Partner airlines Delta and Aeromexico must dissolve their joint venture agreement, the Department of Transportation said Tuesday.
The two carriers formed the agreement in 2016, and it allows them to list flights together and share revenue. Secretary of Transportation Sean Duffy said the partnership must end because Mexico is not being fair to United States airlines.
At the center of the issue is a disagreement about Mexico City’s two airports. Duffy says that the Mexican government rescinded slots for U.S. airlines and all-cargo carriers at the capital’s Benito Juarez International Airport (MEX) in 2022 and 2023 under the guise of upcoming construction projects.
However, that construction was never started, the DOT states. The U.S. cargo airlines were forced to move to the newer but less appealing Felipe Angeles International Airport (NLU) 30 miles from the center of the city.
“By restricting slots and mandating that all-cargo operations move out of MEX, Mexico has broken its promise, disrupted the market, and left American businesses holding the bag for millions in increased costs,” the DOT says.
The change provides an unfair advantage in the market to Delta and Aeromexico, according to Duffy. As a result, he terminated the airlines’ agreement and withdrew its antitrust immunity. The two carriers must wind down the joint venture by January 1, 2026.
The two carriers will need to end common pricing, capacity management, and revenue sharing, but the DOT says they will still be able to continue “arms-length activities,” like codesharing, marketing, and coordinating their frequent flier programs.
“Empty promises mean nothing,” Duffy said. “After years of taking advantage of the U.S. and our carriers, we need to see definitive action by Mexico that levels the playing field and restores fairness. Under President Trump’s leadership, we will continue to put America First and hold any country who thinks they can distort the rules accountable.”
The termination of the partnership follows a warning from Duffy in July that he would end the agreement if Mexico didn’t take any action to restore the U.S. airlines’ slots.
“We are disappointed that the Department of Transportation has chosen to terminate its approval of the strategic and pro-competitive partnership between Delta and Aeromexico, a decision that will cause significant harm to U.S. jobs, communities and consumers traveling between the U.S. and Mexico,” Delta said. “We are reviewing the Department’s order and considering next steps.”
The airline says that all of its flights will continue to operate as normal, unless passengers are contacted by Delta.
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