more flights to mexico are coming, but they won't be cheap

words mary von aue  |  images aero icarus

Delta Airlines and Grupo Aeromexico are seeking a $1.5 billion venture to boost flight options for travelers between Mexico and the US, Bloomberg reports.

If the agreement passes US and Mexican regulations, the outcomes would not only mean an increase in flights offered, but also greater shared investments such as lounges, flight perks, and other airport installations.

This isn’t Delta’s first rodeo. They have sought out partnerships like this with Air France, Alitalia, and Virgin Atlantic Airways, but the new air treaty between US and Mexico has catalyzed the latest arrangement. While it will not go into effect until January 2016, the Modernized Aviation Agreement includes unlimited market access for US and Mexican air carriers, improved intermodal rights, and pricing flexibility. Corporations on both sides of the border are already hoping to capitalize on the upcoming perks and commercial rights.

The laws of supply and demand might make you think that more flights to Mexico would mean cheaper flights to Mexico, but don’t break out the tequila just yet. According to Bloomberg, agreements like these give airlines freedom to set schedules and fares without triggering regulators’ concerns of uncompetitive practices. The original intent of the air treaty was to further pique interest in cultural exchanges between the two nations, but if joint ventures continue to drive airfare, the traveler may need more incentive than a renovated lounge. 

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