Big news this week in the airline world. By presidential decree, Delta Air Lines must dissolve its joint venture with Aeromexico.
As of January 1, the two airlines will no longer be bound by a joint venture agreement announced in 2016.
In a press release, Delta Air Lines clarified that the dissolution of the joint venture, deemed disappointing, does not end the cooperation agreements signed between the two airlines regarding the operation of codeshare flights, the launch of attractive and exclusive joint offers, and the benefits granted to members of their loyalty programs.
However, according to the American airline: “This termination of the joint venture between the two North American airline giants will result in the loss of several jobs.”
The measure announced by the DOT stems from several years of air traffic tensions between the United States and Mexico, which reached a peak after U.S. authorities downgraded Mexico to FAA Category 2 status in an effort to deny Mexican operators the right to open new air routes between the two countries. According to U.S. authorities, Aeromexico’s expansion into U.S. skies and its large scale acquisition of slots are harming competition.
According to Sean Duffy, U.S. Secretary of Transportation: “It should also be noted that the decision to dissolve the DAL-Aeromexico joint venture was a response to measures taken by the Mexican government, including the requirement for cargo carriers, including U.S. ones, to relocate from Mexico City’s Benito Juárez Airport to other secondary airports, which according to the U.S. government, distort competition.”