ATLANTA — The Trump administration has ordered Delta Air Lines and Aeromexico to terminate their joint venture by January 1, citing anticompetitive effects in U.S.-Mexico City markets.
The venture, which began in 2016, allowed Delta and Aeromexico to coordinate schedules and prices for flights between the U.S. and Mexico.
In a 150-page court filing, the Transportation Department stated that the venture provides an unfair advantage to the airlines as predominant competitors, causing harm to stakeholders, including consumers.
Delta expressed disappointment with the decision, stating it will “cause significant harm to U.S. jobs, communities, and consumers traveling between the U.S. and Mexico.”
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Aeromexico also voiced its disappointment and mentioned that the carriers would continue to offer flights on each other’s airlines and maintain frequent flyer program reciprocity.
The Biden administration had considered withdrawing antitrust immunity for the joint venture, reflecting ongoing concerns about competition between the U.S. and Mexico.
The Transportation Department had proposed unwinding the venture in July, leading to objections from the airlines.
Delta and Aeromexico argued in a filing that their partnership generated $310 million for the U.S. economy and warned that ending the venture would result in a loss of economic benefits, with competitors capturing the market.
Despite the order to end the joint venture, Delta’s 20% equity stake in Aeromexico remains unchanged.
The termination of the joint venture marks a significant shift in the aviation market between the U.S. and Mexico, with potential impacts on competition and consumer choice.
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