By Tracy Rucinski and David Shepardson
Might 25 (Reuters) – The anticipated U.S. downgrade of Mexico’s aviation security ranking will not be concerning the security of Delta Air Traces Inc’s DAL.N accomplice Aeromexico AEROMEX.MX and can have little impression on prospects, Delta’s president stated on Tuesday.
The deliberate downgrade by the U.S. Federal Aviation Administration (FAA) may come as early as Tuesday, folks aware of the matter stated, and follows a prolonged overview of Mexico’s aviation oversight by the company.
“This isn’t about Aeromexico. That is concerning the Mexican model of the FAA not having among the proper protocols in place,” Delta President Glen Hauenstein stated at a Wolfe Analysis convention.
Delta has a codeshare association with Aeromexico enabling them to promote seats on one another’s flights. Delta could be compelled to take away its codes on Aeromexico flights following the downgrade, although Aeromexico may proceed to code on Delta flights and members of Delta’s loyalty program may nonetheless obtain SkyMiles on Aeromexico flights that will usually carry the code, Hauenstein added.
“So little or no impression for our prospects reserving via Delta,” Hauenstein stated.
“What’s does do is prohibit Aeromexico’s potential to develop into the USA,” Hauenstein added.
Delta and Aeromexico have been three way partnership companions since 2017. Delta additionally owns 49% of Aeromexico however took a $770 million cost on its funding final 12 months after the service’s Chapter 11 chapter submitting.
Reuters reported the anticipated downgrade on Friday.
This could not be the primary time the FAA downgraded Mexico’s air security ranking. In 2010, the company downgraded Mexico resulting from suspected shortcomings inside its civil aviation authority, then restored its prime ranking about 4 months later.
U.S. prepares to downgrade Mexico air security ranking, sources say
(Reporting by Tracy Rucinski in Chicago and David Shepardson in Washington; Modifying by Will Dunham)
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