Delta Air Lines has taken steps to challenge a Department of Transportation (DOT) decision regarding its joint venture with Aeromexico. The airline filed a petition with the US Court of Appeals for the Eleventh Circuit, questioning the DOT’s authority to revoke its antitrust immunity with Aeromexico.
Context of the Challenge
The DOT, led by Secretary Sean Duffy, ordered Delta and Aeromexico to dismantle their joint venture by January 1, 2026. This decision arose from concerns that the Mexican government restricts US airlines’ access to the Mexico City Airport, which is a crucial hub for transborder flights.
Details of the Situation
The Trump administration previously criticized Mexico for limiting airport slots available to foreign airlines at Benito Juárez International Airport, Mexico City’s main airport. Aeromexico currently controls a significant number of slots at this airport, while other airlines are relegated to a lesser-used airfield located on the city’s outskirts.
The Mexican government justifies this arrangement by stating that the overcrowded Benito Juárez Airport requires extensive upgrades. However, White House officials argue that the promised upgrades have been delayed, leaving airlines facing access limitations without corresponding improvements.
Concerns Over Competition
In the DOT’s final order, Secretary Duffy expressed concern that restrictions imposed by the Mexican government disproportionately benefit Aeromexico. This has raised alarms regarding fair competition within the aviation industry.
Mexican Government’s Response
To counteract US criticisms, the Mexican government committed to returning previously “confiscated” landing and takeoff slots to US airlines. They also pledged to create a regulatory body to oversee future slot distributions. Yet, the DOT maintained that these promises did not sufficiently address their concerns about the antitrust situation between Delta and Aeromexico.
Delta’s Position
In response to the situation, a Delta spokesperson stated that the airline’s petition for a court review aims to safeguard its business interests and those of Aeromexico. The spokesperson emphasized that the decision to challenge the DOT’s order was not made lightly and argued that the strategic partnership between Delta and Aeromexico is essential for serving US customers effectively.
Delta holds a 20% stake in Aeromexico, a company that emerged from Chapter 11 bankruptcy in 2022. The Mexican government has not owned shares in Aeromexico since 2007.
Conclusion
The ongoing dispute between Delta Air Lines, Aeromexico, and the US Department of Transportation highlights significant regulatory and competitive challenges in the aviation sector. As the legal processes unfold, the implications for airline operations between the United States and Mexico remain to be seen.
