Delta-Aeromexico Joint Venture Terminated by US Department of Transportation

Why this matters: This decision could lead to changes in flight availability and pricing between the U.S. and Mexico, potentially affecting travelers and the competitive landscape of the airline industry.

The Department of Transportation’s decision to terminate the joint venture comes after long-standing complaints about competition between the U.S. and Mexico. The DOT proposed unwinding the venture in July, leading to objections from the airlines. Delta and Aeromexico argued that the partnership generated $310 million for the U.S. economy and its termination would result in economic losses. The airlines will need to adjust their strategies and operations to comply with the order, potentially leading to new competitive dynamics in the U.S.-Mexico flight market.

*How to Prepare: Travelers should monitor flight schedules and pricing for potential changes. Airlines may introduce new routes or adjust existing ones to adapt to the altered competitive landscape.*

The DOT cited anticompetitive effects that provide an unfair advantage to Delta and Aeromexico.

All flights will continue to operate as normal, unless otherwise contacted by Delta or Aeromexico.

No, Delta’s 20% equity stake in Aeromexico remains unchanged.

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