U.S. Calls Time on Delta-Aeromexico Aviation Deal Amid Legal Tug-of-War

The Trump administration urged a U.S. appeals court on Monday to deny Delta Air Lines and Aeromexico's request to pause a directive dismantling their joint venture, which coordinates flights between the U.S. and Mexico. The Department of Transportation aims to end the partnership over antitrust concerns, with a deadline of January 1.

Federal filings describe the venture as 'legalized collusion,' dominating a significant market share of U.S.-Mexico routes, particularly through Mexico City. Both airlines argue that financial losses would be irrecoverable if a court ultimately supports their current arrangement, a sentiment echoed by Delta, a 20% stakeholder in Aeromexico.

Government arguments stress the public's benefit from renewed competition, countering airline claims of severe financial impact. This comes amid a broader clampdown on Mexican aviation routes to the United States, citing improper actions by Mexican authorities against U.S. carriers.