Grupo Aeromexico filed an application to the Department of Transportation, asking for permission to commence codeshare services with LATAM Airlines in flights to the US. The Mexican carrier expects to operate this codeshare on routes between Mexico City and 11 US cities. Let’s investigate further.
What is Aeromexico looking for?
Aeromexico is looking for authorization to display the LA* designator code of LATAM Airlines Group on flights operated by Aeromexico “from points behind Mexico to any points in the United States and beyond.”
Moreover, the airline is looking that this authorization is effective for an indefinite period. In a filing seen by Simple Flying, Aeromexico stated,
“A code-sharing agreement between Aeromexico and LATAM contemplates their connection, via Mexico City, of LATAM traffic traveling between Chile and the United States.”
The initial codesharing routes contemplated by the parties are between Mexico City and 11 US destinations. These cities are:
- Chicago, Illinois
- Denver, Colorado
- Houston, Texas
- Las Vegas, Nevada
- Los Angeles, California
- Miami, Florida
- New York, New York
- Orlando, Florida
- San Antonio, Texas
- San Francisco, California
- Seattle, Washington
Aeromexico-LATAM’s codeshare agreement history
Both companies announced last year that they would start a codeshare agreement on November 3.
Initially, the agreement was between Aeromexico and LATAM’s affiliates in Colombia and Brazil. The Mexican airline gave access to 42 domestic destinations in Mexico, including Cancun, Monterrey, Guadalajara, and others. Meanwhile, LATAM gave Aeromexico’s passengers access to 14 destinations in Colombia and 40 in Brazil.
The Latin American airlines also added benefits for their frequent fliers. For instance, LATAM Pass members earn and burn miles on all Aeromexico flights. Aeromexico Club Premier members can redeem their points across the LATAM network.
Due to this new agreement, LATAM also relocated its operations inside Mexico City International Airport. It moved from Terminal 1 to Terminal 2, where Aeromexico and Delta operate.
However, now they’re looking to increase their codeshare and include the LATAM’s Chilean branch. Aeromexico added,
“(The codeshare) will enable them to develop the full range of services permitted under applicable air service agreements.” Likewise, the agreement would help “provide passengers with additional service options.”
Simple Flying reached LATAM Airlines Group to comment on the current filing. The airline declined to comment.
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An American powerhouse?
Even though LATAM and Grupo Aeromexico are under Chapter 11 bankruptcies, both companies still have sizeable market shares in the region. Additionally, both airlines are backed up by Delta, so their futures show more promise. Delta holds a 49% and a 20% stake in Aeromexico and LATAM, respectively.
Delta invested in LATAM last year. Subsequently, Grupo Aeroméxico and LATAM have strengthened their relationship. Now the three airlines are aiming at creating a massive powerhouse in the Americas and beyond.
Moreover, there’s still the possibility that Air France-KLM and Aeromexico look for a codeshare agreement in the future. In a Chapter 11 presentation, Aeromexico hinted at that scenario last year.
Imagine this: a powerhouse group of Delta, LATAM, Air France-KLM, and Grupo Aeromexico joining forces in the connectivity between South America, North America, and Europe. They would hit directly at other major players like American Airlines and the International Airlines Group.
In a post-COVID world, that would be a force to reckon with.
What do you think could happen with Aeromexico and LATAM’s codeshare agreement? Let us know in the comments.