Tuesday, May 3, 2016

Mexico Approves New Agreements with U.S. and Between Carriers

Cofece, Mexico's competition commission, yesterday approved a proposed joint venture between Aeromexico and Delta. The two airlines seek to collaborate more closely in setting prices, capacity, and schedules, and need assurance that such efforts will not be determined to violate antritrust laws. They are still waiting for the U.S. Department of Transportation (DOT) to grant immunity from U.S. antitrust laws. Cofece has conditioned its approval on the surrender of eight slots at Mexico City Airport.

The Mexican senate has also reportedly ratified the changes to the U.S.- Mexico Air Transport Agreement signed in December.  The Aeromexico-Delta JV could prove an interesting case for the DOT's antitrust immunity process. In prior cases, the DOT has relied heavily on the existence of an Open Skies agreement between the U.S. and the countries being served before granting antitrust immunity to a pending joint venture. The new U.S.-Mexico agreement, while significantly liberalized, falls short of being a full "Open Skies" agreement.


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