Delta and Aeromexico Fight US DOT Order over Transborder JV
Delta Air Lines and Aeromexico have formally challenged the US Department of Transportation (DOT) decision to dissolve their joint venture by January 1, 2026.
The two airlines filed a legal appeal with the 11th Circuit Court of Appeals to contest the DOT’s final order issued on September 15, 2025, which demands the termination of the nearly 10-year-old partnership.
The joint venture enables Delta and Aeromexico to coordinate scheduling, pricing, capacity decisions, and frequent flyer programs for flights between the US and Mexico.
This cooperation helped integrate their transborder networks and offer consumers more flight options on routes that together account for approximately 60 percent of the passenger traffic between the US and Mexico City Airport (the fourth-largest international gateway to the US).
The DOT justified its decision by pointing to ongoing anticompetitive effects in the US-Mexico City market, arguing the partnership unfairly favored Delta and Aeromexico. The department concluded that ending the joint venture is necessary to restore a more competitive marketplace.
However, the DOT clarified it is not requiring Delta to divest its 20 percent ownership stake in Aeromexico, focusing the dissolution order solely on ending cooperation agreements.
Delta and Aeromexico argue that dissolving the joint venture would create severe operational and financial difficulties. Delta emphasized that the partnership supports nearly 4,000 US jobs and contributes over $310 million annually to the US GDP.
The appeal is currently under review by the court.
Hot News
