A PYMNTS Company

US: Delta-Aeromexico venture tentatively approved

 |  November 6, 2016

Delta Air Lines Inc. and Aeromexico can set prices and coordinate schedules for their US-Mexico flights, but they must free up certain airport slots to bolster competition, the US Transportation Department tentatively ruled on Friday.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The decision paves the way for the two companies to dominate the second-busiest market for travel to or from the United States. It comes after the US airline industry has consolidated, with carriers operating more efficient itineraries and having more power to raise fares on some routes.

    Opponents of the tentative ruling, which lets the airlines cooperate with immunity from US antitrust law, have until Nov. 30 to raise objections.

    The department said the decision benefits the public because Delta and Grupo Aeromexico can plan shorter layovers, increase flights and offer more destinations. The US government has approved similar arrangements for many other airlines.

    However, the department has proposed that the carriers divest 24 takeoff and landing slots in Mexico City and six at New York’s John F. Kennedy International Airport to give budget airlines room to add flights.

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.