Updated January 27th, 2024 at 08:35 IST

US ends Delta-Aeromexico deal over Mexico airport interference

In the past year, Mexican authorities implemented notable changes at AICM, including relocating cargo flights to a newer airport on the outskirts of the city.

Reported by: Business Desk
Aeroplane | Image:Pexels
Advertisement

The US government announced on Friday its intention to deny the renewal of a joint venture between Delta Airlines and Aeromexico, citing what it deemed as interference by the Mexican government in operations at Mexico's primary capital airport.

Delta and Aeromexico had plans to operate over 90 daily flights between the two countries this year under a codeshare agreement, which enables each airline to sell seats on the other's flights. 

Advertisement

The US Department of Transportation (DOT) stated in a formal government order that the airlines would be required to phase out their agreement, setting a tentative deadline of October 26.

The decision follows actions by the Mexican government impacting operations at the Mexico City International Airport (AICM).

Advertisement

The DOT expressed concerns that these actions undermined the conditions necessary for the Delta-Aeromexico partnership, citing a lack of a fully liberalized air transportation agreement consistent with US government regulations, commonly referred to as an "open skies agreement." Such agreements grant airlines greater autonomy over routes, capacity, and pricing.

In the past year, Mexican authorities implemented notable changes at AICM, including relocating cargo flights to a newer airport on the outskirts of the city. 

Advertisement

Additionally, slot availability for commercial flights at AICM was reduced as part of efforts to alleviate congestion at the busy hub and encourage operations at the new Felipe Angeles International Airport, which has yet to commence regular traffic.

(With Reuters Inputs)

Advertisement

Published January 27th, 2024 at 08:35 IST