U.S. seeks to terminate Delta-Aeromexico partnership

The U.S. Department of Transportation (DOT) has proposed the termination of antitrust immunity for the joint venture between Delta Air Lines and Aeromexico. This action by the DOT stems from concerns that the Mexican government has violated provisions of the U.S.-Mexico air transportation agreement.

The core issue involves the Mexican government’s decision regarding cargo flights at Mexico City International Airport (MEX). The DOT alleges that by requiring cargo operations to move from MEX to Felipe Ángeles International Airport (NLU), the Mexican government’s actions impair the value of existing operating rights for air carriers.

Both Delta Air Lines and Aeromexico have filed responses with the DOT regarding the proposed termination. Delta’s filing asserts that ending the immunity “comes at the worst possible time,” warning of potential negative impacts on customer choices, jobs, and economic benefits. Delta emphasizes that the joint venture is crucial for their Transborder operations.

Aeromexico’s filing urges the DOT to reconsider its preliminary order. The airline clarified that Mexican air carriers were “obligated by law” to relocate cargo operations from MEX. Aeromexico also highlighted that this government directive applies equally to all-cargo airlines, both Mexican and foreign. Aeromexico confirmed it moved its all-cargo operations from MEX to NLU by July 7.

The DOT is currently accepting public comments on its proposed order before making a final decision.

Key Points

* Aeromexico moved its all-cargo operations from Mexico City International Airport (MEX) to Felipe Ángeles International Airport (NLU) by July 7.

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