CANAERO, an entity representing 45 companies linked to the air transport industry present in Mexico, warned that connectivity between that country and the United States will be severely affected by the decision of the Department of Transportation (DoT, for its acronym in English) to halt the joint venture between Aeroméxico and Delta Air Lines.
“There will be a serious impact on air transport users between both countries, on existing routes and frequencies, as well as employment sources, affecting millions of passengers, business development, and supply chains,” explained CANAERO.
The DoT stopped the joint venture between Aeroméxico and Delta Air Lines in response to measures taken by the Mexican government to combat congestion at the Mexico City International Airport, which included the mandatory transfer of cargo operations to the new Felipe Ángeles International Airport, the reduction of operations per hour, and the allocation of slots, among others, all of which affect competition.
That is why CANAERO urgently calls on the authorities of Mexico and the United States to thoroughly analyze the issue, prioritizing users and workers.
The entity developed in five points the benefits of the joint venture and the consequences of its cancellation (which the DoT set for October 2024 at the latest):
- Collaboration agreements between airlines allow offering users lower prices because through synergies, the companies increase operational efficiency, reduce costs, and thereby expand their network of routes, destinations, improving flight schedules, travel times, and generally the service and benefits to passengers. Aeroméxico and Delta Air Lines have served more than 45 million passengers since 2017, when this agreement began.
- Agreements like the one between these two airlines allow greater seat occupancy on each plane, which translates into lower CO2 emissions per passenger, a fundamental aspect in environmental protection.
- Thanks to healthy and free competition practices, as well as agreements between airlines, since 2017 to date, different companies have created more than 20 new routes between both countries, the seats offered went from 3.1 to 4.6 million, and passenger traffic increased by 7.5 million.
- In 2023, for example, if the most traveled routes between Mexico and the USA are considered, the actual average prices fell almost 15% compared to 2022, even though passenger traffic increased by almost 22% in the last 4 years.
- If the cancellation of the collaboration agreement between both airlines is finalized, the main affected will be the users and workers, but as a consequence, also the entire travel value chain such as routes, destinations, hotels, restaurants, travel agencies, and tour operators to name a few.
