SkyTeam partners Delta Air Lines and Aeromexico on Tuesday
filed with the U.S. Department of Transportation an application seeking
antitrust immunity for what the carriers called a $1.5 billion United States-Mexico
joint venture, which would allow them to jointly plan services and set fares.
If approved, the JV would enable Delta and Aeromexico to
establish new nonstop transborder routes, increase capacity from New York and
Los Angeles to Mexico City and create "a cohesive hub at Los Angeles [International
Airport] serving the 10 largest West Coast-Mexico markets," according to
the carriers' filing.
The JV would be governed by a committee of "two senior
management representatives" from each carrier, which initially would meet
four times per year. Several working groups, including sales and revenue
management, would manage day-to-day operations.
Aeromexico and Delta, which already offer joint contracting to corporate clients, respectively held 14 percent and 11 percent of
full-year 2014 transborder scheduled seat capacity, according to the filing.
That trailed American Airlines' 25 percent and United Airlines' 22 percent. A
JV would serve as "a third network player with sufficient critical mass to
challenge American and United," the carriers wrote.
"Among the three major U.S. network carriers, Delta is
the only carrier without a Texas hub," they wrote. "Consequently,
unlike American and United, Delta does not have the ability to efficiently
reach important and rapidly growing secondary cities in Mexico with
short-range, smaller-gauge equipment. Establishing immunized hubs with
Aeromexico in Mexico City, Monterrey and Guadalajara will enhance service and
competition."
The carriers indicated they also would seek the approval of
Mexican antitrust authorities for the proposed joint venture.