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DOT "Tentatively" Orders Termination of Delta-Aeromexico JV

DOT "Tentatively" Orders Termination of Delta-Aeromexico JV

Old Jan 26, 2024, 9:24 pm
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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)
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Old Jan 27, 2024, 5:05 am
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This is GREAT news for passengers. Exactly what we have been hoping for.

Next step is to terminate JV with KLM, Air France, Virgin and Korean
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Old Jan 27, 2024, 7:36 am
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Originally Posted by smartytravel
This is GREAT news for passengers. Exactly what we have been hoping for.

Next step is to terminate JV with KLM, Air France, Virgin and Korean
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.
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Old Jan 27, 2024, 8:25 am
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Originally Posted by smartytravel
This is GREAT news for passengers. Exactly what we have been hoping for.
Next step is to terminate JV with KLM, Air France, Virgin and Korean
Why is this great news for passengers? The transatlantic JV with KLM/Air France is quite helpful to passengers.
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Old Jan 27, 2024, 8:42 am
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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.
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Old Jan 27, 2024, 8:51 am
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Originally Posted by PHXflier
Why is this great news for passengers? The transatlantic JV with KLM/Air France is quite helpful to passengers.
Erosion of competition and creation of monopolies.

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.
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Old Jan 27, 2024, 9:13 am
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Originally Posted by Global Adventurer
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.
There is no reason they can't still codeshare, they just can't collude on prices and routes.
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Old Jan 27, 2024, 9:15 am
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Originally Posted by Aliquot
There is no reason they can't still codeshare, they just can't collude on prices and routes.
I'll see come October when I plan on using Delta/Aeromexico.
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Old Jan 27, 2024, 9:21 am
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Originally Posted by PHXflier
Why is this great news for passengers? The transatlantic JV with KLM/Air France is quite helpful to passengers.
How is it helpful? Partnerships are helpful (interlining and reciprocal frequent flyer benefits), but how is eliminating competition helpful?
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Old Jan 27, 2024, 9:22 am
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Originally Posted by Global Adventurer
I'll see come October when I plan on using Delta/Aeromexico.
You will see what?
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Old Jan 27, 2024, 12:31 pm
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Originally Posted by Aliquot
How is it helpful? Partnerships are helpful (interlining and reciprocal frequent flyer benefits), but how is eliminating competition helpful?
The action would eliminate code sharing between DL and AM come (tentatively) end of October.

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
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Old Jan 27, 2024, 1:23 pm
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IF it is forced to happen, I wonder if DL would sell off their 20% stake (down from 49% pre-pandemic)?
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Old Jan 27, 2024, 4:40 pm
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Originally Posted by PHXflier
Why is this great news for passengers? The transatlantic JV with KLM/Air France is quite helpful to passengers.
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.
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Old Jan 27, 2024, 4:58 pm
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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.
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Old Jan 27, 2024, 5:13 pm
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Originally Posted by james318
IF it is forced to happen, I wonder if DL would sell off their 20% stake (down from 49% pre-pandemic)?
I can't see how the US govt could force that. Setting that aside, given macroeconomic factors and the propensity of Latin American airlines to fall into ch. 11, I can't imagine DL's stake is worth what they would be willing to sell it for.

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?
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