Delta and Aeroméxico Challenge U.S. Decision to Terminate Their Joint Venture

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Delta Air Lines and Aeroméxico joined forces nearly nine years ago through a joint venture that allows them to coordinate schedules, fares, and capacity on routes between Mexico and the United States. However, this cooperation is now facing its biggest turbulence: the U.S. Department of Transportation (USDOT) has ordered its dissolution, citing concerns about unfair competition in the markets between the United States and Mexico City.

The measure, announced on September 15, is part of a broader set of actions towards Mexican aviation. According to the U.S. regulator, the agreement gave both companies an unfair advantage over other operators.

Legal Challenge

On Thursday, Delta and Aeroméxico filed a challenge with the 11th Circuit Court of Appeals. The petition, made public this Friday, seeks to halt the implementation of the order and buy time. Both companies plan to request a stay of the ruling to prevent it from taking effect on January 1, while the court reviews the case.

In a statement, Delta said the lawsuit “is our only option at this time and the next necessary procedural step to protect the business interests of Delta and Aeroméxico, our global networks, and our customers.”

The Atlanta-based carrier warned that complying with the order by the set deadline would be “operationally and financially onerous.”

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Washington’s Argument

For the Department of Transportation, ending the agreement “is necessary due to the anti-competitive effects in the markets between the United States and Mexico City.” According to its estimates, the collaboration restricts competition on one of the continent’s most active international routes.

The two airlines represent approximately 60% of passenger flights between Mexico City International Airport and the United States, a connection that ranks as the fourth largest international point of entry to and from the North American country.

Despite this, the U.S. government clarified that it will not require Delta to sell its 20% stake in Aeroméxico.

Economic and Labor Risks

Delta argues that the dissolution of the agreement could have significant adverse effects. The company states that the joint venture generates nearly 4,000 jobs in the United States and contributes over $310 million to the national GDP.

Furthermore, it warns that up to $800 million in annual benefits for consumers could be lost, about two dozen routes could be canceled, and smaller aircraft would replace current planes, reducing capacity on various cross-border connections.

What’s at Stake

The case is shaping up to be a key confrontation between two of the continent’s largest airlines and the U.S. aviation regulator. While Delta and Aeroméxico seek to preserve a cooperation they consider essential for their binational network, Washington defends the need to maintain open competition in one of the world’s most important air markets.

The court’s ruling could define not only the future of this alliance but also the course of air connectivity between Mexico and the United States in the coming years.

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