Delta and Aeromexico will Pay High Price for Antitrust Immunity
Skift Take
The terms aren't as generous as Delta wanted, but the carrier still should be able to get plenty out of its partnership with Mexico's only full-service airline.
Delta Air Lines will pursue its joint venture with Aeromexico, allowing the two airlines to collude, legally, on prices and schedules, with the carriers agreeing to meet unusual conditions for the deal set by the U.S. Department of Transportation.
For passengers, the arrangement means Delta and Aeromexico essentially will operate as one on cross-border flights. They will set fares, share revenue, and align schedules to ensure more travelers can make connections. In addition, Aeromexico and Delta will co-locate at airports where possible.
Delta is also preparing to increase its ownership stake in Aeromexico to 49 percent. Its cash tender offer was announced last year, and is on schedule, Delta said Wednesday.
Joint ventures, immune to antitrust laws, are not new. Delta has several, including two joint businesses across the Atlantic — with Air France-KLM,
