Cofece’s conditions won’t impact Aeromexico and Delta

The conditions established by Mexico’s Federal Economic Competition Commission (Cofece) to airline Aeromexico, in order to allow its merger to U.S. associate Delta, will have a minimum impact in the operations of both companies, according to several analysts. To complete the consolidation of these companies, and thus begin coordinating routes, capacity agreements and prices, they must give up slots (appointed take-off and landing hours) in Mexico City’s International Airport (AICM), as well as some slots along their U.S. – Mexico routes where both companies’ operations match, detailed Cofece’s representatives last Monday. About the first condition, the impact will be minor, considering that Group Aeromexico held about 48.6% of total slots scheduled at high-demand hours in AICM last 2014. On the other hand, according to research by Cofece, Delta occupied 1.4% of slots during the same year. About the second condition, Cofece is keeping open the alternative to cancel routes that coincide between these airlines in airports other than AICM. Both companies will operate only in the routes Mexico-New York – where Interjet and United Airlines have presence- and Guadalajara-Los Angeles –also operated by American Airlines, Alaska Airlines and Volaris. Aeromexico’s stock shares gained 1.4% at the closing of the market, after Cofece’ announcement.