This week’s featured link:
Final Order: Joint Application of DELTA AIR LINES, INC., AEROVIAS DE MEXICO, S.A. DE C.V. Under 49 U.S.C. §§ 41308 and 41309 for Approval of and Antitrust Immunity for Alliance Agreements – Regulations.gov
The Department of Transportation has finalized its order that if Delta and Aeromexico want an immunized joint venture, they’ll have to give up 4 slot pairs at JFK, 24 slot pairs in Mexico City, and on top of that it’ll only be valid for 5 years. Those are some pretty steep conditions (and the Mexican government wasn’t too pleased). Now we wait to see if the airlines are really willing to accept this. It seems like it would be very hard justify such a giveback.
Two for the road:
WestJet Christmas Miracle: Fort McMurray Strong – YouTube
Oh WestJet, you guys are just so good at this. Another great Christmas surprise from the kings. Watch it here:
FAA declines to allow cranes at Inglewood construction site – NBC Sports
Apparently the Rams’ inability to play like a professional football team has others looking to take advantage of the vulnerability. The FAA is stepping up and getting ready to throw down over construction of the new stadium for the team.
8 comments on “3 Links I Love: Mexico Decision, WestJet Does Christmas Right, FAA vs. the Rams”
According to CAPA (May 2016) Aeromexico controls about 42% of the capacity at Benito Juarez, which is congested. Delta brings another 1.5%, but perhaps more importantly none of the other alliances have even 10% there. LCCs are a growing source of competition but not in the big international routings that Delta and Aeromexico would dominate, so it is not shocking that there would be conditions to promote competition.
Thanks for sharing the Westjet Christmas Miracle link with us. It brought tears to my eyes – which doesn’t happen often – especially when you’re associated with airlines!!
A brilliant expression of kindness and compassion – which again you don’t often associate with our airline friends. Well done WestJet.
Best wishes for the Holidays from the UK.
I can see the U.S. saying DL/AM must give up slots in the USA, but what right do they have to say slots must be given up in Mexico City and uneven number. That’s up to Mexico to decide what happens in Mexico, not the USA.
I was going to chime in with the same thoughts, but I guess the DOT can do what it wants.
Probably the same reason why regulators of many countries generally have to approve the merger of companies operating internationally.
DOT has the right to approve or reject the merger based on whatever criteria they want. They cannot force any airline to do anything in Mexico, of course, but this would be a voluntary agreement.
Thanks for the WestJet video share. I agree with the commenter above, very poignant.
AM and DL have accepted the Mexican and US gov’t conditions but what was noted above is that part of the slot divestitures are conditioned on competitors NOT being able to gain slots. AM and DL say there are slots that are available and the DOT agreed that the slot divestitures can be broken into two groups over a couple years; about half of the slots may never be divested if competitors actually can obtain slots on their own.
DL is also moving forward with its plan to purchase up to 49% of AeroMexico which now makes two global carriers in which DL has a joint venture and owns/will own nearly half of the carrier.