National & Minnesota Report

Delta Air Lines and Aeromexico have an existing Joint Cooperation Agreement (JCA), established in 2015. The purpose is to provide a cooperative agreement between the two companies which is mutually beneficial to both parties.

In the regulation of the Air Transportation Agreement (ATA), and as is established in the Antitrust Immunity (ATI) agreement, the Department of Transportation states, as communicated via Simply Flying.

“This tentative decision is consistent with longstanding Department policy; specifically, that any alliance receiving or maintaining ATI is predicated upon a fully-applied liberalized air transport agreement, transparent market entry, and a fair and equal opportunity to compete.

“Despite DOT’s repeated warnings to Mexican counterparts, the Government of Mexico is not adhering to the 2015 U.S.-Mexico air transport agreement. As a result, we suspended our review of the Allegiant/Viva Aerobus ATI application on July 31, 2023, and we are now dismissing the Delta-Aeromexico application.”

Simple Flying previously stated, as many as 1.8 million seats are at risk of ending following the United States Department of Transportation’s announcement which is tentatively decided not to be renewed as an antitrust immunity agreement, which allowed for the joint venture between Delta and Aeromexico.

Capitalizing on an Opportunity?

In light of this pending decision, VivaAerobus and Allegiant Air are pressing for DOT to resume the examination of their Antitrust Immunity (ATI) application, following a potential reversal of the DOT’s decision to terminate Delta Air Lines and Aeroméxico’s joint cooperation agreement’s existing ATI.