ALL OF US opens Delta/Aeromexico New York and South america City remedy slot reallocation procedure

Analysis associated with schedule data from intelligence supplier OAG shows that Aeromexico and Delta Air Lines had a combined twenty-seven. 8 per cent share of chair capacity out of New York’s David F Kennedy International Airport last summer time and a 42. 2 per cent discuss at Mexico City’s Aeropuerto Internacional Benito Juá rez. The two air carriers are the largest individual operators on the airports in their home markets.

The US Department of Transport (DOT) has formally instituted the Slot Assignment Proceeding to set aside the 28 slot pairs with New York’ s John Farreneheit Kennedy International Airport and Mexico City’ s Aeropuerto Internacional Benito Juá rez which it has required Delta Air Lines and Aeromexico in order to relinquish as part of the antitrust immunity circumstances set forth for their transborder business partnership.

These, it states in formal documentation, will be supplied exclusively to low-cost carriers since it acknowledges that these operators exert the best competitive impact when entering slot-constrained markets. As such the likes of Alaska Air carriers, Allegiant Air, Frontier Airlines, Hawaii Airlines, Southwest Airlines, Spirit Air carriers, Sun Country Airlines, Virgin The united states, VivaAerobus and Volaris will be entitled to the slots, with JetBlue furthermore permitted rights in Mexico Town and Interjet in New York.

In December 2016, the US DEPARTMENT OF TRANSPORTATION granted conditional antitrust immunity towards the proposed alliance agreement between Delta and Aeromexico subject to the two service providers agreeing to meet stringent conditions pertaining to DOT approval. The antitrust defenses allows Delta and Aeromexico in order to essentially operate as one company upon cross-border flights by jointly environment fares, sharing revenues, and aiming flight schedules to ensure more holidaymakers can make flight connections. The antitrust immunity is for a five-year expression only, although subject to application to get renewal.

However , to be able to maintain level competition, the DOT’ s order requires Delta plus Aeromexico to give up 24 slot sets in Mexico City and 4 slot pairs in New York. Below its divestiture timetable these slot machine games will be allocated under a two stage process.

The first can make 14 Mexico City and 2 New York slot pairs available plus “ transferred as soon as practicable” to get operation during the summer 2017 plan. The second tranche of ten South america City and two New York slot machine games will be allocated once LCCs possess demonstrate that they have exhausted reasonable attempts to obtain slots through Mexico City’ s own slot allocation treatments. This will all be completed before summer 2018.

The particular DOT also noted that it gives preference for the four relinquished Ny slots to any LCC applications in order to serve Mexico City directly, whilst its own remedy process will satisfy the ruling from Mexico’ s Anti-monopoly Commission (COFECE), for Delta plus Aeromexico to divest eight slot machine games at Mexico City. Additionally , to be able to mitigate the impact on the connections partners, only two out of the 4 slots at New York will be divested during the peak hours between fifteen: 00 and 20: 59.

The applicants have till January 23, 2017 to publish proposals to the DOT including information such as: business plans for the transborder routes, how many slots they are asking for, at which times they want to offer the support, when and how often they intend to offer the service, and which kind of airplane they will use on the route. The US DOT says it will then rule in the applications by May 17, 2017.

“ In choosing among the proposals, the Department will certainly consider which applicant or candidates will be most likely to offer and maintain provider that will best meet the objective from the divestiture. This will include introducing competitors and price discipline in the US – Mexico City and New York – Mexico City markets, ” the particular DOT said in its formal communication.

Analysis of plan data from intelligence provider OAG shows that Aeromexico and Delta a new combined 27. 8 per cent discuss of seat capacity out of David F Kennedy International Airport last summer time and a 42. 2 per cent discuss at Aeropuerto Internacional Benito Juá rez. The two airlines are the biggest individual operators at the airports within their home markets.