New Wealth Daily | U.S. Ends Delta-Aeromexico Codeshare Over Mexico Airport Changes

U.S. Ends Delta-Aeromexico Codeshare Over Mexico Airport Changes

The partnership between Delta Air Lines and Aeromexico, which allowed them to sell seats on each other’s flights between Mexico and the U.S., is in jeopardy due to recent changes in Mexican airport policies. 

This codeshare agreement, which had been in place for decades, allowed passengers to book flights on both airlines under one reservation. 

Still, the U.S. Department of Transportation (DOT) has announced that it will not renew the antitrust immunity enabling the Delta-Aeromexico deal. 

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  • The Delta-Aeromexico codeshare agreement will lose antitrust immunity due to changes in Mexico’s airport.  
  • Cargo flights have been relocated and the number of passenger slots has been reduced at the Mexico City airport. 
  • As a result of this decision, flight options between the United States and Mexico will be limited.

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U.S. Ends Delta-Aeromexico Codeshare Over Mexico Airport Changes

What​​​ ​is ​a ​​Codeshare ​​Agreement​?​​​

A codeshare agreement allows airlines to sell seats on each other’s flights under a shared flight number or code. 

This ​​expands ​options ​for ​​passengers ​by allowing ​them ​to ​​book ​flights on ​multiple ​airlines ​under ​​one ​​​reservation. 

Delta and Aeromexico had planned to offer over 90 daily codeshare flights between the U.S. and Mexico this year before the DOT’s decision.

Mexico Airport Changes Raise Concerns

In 2022, the Mexican government relocated cargo flights from Mexico City International Airport to the new Felipe Angeles International Airport outside Mexico City. 

It reduced slot availabilities for commercial passenger flights at the former. 

The ​​DOT ​has ​criticized ​​these actions​, ​​stating ​that they ​negatively ​​impact existing ​carriers ​​and ​limit new ​​entrants​, violating ​international ​aviation ​​​​norms.

Why the Codeshare Agreement is Ending

The DOT has tentatively decided to end antitrust immunity, which means Delta and Aeromexico will have to compete independently in the US-Mexico market. 

They can no longer coordinate schedules, pricing, and capacity like a single business, reducing flight options between the countries. 

Consequently, the airlines must wind down joint operations by October.

Outlook: Finding a Balance for Airport Modernization and Fair Competition

Mexico is a popular destination for U.S. airlines​​, ​and ​​resolving the ​issue ​is ​​​​critical. 

While modernizing airports and alleviating congestion are worthy goals, policies must align with maintaining open access and not unfairly discriminate between carriers. 

Constructive ​​​dialogue ​and ​transparency ​from ​both ​​governments ​are ​crucial ​to ​finding ​a ​balance ​that ​modernizes ​Mexico’s ​airport ​​infrastructure while ​sustaining ​flourishing ​US-Mexico ​​aviation ​​​ties.

Stay ​​​​ahead ​of ​​​​the ​​​​​curve ​​​​with ​exclusive ​insights ​​​delivered ​​​​​​​​​​​​​straight ​​to ​​your ​​​inbox​! ​

Don’t ​​miss ​​​​out ​– ​​subscribe ​​now ​to ​​​our ​​​newsletter and ​​be ​​the ​​​first ​to ​​​know ​​about ​​the ​latest ​​developments ​​in ​​finance​​, ​real ​​estate​, ​​and ​​global ​​markets​​​. 

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