US: Delta-Aeromexico venture tentatively approved

Delta Air Lines Inc. and Aeromexico can set prices and coordinate schedules for their US-Mexico flights, but they must free up certain airport slots to bolster competition, the US Transportation Department tentatively ruled on Friday.

The decision paves the way for the two companies to dominate the second-busiest market for travel to or from the United States. It comes after the US airline industry has consolidated, with carriers operating more efficient itineraries and having more power to raise fares on some routes.

Opponents of the tentative ruling, which lets the airlines cooperate with immunity from US antitrust law, have until Nov. 30 to raise objections.

The department said the decision benefits the public because Delta and Grupo Aeromexico can plan shorter layovers, increase flights and offer more destinations. The US government has approved similar arrangements for many other airlines.

However, the department has proposed that the carriers divest 24 takeoff and landing slots in Mexico City and six at New York’s John F. Kennedy International Airport to give budget airlines room to add flights.

Full Content: Reuters

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