Delta Says Feds Ordered Its Aeromexico Partnership to End
The joint venture between Delta Air Lines and Aeromexico, generating $310 million annually for the U.S. economy, faces termination due to anticompetitive concerns from the U.S. Transportation Department.
- On Monday, the Trump administration ordered Delta Air Lines and Grupo Aeromexico, S.A.B. de C.V. to unwind their joint venture by January 1, ending coordination of scheduling, pricing and capacity for U.S.-Mexico flights.
- The U.S. Transportation Department argued `This action is necessary because of ongoing anticompetitive effects in U.S.-Mexico City markets that provide an unfair advantage to Delta and Aeromexico` amid prior regulatory scrutiny.
- In regulatory filings, the airlines said the partnership generated $310 million for the U.S. economy, Delta Air Lines holds a 20% equity stake in Aeromexico, and frequent-flyer program reciprocity will continue.
- Both carriers said they were disappointed and are reviewing the order before deciding next steps, while Delta warned the move would cause significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico.
- Major U.S. gateways like Los Angeles may be affected, as the July proposal to unwind targets U.S.-Mexico routes including Aeromexico Boeing 737 MAX 8 operations, potentially reshaping carrier competition.
16 Articles
16 Articles
MEXICO CITY (AP) — The Trump administration on Monday lifted antitrust immunity for Delta Air Lines and Aeromexico, which allowed them to maintain a strategic cooperation agreement to set prices, routes and…
The U.S. Department of Transportation (DOT) decided to conclude the alliance between Delta and Aeromexico, so companies will no longer enjoy the antitrust immunity that allowed them to increase travel on the U.S.-Mexico air market.According to Donald Trump's government's determination, the measure will apply as of January 1, 2026.
UPDATE 1-Trump administration orders Delta, Aeromexico to end joint venture by January 1
UPDATE 1-Trump administration orders Delta, Aeromexico to end joint venture by January 1 The Trump administration said late on Monday it was ordering Delta Air Lines and Aeromexico to unwind a joint venture by January 1 that let the carriers coordinate scheduling, pricing and capacity decisions for U.S.–Mexico flights. The U.S. Transportation Department in July had proposed ending the nearly nine-year-old joint venture as part of a number of act…
Coverage Details
Bias Distribution
- 57% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium