New DOT Restrictions Threaten Delta-Aeromexico JV

The U.S. Department of Transportation on Saturday announced restrictive actions on flights from Mexico "to combat Mexico's blatant disregard of the 2015 U.S.-Mexico Air Transport Agreement and its ongoing anti-competitive behavior." The actions could threaten the Aeromexico-Delta Air Lines joint venture, which was approved in 2016.

This not the first threat to the joint venture. DOT under the Biden administration in January 2024 tentatively dismissed the application from Delta and Aeromexico to renew DOT's approval and grant of antitrust immunity. But the current DOT actions now require Mexican airlines to file schedules with the agency for all their U.S. operations for approval prior to operating any large passenger or cargo aircraft charter flights. The agency also proposed the withdrawal of the JV's antitrust immunity.

DOT cited Mexico's decision in 2022 to seize slots from carriers at Benito Juarez International Airport to allow for construction and alleviate congestion, but "that has yet to. materialize three years later," according to the agency. Mexico also required cargo operations move out of that airport to another facility outside of Mexico City.

"Despite repeated outreach from the Department, Mexico has not provided any information regarding when these slots would be returned or if any major construction projects at MEX will ever materialize," DOT said, adding that the agency "reserves the right to disapprove flight requests from Mexico should the country fail to take corrective action."

Should DOT "finalize the ATI determinations," Delta and Aeromexico would be required to discontinue the cooperation, including common pricing, capacity management and revenue sharing, that requires antitrust immunity, according to the agency. However, the carriers would be able to continue partnering on codesharing, marketing and frequent-flyer reciprocity, and Delta would be able to retain its equity stake in Aeromexico and maintain its existing flying between the U.S. and Mexico.

"The U.S. Department of Transportation's tentative proposal to terminate its approval of the strategic and pro-competitive partnership between Delta and Aeromexico would cause significant harm to consumers traveling between the U.S. and Mexico, as well as U.S. jobs, communities, and transborder competition," Delta said in a statement. "We are reviewing the series of DOT orders regarding Mexico's adherence to the U.S.-Mexico Air Transport Agreement and look forward to working with the Trump Administration to resolve the issues raised in the orders."

"We are currently reviewing the order and intend to submit a joint response with Delta in the coming days," Aeromexico said in a statement.