Mexico competition watchdog approves Aeromexico-Delta joint venture

Mexico's federal competition commission approved Aeromexico's US$1.5b joint venture with Delta with certain conditions, Aeromexico said in a filing on Monday. Grupo Aeromexico SAB de CV and Delta Airlines Inc are seeking a broad alliance and had asked the commission, known as Cofece, for antitrust immunity in order to coordinate prices, capacity and schedules. The two carriers are still awaiting US government approval. The tie-up ultimately will strengthen the airlines’ position in the world’s second-largest cross-border market, helping them vie for US vacationers, business executives and travelers visiting friends and family in either country. One of Cofece's conditions is that eight pairs of slots in the Mexico City airport must be given up, Aeromexico said in a filing to Mexico's stock exchange. Asked about the slots, a spokesman for Aeromexico said the company did not have more information. Cofece said Delta and Aeromexico would not be able to keep assigned routes where they coincide, and that one of the two would have to give them up.<br/>