Delta and Aeromexico appeal against US order that ended joint venture

Delta Air Lines and Aeromexico filed a request with a US appeals court on October 24 to halt an order from the US Department of Transportation (DOT) that requires termination of their joint venture.

The DOT directive, issued in September, instructs the carriers to end their nearly nine-year partnership by January 1, citing concerns about reduced competition in the Mexican aviation sector.

Aeromexico argues it would incur unrecoverable costs even if a court later reinstates the partnership, while Delta warns of severe operational disruptions and describes the DOT’s action as arbitrary.

The joint venture accounts for approximately 60% of passenger flights between Mexico City International Airport and the United States, giving the carriers a combined 20% share of the US–Mexico air travel market.

The DOT is not requiring Delta to divest its 20% equity stake in Aeromexico but has denied the carriers’ request to postpone the order’s enforcement.

Delta estimates that consumers could lose up to $800 million in annual benefits if the joint venture is dissolved, underscoring the partnership’s claimed value.

The court will now consider whether to grant a stay, as both airlines seek to maintain business continuity and regulatory clarity ahead of the January deadline.

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Ricardo Meier

Creator of the website that started in 1996 as a magazine. He also writes on Brazilian websites AUTOO, MOTOO and MetrôCPTM.

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