Aeromexico and Delta Airlines have confirmed today that they have completed all required steps to inaugurate their joint venture, allowing the two carriers to coordinate fares and schedules across the U.S.-Mexico border. The two SkyTeam Alliance members will also be able to mutually sell tickets in the market. This partnership is the first immunized transborder alliance between airlines in Mexico and the U.S. Executives for both airlines say that, through concurrent service and scheduling, customers of both airlines will benefit.

“This is special, this is the first short-haul, high-frequency joint venture in the world today,” said Anko van der Werff, chief revenue officer at Aeromexico.

“The ability to cooperate fully with Aeromexico brings additional competition to one of the most dynamic transborder markets in the world,” said Ed Bastian, Delta’s CEO.

Delta plans to provide service between Mexico and the U.S. through its hubs in Atlanta, Detroit, Los Angeles, Minneapolis-St. Paul, New York, Salt Lake City, and Seattle. Aeromexico will then allow passengers to connect to and from Delta flights at its Mexican hubs in Mexico City, Monterrey, and Guadalajara.

This partnership allows Delta and Aeromexico to dominate the U.S.-Mexico market, as the two airlines will collectively operate 22% of flights between the two countries. The closest airline to them is American Airlines, which was has an 18.7% share of the market.

This partnership comes after 23 years of close ties between the airlines. The two carriers initiated their first codeshare in 1994. Delta is also a minority shareholder in Aeromexico. The airline currently owns 36% of its Mexican counterpart. Delta says that they hope to soon raise their stake to 49%.

“Ultimately, it’s to have more network connections, better timed connections, and sometimes more frequencies,” said Steve Sear, president of Delta’s international division. “It helps both of our networks perform better.”

Aeromexico recently moved to terminal 4 at New York John F Kennedy Airport (JFK), which is the same terminal that Delta operates out of. Delta plans to move to terminals 2 and 3 at LAX by the 17th of may, as these are the terminals out of which Aeromexico operates.

Categories: Industry Talk