Delta and Aeromexico Battle USDOT's Joint Venture Termination

Delta Air Lines and Aeromexico are challenging a Trump administration directive to terminate their joint venture, which enables coordinated flight scheduling and pricing for U.S.–Mexico routes. Both carriers approached the 11th Circuit Court of Appeals, emphasizing the irreparable financial damage it would cause if the order isn't blocked.

The U.S. Department of Transportation, citing competition concerns, mandated that the venture dissolve by January 1. The decision is part of a broader effort to address Mexican aviation competition issues. Delta warned of possible operational chaos, branding the USDOT's actions as arbitrary.

The affected airlines claim that they comply with a rigorous standard that rivals like United Airlines do not face. Aeromexico must significantly adjust its U.S. operations, including developing an independent brand presence and IT infrastructure. The USDOT contends that the venture fosters unfair market advantages for the carriers in U.S.–Mexico City flights.