DOT "Tentatively" Orders Termination of Delta-Aeromexico JV
#1
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DOT "Tentatively" Orders Termination of Delta-Aeromexico JV
I can't find the actual decision on line, but here is a Reuters story that discusses this action. This appears to be Delta getting caught up in a dispute between the USA and Mexico over the new Felipe Angeles airport north of Mexico City.
U.S. scraps Delta-Aeromexico tie-up, citing Mexico interference at capital airport (msn.com)
U.S. scraps Delta-Aeromexico tie-up, citing Mexico interference at capital airport (msn.com)
#3
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I liked the code share. It really worked well during the pandemic when Aeromexico continued serving food and drinks while Delta served cookies and water in a plastic bag and all the flight attendants stood behind the curtain in the galley.
#4
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#5
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Fortunately for Delta, the reconsideration and appeals process should allow it to delay the effective date of this decision for quite a while.
#6
Join Date: Apr 2019
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What follows are price gouging, reduction of service, bigger political power to continue reducing competition. All of these things have very bad consequences on consumers.
#7
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There is no reason they can't still codeshare, they just can't collude on prices and routes.
#8
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#9
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#11
Join Date: Jun 2004
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That said, I think this is all just pressure and negotiating over gates and such. I doubt it will actually happen.
EDIT: I take back the first line. After reading the actual DOT decision it just says they have to restructure codeshare agreements to be consistent with arms length agreements if the partnership is canceled. Still think it is not actually going to happen thuigh.
Last edited by exwannabe; Jan 27, 2024 at 3:34 pm
#13
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You see the negative effects when searching transatlantic J fares. For the most part, all airlines within each JV price out roughly the same… and then there are the outliers (like SAS… soon to be absorbed into the SkyTeam JV) which are often cheaper.
#14
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Last thing I want to ever do again is get a ticket on AM plates if a DL option for the same flight is available. If anything goes sideways, I'd much rather deal with my rights on a DL ticket issued in the USA. So long as there's an option to purchase via DL, I'm good. JV should not be necessary for that.
#15
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Maybe this is me being short sighted, but I think I'd rather see an AM that isn't chained to DL for pricing routes out of the US. Who doesn't love a good AM MQD run?