The Trump administration has asked a U.S. appeals court to reject an attempt by Delta Air Lines and Aeromexico to block a government order that requires them to dissolve their joint venture. The partnership, which allowed both airlines to coordinate flight schedules, pricing, and capacity between the U.S. and Mexico, has been under scrutiny for limiting competition in key international routes.
According to the U.S. Department of Transportation (DOT), the airlines’ collaboration effectively reduced competition by allowing two major carriers to control nearly 60% of all flights at Mexico City International Airport—one of the largest international gateways to and from the United States. The department stated that it “validly decided to no longer authorize legalized collusion by two formerly competing airlines,” emphasizing that the joint venture restricts fair market access for other airlines and limits consumer choice.
The order to unwind the agreement follows years of regulatory review and changing political stances on antitrust enforcement. Initially approved in 2016 under a previous administration, the joint venture was seen as a way to improve connectivity between the two nations. However, U.S. regulators now argue that market dominance by Delta and Aeromexico has resulted in higher fares and fewer competitive options for travelers.
Delta and Aeromexico have defended their partnership, stating that it benefits consumers through more flight options, better connections, and coordinated services. They argue that the DOT’s decision disregards the broader economic benefits of cross-border cooperation between the U.S. and Mexico.
The case underscores ongoing tensions between airline alliances and antitrust regulators. If the court upholds the DOT’s decision, Delta and Aeromexico may need to restructure their international operations, reshaping competition on one of the busiest air corridors in North America.