Trump administration forces Delta and Aeromexico to dissolve joint venture

The U.S. Transportation Department has mandated that Delta Air Lines and Aeromexico terminate their joint venture by January 1st due to anticompetitive concerns in U.S.-Mexico City flight markets. This partnership, which began in 2016, allowed both airlines to coordinate flight schedules and pricing strategies between the United States and Mexico. The department argued that this arrangement provided unfair advantages and potentially harmed consumers and competitors.

Both airlines expressed strong disappointment, with Delta claiming the decision would significantly impact U.S. jobs, communities, and travelers. The airlines had previously defended their partnership, stating it generated $310 million for the U.S. economy. Despite the termination, the airlines will maintain codeshare agreements and frequent flyer program reciprocity.

This decision reflects broader competition disputes between the U.S. and Mexico and demonstrates the government's commitment to maintaining competitive aviation markets.