Regulators Clear Delta, Aeromexico Joint Cooperation Agreement

Delta aircraft

The new joint cooperation agreement (JCA) between Delta and Aeromexico has taken another step forward. In a written statement the two airlines said that they have confirmed with the U.S. Department of Transportation (DOT) and Mexico’s Federal Economic Competition Commission (COFECE) that they have completed the steps required to launch the JCA.

The new partnership on transborder flights between the United States and Mexico will allow the two carriers to serve new destinations, as well as add additional service and create more convenient schedules, the two airlines said. It will also see the two airlines begin to invest in airport facilities, boarding gates and lounges, as well as to implement joint sales and marketing initiatives in both countries.

Delta will provide service in the United States through its connecting hubs in Atlanta, Detroit, Los Angeles, Minneapolis-St. Paul, New York, Salt Lake City and Seattle. Aeromexico will offer greater access to Mexico through its hubs in Mexico City, Monterrey and Guadalajara.

Delta and Aeromexico launched their first codeshare agreement together in 1994. In 2011, Delta entered into an enhanced commercial agreement with Aeromexico, and in 2012, Delta invested USD$65 million in shares of Grupo Aeroméxico, the parent company of Aeromexico. In 2015, Delta and Aeromexico filed an application with the U.S. Department of Transportation and the Mexican Federal Economic Competition Commission (COFECE) seeking approval of the JCA covering transborder flights between the United States and Mexico. In 2016, both airlines accepted the conditions set by the authorities, and in 2017, they implemented the actions necessary to comply with the required remedies.

In March 2017, Delta completed a cash tender offer to acquire 32 percent of Grupo Aeromexico. With the completion of the tender offer, Delta owns 36.2 percent of the outstanding shares of Grupo Aeromexico and holds options to acquire an additional 12.8 percent for a total of 49 percent of the outstanding shares of Grupo Aeromexico.

Visit www.aeromexico.com and www.delta.com