Mexican antitrust regulators said Monday that they have conditioned approval of an enhanced partnership between Delta Air Lines Inc. and Mexico’s biggest carrier Grupo Aeromexico SAB to the two giving up certain takeoff and landing slots at Mexico City’s international airport and eliminating duplication of designations on cross-border routes.
The two carriers are awaiting a series of approvals for Delta to raise its stake in Aeromexico to 49% from around 17% at present.
The conditional authorization by the Mexican Competition Commission comes after the Mexican Senate recently ratified a more liberal air treaty between the U.S. and Mexico.
The airlines have also applied for US antitrust immunity to step up their joint-venture.
The commission said that under the terms proposed by the airlines, the transaction could have hindered competition on cross-border flights between Mexico and the U.S., while saturation at the Mexico City airport limits access to takeoff and landing slots for potential competing carriers.
At present, Delta exercises competitive pricing pressure on Aeromexico for flights between Mexico and the US, it added.
Aside from relinquishing some takeoff and landing slots, one of the two carriers must eliminate overlapping route designations between Mexico and the U.S., the commission said.
Aeromexico said in a release that the two airlines are evaluating the resolution and conditions imposed by Mexican regulators. Regulatory clearance by the U.S. Department of Transport is pending, Aeromexico added.
Full Content: The Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI