The U.S. reportedly called the JV a “legalized collusion” that controls “almost 60% of operations at the fourth-largest international gateway to and from the United States,” referring to Mexico City flights.
- The two airlines have requested a waiver from the Department of Transportation’s January 1, 2026, deadline to dissolve their joint venture.
- In an earlier filing, Delta, which holds a 20% stake in Aeromexico, had warned that the partnership sustains nearly 4,000 U.S. jobs and adds more than $310 million to the U.S. economy.
- The government said the airlines’ claims “of irreparable injury are overblown.”
The Trump administration reportedly urged an appeals court on Monday to reject the efforts of Delta Air Lines and Aeromexico to halt an order that asked the airlines to end a joint venture that allows them to coordinate flight schedules and prices on U.S.-Mexico routes.
According to a Reuters News report, citing a filing by the Departments of Transportation and Justice, the U.S. reportedly called the JV a “legalized collusion” that controls “almost 60% of operations at the fourth-largest international gateway to and from the United States,” referring to Mexico City flights.
The two airlines have requested a waiver from the Department of Transportation’s January 1, 2026, deadline to dissolve their joint venture. The carriers believe that the extension would allow the court sufficient time to conduct a thorough review and issue an order.
What’s At Stake?
In an earlier filing, Delta, which holds a 20% stake in Aeromexico, had warned that the partnership sustains nearly 4,000 U.S. jobs and adds more than $310 million to the U.S. economy. It had also cautioned that an end to the joint venture could result in the loss of $800 million in annual consumer benefits and the cancellation of two dozen routes. In 2024, the Biden administration also considered scrapping the joint venture, which has been in operation since 2016.
The government said the airlines’ claims “of irreparable injury are overblown and the public interest favors restoring full and fair competition between Delta and Aeromexico themselves and among them and their competitors.”
Retail sentiment on Stocktwits about Delta was in the ‘neutral’ territory at the time of writing.
More Pressure On Mexican Aviation
The U.S. previously accused its southern neighbor of maintaining a slot allocation regime that does not meet international standards. Washington, D.C.’s complaints stem from a move by the Mexican government to reduce slot awards to U.S. carriers and restrict cargo flight access at Mexico City’s Benito Juarez International Airport to reduce congestion and move flights to a newly built airport outside of Mexico City.
According to the Reuters News report, in separate actions last week, the Trump administration revoked approval for 13 routes by Mexican carriers into the U.S. It scrapped all combined passenger and cargo flights by Mexican airlines to the U.S. from the newly built Felipe Angeles International Airport.
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