Transportation Department orders end to Delta-Aeromexico joint venture
The U.S. Department of Transportation has ordered Delta Air Lines and Aeromexico to end their joint venture by january 1, 2026.The partnership, initially approved in 2016 with antitrust immunity under the Obama governance, allowed the airlines to coordinate pricing, sales, network planning, and frequent flyer programs. However,Transportation Secretary Sean Duffy,under the Trump administration,cited Mexico’s failure to comply with the 2015 U.S.-Mexico Air Transport Agreement, which gave the joint venture an unfair advantage over U.S. carriers. The Department aims to restore fair competition by requiring the dissolution of the joint venture’s cooperation in pricing, capacity management, and revenue sharing. Both Delta and Aeromexico expressed disappointment with the decision but noted that some cooperative aspects, such as frequent flyer programs and Delta’s equity stake in Aeromexico, will remain unaffected.The directive reflects the administration’s broader “America First” agenda to ensure fairness in international airline competition.
Transportation Department orders end to Delta-Aeromexico joint venture
The Transportation Department has ordered Delta Air Lines and Aeromexico to dissolve their joint venture by the end of the year.
The joint venture was originally established in December 2016, when then-President Barack Obama’s Transportation Secretary Anthony Foxx approved antitrust immunity for the two airlines. It allowed the companies to coordinate their pricing and sales, network plans, and frequent flier programs.
Transportation Secretary Sean Duffy said Mexico has refused to follow the 2015 U.S.-Mexico Air Transport Agreement, giving the two joint venture companies an upper hand on U.S. carriers.
“Empty promises mean nothing,” Duffy said in a press release. “After years of taking advantage of the U.S. and our carriers, we need to see definitive action by Mexico that levels the playing field and restores fairness. Under President Trump’s leadership, we will continue to put America First and hold any country who thinks they can distort the rules accountable.”
Duffy foreshadowed this move in July, when he submitted a show-cause order proposing to withdraw the antitrust immunity between the two companies.
Transportation Department officials said the two companies must dissolve their joint venture by Jan. 1, 2026, ending any practices that require antitrust immunity, such as “common pricing, capacity management, and revenue sharing.”
A Delta spokesperson said the order will have no effect on scheduled flights and that company personnel are “considering next steps.”
“We are disappointed that the Department of Transportation has chosen to terminate its approval of the strategic and pro-competitive partnership between Delta and Aeromexico, a decision that will cause significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico,” Delta said in a statement.
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An Aeromexico spokesperson also said in a statement that company personnel were disappointed with the decision, according to a CNBC report.
The decision lets the two companies continue to cooperate with their frequent flier program and marketing strategies, according to the Transportation Department release. The order does not affect Delta’s 20% equity stake in Aeromexico.
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