DOT Tentatively Approves Delta / Aeromexico Joint Venture, JFK Divestitures Required

The US DOT has tentatively approved the joint venture between Delta and Aeromexico, allowing the carriers to coordinate pricing and schedules on flights between the US and Mexico. Mexico’s DOT equivalent approved the JV back in May. Any opponents to the deal can submit objections through November 30th. Approval did not come without some stipulations, including the proposed divestiture of 6 slots at JFK and 24 slots at Mexico City. Reuters reports that the ruling should provide Delta quite the competitive advantage:

Friday’s ruling “really gives Delta a huge advantage” over United Continental Holdings Inc and American Airlines Group Inc, which will be unable to compete for Mexico flights outside their major hubs, said industry consultant Robert Mann.

Last November, Delta announced its intention to up its stake in the carrier to as high as 49%-54%.


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