ARC NEWS
Delta and Aeromexico ordered to unwind joint venture by 1 January
September 16, 2025
The US Department of Transportation (DOT) has directed Delta Air Lines and Aeromexico to end their joint venture by January 1, 2026, due to actions taken by the Mexican government that affect competition on routes between the United States and Mexico. The department issued a final order on September 15 requiring the two airlines to discontinue their price and capacity setting collaboration by withdrawing antitrust immunity as of 1 January. According to the DOT: "This action is necessary because of ongoing anticompetitive effects in US-Mexico City markets that provide an advantage to Delta and Aeromexico as major competitors and create actual and potential impacts for stakeholders, including consumers." The agency further states that these effects influence competition beyond Mexico City, affecting passenger and cargo operations in additional markets between both countries. The DOT says that the Mexican government "continues along a path of market intervention and distortion that affects competition" in the market, citing measures such as prohibiting all cargo operations at Mexico City’s Benito Juarez International airport, slot confiscation, and persisting with a "slot allocation regime that does not align with international standards and benefits Aeromexico," which it asserts violates the bilateral open skies agreement. Although the order requires the airlines to cease joint price and capacity setting, Delta will retain its 20% stake in Aeromexico. The DOT also mentioned that both carriers have "considerable flexibility to compete in the market and work together to maintain and enhance their joint offerings" without antitrust immunity. Cirium schedules data for September indicates that Delta and Aeromexico account for 8% and 12% of seats, respectively, across all services between the USA and Mexico, while jointly holding 46.5% of seat capacity on Mexico City routes. The DOT indicated that the decision may be revisited "if conditions improve," acknowledging ongoing discussions between the two governments but noting that time is needed to evaluate the Mexican government’s compliance with the US-Mexico Air Transport Agreement and for competitive conditions to improve. Following the order, Delta Air Lines stated that it is reviewing the order and considering its next steps. It confirmed that flights will continue to operate as usual.


​Icelandair chief to take on operations role
September 15, 2025
Icelandair chief executive Bogi Nils Bogason will temporarily assume the role of chief operating officer, following the formal departure of Sylvia Kristin Olafsdottir from the position. Olafsdottir’s retirement, which was first announced in July, takes effect on 12 September. Recruitment for her replacement remains ongoing, and Bogason will hold both the chief executive and interim operations chief roles until a permanent appointment is made. In recent months, Olafsdottir has been actively involved in transitioning her responsibilities to ensure continuity, Icelandair states. "I would like to thank Sylvia for her important contribution to Icelandair and great cooperation over the past years, and I wish her all the best in her new ventures," says Bogason.


Boeing faces $3.14m fine for door-plug blowout, interference
September 15, 2025
The US Federal Aviation Administration (FAA) has proposed fines totalling $3.14 million against Boeing for safety violations between September 2023 and February 2024, including those related to the 5 January 2024 door-plug blowout. The regulator said on 12 September that these include "interference with safety officials' independence". "The FAA utilised its maximum statutory civil penalty authority consistent with law," it says. The agency explains that it identified hundreds of quality-system violations at Boeing's 737 factory in Renton, Washington, and Boeing subcontractor Spirit AeroSystems' 737 factory in Wichita, Kansas. It also says Boeing presented two unairworthy aircraft to the FAA for airworthiness certificates and failed to follow its quality system. Furthermore, the FAA found that "a non-ODA Boeing employee pressured a Boeing ODA unit member to sign off on a Boeing 737 Max airplane so Boeing could meet its delivery schedule, even though the ODA member determined the aircraft did not comply with applicable standards". The FAA's Organization Designation Authorization (ODA) office, established in 2019, oversees and ensures consistency of the regulator's oversight program for companies that issue certificates and conduct certain inspections on its behalf. Boeing has 30 days after receiving the FAA's penalty letters to respond. "We regret the January 2024 door-plug accident and continue to work on strengthening our safety culture and improving first-time quality and accountability across our operations," Boeing says. "Last year, under the oversight of the FAA, we instituted a safety and quality plan with key performance indicators to enhance safety management and quality assurance in airplane production. Our team continues to implement these improvements, such as investing in workforce training, strengthening production system compliance and encouraging employees to speak up."


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