US Halts Delta-Aeromexico Joint Venture Over Mexico Airport Changes

The U.S. Department of Transportation on Friday said it would tentatively decline to renew the antitrust immunity that allows Delta Air Lines and Aeromexico to coordinate schedules and fares on transborder flights.

The immunity — which the airlines have had since 2016 — allowed them to act as a single entity in terms of pricing and scheduling and sell seats on each other’s flights under a codeshare arrangement. The airlines were set to offer more than 90 daily flights between the U.S. and Mexico in 2024, Delta said in October.

Delta and Aeromexico now have until the end of October to unwind their joint venture, according to the Transportation Department. However, the decision is pending a final ruling, so details may change.

The tentative decision comes after Mexico government officials moved cargo flights from the country’s busiest airport, Mexico City Benito Juárez International, to another airport last year. The Mexican government also reduced the capacity of Benito Juárez International last year, which helped push traffic to the newer Mexico City Felipe Angeles International Airport.

Felipe Angeles International was opened in April 2022 as part of President Andres Manuel Lopez Obrador’s flagship public works project. However, the airport failed to meet the Mexican government’s expectations, carrying nearly 1 million fewer passengers projected expected in its first year of operations, according to Mexico Business News.

The Transportation Department argues that the Mexican government’s actions hurt existing carriers and potential new entries to the market. The federal agency added that the “slot allocation regime at MEX was opaque and anti-competitive,” noting that Aeromexico was the largest slot holder and primary beneficiary.

Representatives for Delta and Aeromexico did not immediately return The Messenger’s request for comment.