An Aeromexico Boeing 737 MAX 8 taxis at Los Angeles International Airport on September 19, 2024 in Los Angeles, California.
Kevin Carter | Getty Images
The Trump administration ordered Delta Air Lines and Aeromexico to finish by Jan. 1 their nearly decade-old three way partnership that enables them to coordinate schedules and costs for flights between the U.S. and Mexico.
“This motion is crucial due to ongoing anticompetitive effects in U.S.-Mexico City markets that provide an unfair advantage to Delta and Aeromexico as two predominant competitors and create unacceptable actual and potential harm for stakeholders, including consumers,” the Transportation Department said in a filing late Monday.
Each Delta and Aeromexico said in separate statements that the carriers were dissatisfied by the department’s decision and were reviewing the order before considering next steps. Delta said it’s going to “cause significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico.”
Aeromexico said that the carriers will proceed to supply flights on one another’s airline in addition to frequent flyer program reciprocity, by which customers can earn and burn miles.
The Biden administration had weighed withdrawing antitrust immunity for the three way partnership, which began in 2016. The dispute with Mexico is a component of a series of long-running complaints from the U.S. about competition between the 2 countries.
The Transportation Department proposed to unwind the enterprise in July, leading the airlines to object. Each airlines responded in a filing, saying that the partnership generated $310 million for the U.S. economy and, if unwound, would result in a loss in economic advantages for the U.S., while the market can be captured by their competitors.
Monday’s order doesn’t change Delta’s 20% equity stake in Aeromexico.
