Transportation Department in the United States mandates an end to the alliance between Delta and Aeromexico, effective from January 1.
In a surprising turn of events, the U.S. Department of Justice (DoJ) has ordered Delta Air Lines and Aeromexico to dissolve their ten-year strategic partnership by January 1, 2023. The decision, which comes amidst concerns about anticompetitive effects in the U.S.-Mexico City market, has sparked a wave of disappointment and regret from both parties.
Delta Air Lines issued a statement expressing its disappointment with the termination of the approval of the strategic and pro-competitive partnership between Delta and Aeromexico. The airline stated that the decision will cause significant harm to U.S. jobs, communities, and consumers traveling between the U.S. and Mexico.
Aeromexico, for its part, expressed regret over the decision and highlighted the benefits the alliance brought to tourism and connectivity. The Mexican carrier stated that the order does not affect customers and that flights on each other's airline will continue. Frequent flyer program reciprocity, where customers can earn and burn miles, will also continue.
U.S. Transportation Secretary Sean P. Duffy made a statement expressing his disappointment with empty promises and called for definitive action by Mexico to level the playing field and restore fairness. Secretary Duffy's comments suggest that the DoJ's decision was driven by a desire to promote competition and prevent any potential monopolistic practices in the airline industry.
The dissolution of the strategic partnership between Delta and Aeromexico marks a significant development in the airline industry. The two carriers had formed a close alliance, with codesharing agreements and joint ventures that allowed them to offer seamless service to customers traveling between the U.S. and Mexico. The decision to dissolve the partnership raises questions about the future of transatlantic alliances and the role of regulators in ensuring a competitive and fair market.
In the coming months, both Delta and Aeromexico will need to work closely with the DoJ to ensure a smooth transition and minimise any disruptions to customers. The airline industry will be closely watching this development and its impact on competition and consumer choice in the U.S.-Mexico market.
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