United Airlines wants the Mexico City slots JetBlue is giving up
United Airlines sees opportunity in Mexico City, even as smaller carriers like JetBlue Airways pull back from the market.
The Star Alliance carrier wants to launch a third daily flight between its San Francisco (SFO) hub and Mexico City (MEX) with an Airbus A319, it said in an application to the U.S. Department of Transportation on Friday. The flight, United argues, is possible with some of the slots that JetBlue will return in January as that carrier ends flights at the constrained Mexican airport.
United added that it has repeatedly sought the slots necessary for the new flight from Mexican authorities to no avail.
The airline is appealing to U.S. authorities in what would normally be a matter for Mexican regulators under a 2016 decision approving a partnership between Delta Air Lines and Aeromexico. The tie-up, or "joint venture" that allows the two SkyTeam Alliance members to operate as essentially one between Mexico and the U.S., was conditioned on Delta and Aeromexico divesting 48 slots at the Mexico City airport.
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The DOT allocated those slots to Mexican and U.S. carriers that either did not fly between Mexico City and the U.S., or lacked a sizable operation. In other words, the regulator excluded incumbents like American Airlines and United Airlines in the name of creating new competition.
In aviation vernacular, "slots" represent flight rights needed to operate at certain capacity controlled airports. One slot allows a takeoff or landing, meaning two are needed for a round-trip flight.
In 2016, American and United respectively carried 15.4% and 15.2% of the 7.3 million passengers between Mexico City and the U.S., according to DOT data via Cirium. JetBlue and Southwest Airlines served Mexico City but only had a 2.5% and 3% share of passengers, respectively.
Fast forward three years and the DOT's aims have not gone as planned. Alaska Airlines, JetBlue and Southwest, plus a number of Mexican carriers, were awarded the slots with plans for an array of new routes. However, all three U.S. carriers have since exited Mexico City altogether — Alaska in November 2018, Southwest in March, and JetBlue this January.
The moves have come amid weak U.S.-Mexico demand. Aeromexico has ended service between Mexico City and Boston (BOS), Portland (PDX) in Oregon, and Washington Dulles (IAD) since last December, even with the Delta partnership.
Related: United Airlines' 2020 growth includes more domestic 777s
Enter United, which sees an opportunity in the failure of the DOT's push to open Mexico City to new carriers.
"Conditions have changed and the public interest requires a fresh look at, and a reconsideration of, United's eligibility," United said in its application. "Rather than allow the slot pairs to go unused or be returned to Delta/Aeromexico, the [DOT] should award United the divested slot pair… which will enhance competition and provide significant consumer benefits."
United has seen its share of Mexico City-U.S. passengers fall to 13.4% of the 8.3 million in 2018 — a nearly two point decline since 2016 — DOT data shows. American has seen a three-point decline to 12.3%, while Aeromexico and Delta saw their combined share decline by six points to 40%.
Whether the DOT will be swayed by United's argument remains to be seen. The mainline carrier has a point that awarding it slots would create more competition, and likely do more for consumers, than leaving them unused or returning them to Aeromexico and Delta. However, other incumbents like American may argue that if the regulator grants United's request, it needs to consider others as well.
In addition to its San Francisco flights, United serves Chicago O'Hare (ORD), Houston Intercontinental (IAH), Newark (EWR) and Washington Dulles from Mexico City, according to Cirium schedules.
Related: The ultimate guide to United Polaris
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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.