The Trump administration has ordered Delta Air Lines and Aeromexico to terminate their nearly decade-old joint venture by January 1, citing anticompetitive concerns in US-Mexico City markets.
In a late Monday filing, the Transportation Department said the partnership unfairly advantaged the two airlines as “predominant competitors,” creating “unacceptable actual and potential harm for stakeholders, including consumers.” The joint venture, launched in 2016, allowed the carriers to coordinate schedules and prices on cross-border flights.
Both airlines expressed disappointment. Delta said the order would “cause significant harm to US jobs, communities and consumers traveling between the US and Mexico.” Aeromexico added that it would continue offering reciprocal frequent flyer benefits and cross-airline bookings despite the ruling.
The Biden administration had previously considered withdrawing antitrust immunity from the partnership as part of a broader series of disputes with Mexico over competition. In July, the Transportation Department proposed dissolving the venture, prompting both airlines to argue that the partnership had generated $310 million for the US economy and its loss would hand market share to competitors.
The order does not affect Delta’s 20% equity stake in Aeromexico.
Erizia Rubyjeana
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