all of Latin America compared to UA, and is gunning for AA in MIA.
Losing Latam was a huge blow to AA; UA never had a chance of competing against whatever carrier ended up w/ LA but DL got the upper hand.
You will see in the next few years now significant the DL-LA partnership is.
Losing a JV w/ AM is small potatoes in comparison.
lol. You don't know much about AA if you think losing LATAM was viewed as a loss. AA didn't need to spend $2B to make friends or build a latin network and it would've been idiotic to spend $2B to keep LATAM in OneWorld when the JV had already been denied.
...Lots you don't know about this and it shows. But everyone knows it's a lost cause to try to convince you of reality.
lol. You don't know much about AA if you think losing LATAM was viewed as a loss. AA didn't need to spend $2B to make friends or build a latin network and it would've been idiotic to spend $2B to keep LATAM in OneWorld when the JV had already been denied.
Lots you don't know about this and it shows. But everyone knows it's a lost cause to try to convince you of reality.
"DL has overtaken AA and UA from NYC and LAX to Latin America, is on the verge of doing it to all of Latin America compared to UA, and is gunning for AA in MIA."
This is just amusing if you even know anything... Delta doesn't fly a single route to South America from LAX (neither does AA anymore so of course LATAM would help with this unusual metric) and yeah... LATAM flies to JFK from a lot of places? So?
You and your Miami nonsense. Good luck finding the gates! :)
You're so amusing with your fake posts trying to make yourself look cool. Love that you don't even deny it.
reality is tough, MAX.
AA execs THEMSELVES said the loss of Latam hurt AA.
Delta's $2 billion investment will pay more than it spent.
And, you love to talk about JVs except when it involves DL's share. DL does have a good presence from LAX to Mexico and Central America on its own metal and supplements it w/ Latam's service to S. America just as takes place in NYC.
and it...
reality is tough, MAX.
AA execs THEMSELVES said the loss of Latam hurt AA.
Delta's $2 billion investment will pay more than it spent.
And, you love to talk about JVs except when it involves DL's share. DL does have a good presence from LAX to Mexico and Central America on its own metal and supplements it w/ Latam's service to S. America just as takes place in NYC.
and it doesn't change that DL flies more of its own widebodies from NYC to S. America than AA or UA.
DL IS the largest carrier from NYC and LAX to Latin America, MAX. deal w/ reality and accept it.
And DL is coming for MIA to Latin America hand in hand w/ its BFF Latam
Transcripts hurt, tim
Not what AA said lol. Then said Latam made up barely anything in their latam network
Live in your own fantasy but don’t make stuff up
Delta’s $2b is worth nothing now
Oneworld has a bigger presence from lax to Latin North America. So?
You love 20 years ago where metal matters
AAdvantage is vastly bigger than skypesos in LA and there’s a reason
You...
Transcripts hurt, tim
Not what AA said lol. Then said Latam made up barely anything in their latam network
Live in your own fantasy but don’t make stuff up
Delta’s $2b is worth nothing now
Oneworld has a bigger presence from lax to Latin North America. So?
You love 20 years ago where metal matters
AAdvantage is vastly bigger than skypesos in LA and there’s a reason
You can find random nonsense to throw at a a wall but it makes you look ill informed
It honestly is funny when you drink because you bring up Miami as a fired delta fanboy who apparently knows nothing about gates in Miami but live your dream
It’s amusing to everyone
Seriously
Get a life. You’re such a joke
AA did indeed lament the loss of Latam, MAX, whether you can accept it or not.
And no one is denying that oneworld, because of AA's share in Latin America which is 3X DL or UA's, has seen a massive share shift as Latam swung to DL - LA is not part of Skyteam but is in a JV with DL.
DL, just like it did in NYC and LAX, picked off the...
AA did indeed lament the loss of Latam, MAX, whether you can accept it or not.
And no one is denying that oneworld, because of AA's share in Latin America which is 3X DL or UA's, has seen a massive share shift as Latam swung to DL - LA is not part of Skyteam but is in a JV with DL.
DL, just like it did in NYC and LAX, picked off the top domestic markets - including JFKLAX where AA was dominant for decades and then has picked off major longhaul markets including NYC and LAX to Latin America and will be picking off a few strategic markets from MIA.
I know you fight reality and call people names when you are wrong and can't accept reality but DL through the Latam JV is providing the first real challenge to AA's dominance of Latin America and they are starting w/ their #1 position in both NYC and LAX, building off of ATL-Latin America which is where most of DL's Latin America flights originate and covers the US, and will expand it to MIA. DL will not be the dominant carrier in MIA but they are already a strong #2 there just as they are in every other AA hub where DL successfully picks off a lot of traffic from disenfranchised AA flyers and corporate accounts.
You are free to argue and belittle me but that is what is happening and will continue to happen.
Hmm... funny how the only people posting in support of Tim Dunn are posting as guests. It would seem that regular readers and regular posters would not be posting as guests. Just sayin'
you also realize that many of the people that use a continuous cycle of made up names to criticize me also post as guests?
Your theory is wrong.
None of which changes that the internet aviation crowd - of which I have interacted with for over 20 years - does not want to hear about Delta's superior strategies, esp. when they show how AA and UA are stumbling.
Let me repeat a few key...
you also realize that many of the people that use a continuous cycle of made up names to criticize me also post as guests?
Your theory is wrong.
None of which changes that the internet aviation crowd - of which I have interacted with for over 20 years - does not want to hear about Delta's superior strategies, esp. when they show how AA and UA are stumbling.
Let me repeat a few key pieces of data from 2023 earnings:
Delta earned a $4.6 billion profit on $58 billion plus of revenue, making DL's profits and revenues the highest of any airline in the world.
United earned $2.5ish in profits on $54ish in revenue but flew the most seat miles and burned the most fuel of any airline in the world.
American earned less than $1 billion in profits.
Southwest also earned less than $1 billion in profits in a rare position of not performing in the upper tier of global airlines but still has one of the best balance sheets in the industry- right up there with Ryanair.
Delta is simply the best run business among airlines in the world.
And those extra profits allow Delta to do all things of things including buy equity in other airlines even if those equity positions come w/ challenges.
Delta also is in a position to expand and grow in other carrier strength markets which is precisely what they are doing in Latin America through their Latam joint venture. The loss of the AeroMexico JV will hurt but Delta has had to live with Mexico's inability to meet FAA safety regulations and so has lost parts of the AM partnership for several years. Now, it is the JV that is at risk while codesharing is allowed.
And this all could change if the Mexican government gets the message that the world will not tolerate 3rd world interference in global systems including aviation.
Waiting for triggered Tim to respond.
He’ll explain it away… it’s actually beneficial to Delta.
You're such a loser. Imagine caring so much about one person's opinion so much you try and preempt it . Tim Dunn stays winning
Man oh man Tim lives in your head rent free about as much as President Trump lives in Democrat heads!
Wow. Tim. How late did you stay up with fake usernames to make yourself look better? Lol
And you then liked your own guest posts with your tim Dunn handle? Lol
Speaking of anonymous posters ;)
you truly can't accept that no one except the low class in which you inhabit are amused by your character assassinations - all of which are rooted in my willingness to say the truth you and others don't want to hear
Get a life, MAX.
I do admire your honesty in not denying those fake posts were from you then you liked them lol
It's amusing that you write these fake posts to yourself after some drinks, get called out, then accuse others of character assassinations because it's so obvious what you did.
again, you call anything that disagrees w/ your opinions as fake solely because you are incapable of admitting that others really do know more about the industry than you.
pathetic you are but we all know your MO and you at least you consistently use the same username so it isn't hard to track what you say.
DL has not taken over Latin American from the NYC area. Do they fly to PTY, PVR, SJO, SAL, SAP, GUA, LIR, BZE? UA does, and UA's unique NYC market list is much longer than DL's (just 3 - EZE, GIG, and KIN - I'll include Caribbean here too).
And in competing markets, like BOG, MEX, CUN, SJU, SDQ, STI, UA has equal or more daily flights. SJU even sees B767 service.
Might want to check your facts before stating that DL has "overtaken" NYC-Latin.