Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Delta and Aeromexico seek antitrust immunity for joint venture, (Apr 1, 2015)

U.S.-based Delta Air Lines and Mexico-based Aeromexico are seeking antitrust immunity from the U.S. Department of Transportation for a proposed joint venture that would provide flights between the United States and Mexico, Delta announced yesterday.

Approval for the proposed $1.5 billion joint venture will also be sought from the Mexican antitrust authorities, the Comision Federal de Competencia Economica (Federal Economic Competition Commission). Upon receipt of the required governmental approvals, Delta and Aeromexico will seek to (1) expand opportunities to co-locate and invest in airport facilities by improving gates, lounges, and the overall connecting experience and (2) increase joint sales and marketing initiatives.

The joint venture would provide more options for travelers in both countries, Delta stated. Under the proposal, Delta will provide Aeromexico with a strong U.S. marketing presence and access to its key American hubs, such as Atlanta, Detroit, Los Angeles, Minneapolis, New York, Salt Lake City, and Seattle. Aeromexico will provide Delta with a Mexican marketing presence and access to its key Mexican hubs, such as Mexico City, Monterrey, Guadalajara, and Hermosillo.

"Mexico is the most popular international destination for Delta customers, and our proposed joint venture will offer our customers more schedule and destination choices, whether traveling for business or pleasure," said Ed Bastian, Delta's President. "Approval of antitrust immunity will allow travelers to fully benefit from all the aspects of a future Delta-Aeromexico joint venture including the combination of two complementary networks."

Companies: Delta Air Lines, Inc.; Grupo Aeromexico, S.A.B. de C.V.

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