DOT tentatively approves Delta-Aeromexico joint venture
Friday, 07 Nov, 2016
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The US department of transportation has given tentative approval for Delta Air Lines’ proposed cooperative agreement with Aeromexico but with strings attached.
The DOT has proposed the two airlines offload 24 slots at Mexico City and a further six at New York JFK to ensure budget carriers are not crowded out.
"This remedy would allow for new, competitive entry at these airports that would not otherwise be possible," DOT said.
The approval allows Delta and Aeromexico to coordinate flight schedules and fares.
The department says it is beneficial to the public as the tie-up will enable the airlines to offer more frequencies and new routes.
However opponents of the ruling have been given a deadline of November 30 to file an objection.
Also, DOT only gave approval for an initial five years as it is unclear if tthe divesting of slots will be sufficient to ensure fair competition for other carriers.
Mexican aviation regulatory framework has ‘confusing and often unwritten rules, making it extremely difficult for new entrants,’ the DOT noted.
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