Delta must end its Aeromexico joint venture by Jan. 1 after US regulators cite anticompetitive concerns. [Photo Source: Reuters]
Delta Air Lines must end its joint venture partnership with Aeromexico by January 1. The US Department of Transportation (DOT) announced the decision in an order on September 15.
The joint venture gave the airlines antitrust immunity. It allowed Delta and Aeromexico to coordinate flight schedules, pricing, and seat capacity between the US and Mexico. The partnership has been active for almost nine years.
According to the DOT, the decision comes from “ongoing anticompetitive effects in US-Mexico City markets that provide an unfair advantage to Delta and Aeromexico.”
Transportation Secretary Sean Duffy linked the move to Mexico’s 2022 decision that forced all-cargo airlines out of Mexico City’s main airport. The DOT argued that this shift created an uneven playing field, giving Delta and Aeromexico a bigger advantage over other carriers.
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Delta expressed frustration with the ruling. In a statement, the airline said it is “disappointed” by the DOT’s decision, which it said will “cause significant harm to US jobs, communities and consumers travelling between the US and Mexico.”
The airline said it is reviewing the order and evaluating its options. Delta did not share specific details on how the wind-down will happen.
For now, Delta stressed that travellers will not see immediate changes. “All flights will continue to operate as normal, unless otherwise contacted by Delta,” the airline said.
Passengers should continue booking and flying as usual. Both airlines will keep serving US-Mexico routes. The DOT confirmed that Delta and Aeromexico can still cooperate through arm's-length agreements.
This means they can codeshare flights, share frequent flyer programs, and market together. Delta will also keep its equity stake in Aeromexico.
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The breakup raises questions for frequent flyers who rely on seamless Delta-Aeromexico connections. Travellers could see reduced convenience in booking cross-border trips. Loyalty program members may also face fewer perks in the long run.
However, Analysts think that other airlines might profit from this. On US-Mexico routes, other airlines like American Airlines, United, and low-cost carriers might increase their footprint. More competition could bring lower fares for some passengers.
Industry experts say the ruling highlights how US regulators are tightening control over airline alliances. The decision shows the Biden administration’s focus on competition and consumer protection in air travel.
Delta and Aeromexico’s joint venture will end by January 1. Travellers will not see sudden changes, but future booking and loyalty benefits may look different. The move may also open doors for more competition in US-Mexico skies.
