Delta Aeromexico Seek Court Block US Order Ending US Mexico Joint Venture

Delta Air Lines and Aeromexico are challenging a Trump administration order from the U.S. Department of Transportation (USDOT) that requires them to end their nearly nine-year-old joint venture coordinating scheduling, pricing, and capacity for U.S.–Mexico flights by January 1. The USDOT cited anticompetitive concerns, claiming the partnership unfairly advantages the carriers, potentially leading to higher fares and reduced capacity, particularly in the U.S.–Mexico City market, where they control about 60% of passenger flights. Both airlines argue that the market remains competitive and warn that dissolving the venture would cause severe operational disruptions, substantial financial losses, and eliminate consumer benefits estimated at up to $800 million annually. Aeromexico highlighted the significant costs it would face, including rebranding and IT separation, while Delta criticized the USDOT's decision as arbitrary and applied under a stricter standard than for other joint ventures. The airlines have appealed to the 11th Circuit Court of Appeals to block the order, but the USDOT has rejected requests to delay enforcement. The dispute underscores tensions over regulatory efforts to address competition in the U.S.–Mexico aviation market, with the airlines emphasizing the partnership's role in enhancing connectivity and benefits for travelers.