The recent legal ruling by the U.S. Court of Appeals has temporarily paused the Trump administration’s attempt to dissolve the partnership between Delta Air Lines and Aeroméxico. This decision is significant as it postpones the planned separation date, which was set for January 1, 2026. The administration still has the option to appeal this ruling.
Background of the Delta-Aeroméxico Alliance
The Delta and Aeroméxico alliance has been operational for nine years. In September, the airlines challenged measures instituted by the Trump administration’s Department of Transportation (DOT). These measures aimed to increase competition in the airline industry but raised concerns among industry stakeholders.
Arguments from the Trump Administration
- The DOT asserted that the alliance granted excessive control over routes between Mexico and the United States.
- They claimed the partnership controlled 60% of operations to and from Mexico City, a significant transport hub.
- The government believes that ending this cooperation would protect the public interest by preventing coordinated pricing and capacity controls.
Concerns from Delta and Aeroméxico
Both airlines expressed that ending their partnership would not only be operationally complex but could also harm the consumer market. They emphasized that Delta and Aeroméxico operate as a unified entity, beneficial to travelers across borders.
- Delta anticipates a loss of over 140,000 tourists from the U.S.
- Aeroméxico is projected to lose nearly 90,000 travelers from Mexico.
Next Steps in the Legal Process
The ruling by the U.S. Court of Appeals serves as a reprieve for the airlines, allowing them time to contest the DOT’s decision. Should they lose the case, Delta might be forced to divest its 20% stake in Aeroméxico, which could further complicate their operations.
This ongoing legal battle highlights the delicate balance between regulatory practices and international airline partnerships, with significant implications for consumers and the industry at large.
