Delta, Aeroméxico challenge US order to end joint venture 

Delta Air Lines and Aeroméxico have asked a US federal court to block a government order requiring them to dismantle their long-standing joint venture, saying the directive would disrupt cross-border travel and cause heavy financial losses. 

In a petition filed with the 11th Circuit Court of Appeals in Washingrton D.C, the two carriers asked judges to halt enforcement of a September 2025 order from the US Department of Transportation (DOT) that ends their nearly nine-year partnership. The Trump administration directed the airlines to unwind the arrangement by January 1, 2026, citing competition concerns in the US-Mexico market. 

The airlines said the DOT decision is arbitrary and will hurt passengers, employees, and communities that rely on the partnership. Delta told the court that its operations “will face severe disruptions,” noting it has already canceled two US-Mexico flights and may be forced to cut more services in the summer of 2026 if the order stands. Aeroméxico said it would have to divert staff, hire new personnel, and rebuild separate information-technology systems to operate independently, creating what it called “substantial, unrecoverable costs.” 

The DOT ruling followed months of rising tension between Washington and Mexico City over aviation policy. US officials have criticized Mexico’s slot allocation system at Benito Juárez International Airport (MEX), calling it opaque and restrictive. They argue the Mexican government’s intervention has limited competition and unfairly advantaged Aeroméxico and its US partner. 

The department’s order withdrew the carriers’ antitrust immunity, which had allowed them to coordinate schedules, pricing, and capacity as if they were a single airline for transborder flights. Regulators said the partnership’s dominance at Mexico City — where the two account for roughly 60% of US-bound flights — creates “unacceptable actual and potential harm” to consumers. 

The order came after the Department of Justice backed the DOT’s position, urging the termination of the joint venture. US officials cited a lack of transparency in Mexico’s airport management, slot restrictions that limit rival carriers, and government decisions such as closing Mexico City’s main airport to cargo flights. 

Delta and Aeroméxico, both members of the SkyTeam alliance, formed their joint cooperation agreement in 2016 after receiving antitrust clearance from US and Mexican authorities. The deal allowed them to share revenues and align routes between the two countries. Delta also owns a 20% equity stake in Aeroméxico, valued at about $376 million. 

The carriers argue the market remains highly competitive, pointing out that together they control about 20 percent of total seats on US-Mexico routes — roughly the same as American Airlines, which holds a 21% share. Delta estimates that consumers have benefited by as much as $800 million per year from lower fares, new routes, and improved connections created through the venture. 

The case could test the limits of how far the US government can go in policing international airline alliances. If the DOT order takes effect, the airlines will have to separate ticketing, marketing, and scheduling systems by early 2026, ending a partnership that has been a central part of US-Mexico air travel for nearly a decade. 

The court filing came after the DOT rejected the airlines’ request to delay enforcement of the order. The department declined to comment on the appeal. A decision from the 11th Circuit on whether to grant a stay is expected in the coming weeks. The post Delta, Aeroméxico challenge US order to end joint venture  appeared first on AeroTime.

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