Aeromexico's US expansion continues with Tampa despite DOT pushback on crucial Delta partnership
Aeromexico is on an expansion spree in the United States, even as its vital partnership with Delta Air Lines is called into question by U.S. regulators.
The Mexican flag carrier will begin service between Tampa International Airport (TPA) and Mexico City International Airport (MEX), the airline and TPA officials said Monday.
The airline will operate the flight, which runs daily beginning July 1, on a 99-seat Embraer E190 jet.
"This new service is made possible by Aeromexico-Delta alliance, which offers more and better options to passengers in both Mexico and the United States," Aeromexico said in a press release about the new TPA flight.
Delta Air Lines owns roughly 20% of Aeromexico, and the two airlines operate a joint venture for flights between Mexico and the U.S.
Tampa will be the 23rd U.S. city served by Aeromexico, which has substantially expanded its U.S. footprint this year, opening service to Hartsfield-Jackson Atlanta International Airport (ATL), Boston Logan International Airport (BOS), McAllen International Airport (MFE) in Texas, Raleigh-Durham International Airport (RDU) in North Carolina and Dulles International Airport (IAD) near Washington, D.C.
The expansion has come, however, as Aeromexico faces pushback from the U.S. Department of Transportation over its close partnership with Atlanta-based Delta.
Delta-Aeromexico joint venture: Delta doubles down on pre-pandemic international airline investment strategy
Last month, the DOT said that it tentatively would not renew its approval of the airlines' antitrust immunity agreement, a move that would force the airlines to unwind the joint venture and reconsider how they operate and coexist.
The DOT cited steps taken by the Mexican government at MEX in its rejection of ongoing antitrust immunity for the two airlines, arguing that Mexico's governing of takeoff and landing slots at MEX has been "opaque and anti-competitive," giving Aeromexico an advantage over new-entrant airlines.
The U.S. regulator also said that the Mexican government had cut air cargo operations at MEX amid falling flight capacity numbers due to infrastructure problems at the airport, with renovations needed to handle a greater number of flights.
"However," the DOT said, "the Mexican Government has more recently conceded that no such construction plans exist."
In a filing with the DOT late last week, Delta sharply objected to the DOT's order, arguing that fares would increase and "$800 million in annual consumer benefits would evaporate."
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"Nearly two dozen routes between the United States and Mexico would be at risk of cancellation and capacity would be reduced, with large narrowbody aircraft to be replaced with smaller aircraft on at least ten other routes," Delta said in the filing.
"Perversely, consumers, not the [government of Mexico], would pay the price for the [government of Mexico's] alleged infidelity to the Agreement," the airline added. "This is bad policy on the part of the Department and would lead to pernicious consequences for consumers, communities, and competition."
Under the tentative DOT order, the airlines must dissolve the partnership by Oct. 26. It was not clear what the next steps or options were for the airlines. Spokespeople for Delta and for the DOT did not immediately respond to a request for comment from TPG.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.