In a document dated February 20, the Ministry of Infrastructure, Communications and Transportation added that the alliance between both companies does not put competition between airlines at risk.
The Ministry of Infrastructure, Communications and Transportation told the United States Department of Transportation (DOT) that the renewal of the antitrust immunity they granted for the Aeroméxico-Delta Airlines alliance has no relation to the air transportation agreement in force between the two countries, which has not been violated at any time, and that ending its authorization in October, as preliminarily proposed, would reduce 1.5 million seats per year.
In a document dated February 20, the agency added that the alliance does not put competition between airlines at risk.
Regarding the decision to remove cargo operations from the Mexico City International Airport (AICM) and reduce operations per hour (due to saturation of terminal buildings), which according to the United States authority are actions that violate the air agreement, it was argued that the measures adopted are supported by technical analyzes carried out in the AICM, which are provided for in article 11 of the current air agreement, which refers:
“Each party will allow each airline to determine the frequency and capacity of international air transportation it offers, based on market commercial considerations. Consistent with this right, neither party shall unilaterally limit the volume of traffic, the frequency or regularity of service, or the type or types of aircraft operated by the airlines of the other party, except when required for customs, technical, operational reasons. or environmental, under uniform conditions compatible with Article 15 of the agreement.”
This article has to do with dispute resolution.
In addition to the review of the renewal of immunity for the Aeroméxico-Delta alliance, an authorization is in process in the same sense that Allegiant and VivaAerobus are in process, which would be a “great alliance” between two low-cost companies. In both cases the idea is to integrate businesses to be more efficient in costs and opening routes, for example.
There is competition
The information provided by the SICT also responds to the DOT's concern that the Mexican government recently admitted that there are no plans to renew the AICM and increase its capacities, which is why it was mentioned that there is a plan under review, although due to the current times, the final decision will be made by the next federal administration, which will begin next October.
In terms of competition, it was detailed that last year all airlines in Mexico and the United States operated 197 routes and transported 37 million passengers, although the Delta-Aeroméxico alliance operated 46 of those routes and transported seven million passengers, for so there is room for competitors to grow.
