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DOJ Backs DOT Plan to Revoke DeltaAeromexico Antitrust Immunity

The Justice Department argues that immunity should be rare, reserving it for ventures that deliver genuine consumer benefits.

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Delta Air Lines planes are seen at John F. Kennedy International Airport on the July 4th weekend in Queens, New York City, U.S., July 2, 2022. REUTERS/Andrew Kelly/File Photo
A plane of Mexican airline Aeromexico takes off from the Benito Juarez International airport in Mexico City, Mexico February 1, 2022. REUTERS/Luis Cortes/File Photo
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Overview

  • The DOJ formally endorsed the DOT’s August proposal to deny renewal of antitrust immunity for the DeltaAeromexico joint venture.
  • Both the DOT and DOJ cite restrictive access at Mexico City’s Benito Juárez airport with opaque slot allocations as having undercut competition on US–Mexico routes.
  • US and Mexican authorities are engaged in negotiations that have yet to yield a public response from Mexico on the regulators’ slot and access concerns.
  • Industry data show the joint venture controls about 20% of US–Mexico seat capacity, underscoring its significance to the transborder market.
  • If immunity is revoked, the carriers would be barred from coordinating pricing, schedules and capacity, a change that could reshape competition and service offerings.