Lawmakers urge U.S. DoT to reverse proposed cancelation of the Joint Cooperation Agreement between Delta Air Lines and Aeromexico.

• Lawmakers tell Transportation Secretary Pete Buttigieg proposed cancellation would eliminate thousands of U.S. jobs
• Earlier, the culling of landing slots at MEX had sparked anger from airlines, industry bodies, and the U.S. government.
• The DOT said the changes harm U.S. airlines operating at the airport and would deter new market entrants.
• DoT also believe, It’s “fundamentally out of compliance with the existing bilateral air service agreement and international norms,” 

Representative Salud Carbajal (D-Calif.) led a call with 14 other Hispanic members of the U.S. House of Representatives today urging the Biden Administration to reverse course on a proposal that could significantly reduce air service between the United States and Mexico.

In January, the U.S. Department of Transportation made a proposal canceling the Joint Cooperation Agreement (JCA) between Delta Air Lines and Aeromexico, Mexico’s flagship airline.

Joint Cooperation Agreement (JCA) in Brief :

• The Delta-Aeromexico JCA was proposed to expand operations between Mexico and the United States, with over 90 daily flights between Mexico and the USA on nearly 60 routes.
• Beginning January 2024, Aeromexico planned to gradually introduce 17 new routes from seven airports in Mexico to nine destinations in the U.S.
• With the new routes and increased frequencies to current destinations, the Mexican airline planned to operate nearly 60 daily frequencies to the U.S. by July 2024, representing a 35% increase in departures compared to 2023, with a presence in 36 U.S. markets.
• Delta also planned to operate 34 daily frequencies to Mexico in July 2024, serving seven different Mexican destinations.
• The Delta -Aeromexico JCA would have delivered over 30% more seats year-over-year, widening options for passengers to travel between the U.S. and Mexico.

How the decision took shape ?

The U.S. Transportation Department (USDOT) said earlier that it has tentatively decided not to renew Delta's antitrust immunity agreement covering its partnership at Aeromexico partnership, citing the Mexican government decision to make significant changes at the country's main capital airport.

Last year, Mexico banned cargo flights at the Mexico City International Airport, citing congestion. Instead, it redirected cargo flights to Felipe Angeles International Airport (NLU), a newly constructed airport on the city’s outskirts that AMLO has said “belongs to the nation.”

The unilateral actions from Mexico could prove to be counter-productive for the existing carriers and potential new entrants, according to USDOT, which has long been unhappy with slot allocations at the airport.

U.S. officials and the airlines are not happy with the actions taken by the Mexican authorities, which according to the President Andres Manuel Lopez Obrador, are aimed at boosting low traffic at the new Felipe Angeles International Airport.

Appeal by the Lawmakers !

Rep. Carbajal and the other lawmakers, in a letter sent today to U.S Secretary of Transportation Pete Buttigieg, raise concerns that canceling the JCA could cost the U.S. economy thousands of jobs, raise prices for the millions of families who travel between Mexico and the U.S., and cause significant economic harm in communities across the United States.

“Communities across the United States and many of our constituents rely on the air service created by this partnership,” the lawmakers wrote. “Thousands of U.S. jobs will be jeopardized if international access is lost, and reduced competition will burden those traveling for both business and pleasure with more expensive airfares and less service. Cities and communities across America, with Hispanic and Latino populations in particular, will be negatively impacted.”

The lawmakers also urge Secretary Buttigieg to explore alternative options to address its policy objectives, rather than taking a step that would harm both families and businesses in their districts.

“We understand that the proposal to terminate the JCA between Delta Air Lines and Aeromexico is unrelated to the partnership itself,” the lawmakers wrote. “We respectfully request that the Administration not terminate its approval of the JCA and address its policy objectives with Mexico through direct consultation and other regulatory options if necessary.”

The letter was also signed by U.S. Representatives Nanette Barragán (D-Calif.), Yadira Caraveo (D-Colo.), Tony Cárdenas (D-Calif.), Lou Correa (D-Calif.), Adriano Espaillat (D-N.Y.), Jesús 'Chuy' García (D-Ill.), Sylvia Garcia (D-Tex.), Jimmy Gomez (D-Calif.), Vicente Gonzalez (D-Tex.), Robert Menendez (D-N.J.), Grace Napolitano (D-Calif.), Raul Ruiz (D-Calif.), Norma Torres (D-Calif), and Nydia Velázquez (D-N.Y.).

On January 29, 2024 , Delta had reacted to the U.S. Department of Transportation’s proposed cancelation saying,

Delta is deeply disappointed by the U.S. Department of Transportation’s tentative decision to terminate its approval of Delta and Aeromexico’s procompetitive Joint Cooperation Agreement. This unprecedented, regulatory overreach by the DOT will cause significant harm to consumers traveling between the U.S and Mexico.

 U.S. regulators have also suspended their review of a proposed joint venture between U.S. airline Allegiant and Mexican carrier Viva Aerobus, which would have introduced up to 250 new flights between the countries.

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