The United States Department of Transportation (DOT) has decided to cancel the joint venture between Aeromexico and Delta Air Lines' application for antitrust immunity (ATI). American Airlines supports this decision. The Mexican government's actions, such as prohibiting all-cargo flights at Mexico City Aeropuerto Internacional Benito Juárez (MEX) and reducing airport capacity, were cited in the DOT's show cause order (SCO), which was issued on January 26. The SCO highlighted non-compliance with the Open Skies agreement between the US and Mexico.
The DOT's repeated reservations with MEX's management, as well as its decision to reject the Aeromexico and Delta Air Lines joint venture's application for an extension of its ATI, were highlighted by American Airlines. The airline noted that several airlines have brought up concerns about MEX's transparent slot distribution procedures ever since the joint venture was approved in 2016.
The DOT issued an initial approval for a five-year period, but cautioned that ongoing issues with slot distribution might have an impact on the renewal procedure. When American Airlines filed to remove the five-year expiration time in July 2019, it made clear that Aeromexico and Delta Air Lines accepted these conditions but were unable to provide evidence of developments that warranted an extension.
Because of uncertainties regarding MEX's slot management, the DOT extended the deadline for submitting a new ATI application. Unfortunately, despite several extensions, the grant ended on December 21, 2021, and Aeromexico and Delta Air Lines continued to use ATI while the application was pending.
American Airlines supported the joint venture's denial of ATI and called for a prompt resolution to the DOT's concerns with the Mexican government. In contrast, Delta Air Lines has asked for an extension of four weeks, until March 8, in order to carry out a carrier poll and resolve the issues mentioned in the SCO. The carrier said that SCO finalisation will affect the relationship between the United States and Mexico and requested more time for an exhaustive examination.
The DOT has also put a halt to its investigation into another joint venture between Allegiant Air and Viva Aerobus.
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