US Department of Transportation orders Delta-Aeroméxico alliance to end Jan. 1

The U.S. authorities has ordered Delta Air Lines and Mexico’s flagship hose Aeroméxico to extremity their astir decade-old associated task by Jan. 1. 

The strategical concern — an antitrust immunity woody — allows the 2 airlines to coordinate schedules and prices for flights betwixt the U.S. and Mexico.

The bid from the DOT, headed by Secretary Sean Duffy, is simply a punishment owed to Mexico’s evident refusal to travel a bilateral aviation agreement. (@SecDuffy/X)

According to the order issued by the U.S. Department of Transportation (DOT), the determination is based connected “ongoing anticompetitive effects successful U.S.-Mexico City markets that supply an unfair vantage to Delta and Aeromexico,” portion besides creating “unacceptable existent and imaginable harm for stakeholders, including consumers.”

The bid requires Delta/Aeroméxico to “discontinue competitively delicate activities specified arsenic communal pricing, capableness absorption and gross sharing.” However, the carriers volition beryllium permitted to proceed their concern done codesharing, selling and predominant flyer practice and Delta volition beryllium capable to clasp its 20% equity involvement successful Aeroméxico. 

A DOT property merchandise declared that Mexico’s “refusal to travel [a] bilateral aviation statement … requires contiguous corrective action.” In July, DOT imposed restrictions connected Mexican airlines successful its archetypal effect to the perceived violations.

The Sept. 15 connection asserts that Mexico has not been successful compliance since 2022 erstwhile it rescinded airdrome slots assigned to U.S. carriers astatine Mexico City’s Benito Juarez International Airport. 

DOT claims that U.S. cargo airlines were forced to relocate operations nether the pretense of a operation task to alleviate congestion that has yet to materialize. The disruption has near U.S. businesses “holding the container for millions successful accrued costs,” it said.

“Empty promises mean nothing,” said U.S. Transportation Secretary Sean P. Duffy. “After years of taking vantage of the U.S. and our carriers, we request to spot definitive enactment by Mexico that levels the playing tract and restores fairness.” 

Aeroméxico said it regretted the decision, insisting that it ignores the benefits the confederation had brought to tourism and connectivity.

The Mexican bearer issued a connection saying that the bid “does not impact our customers,” adding that the 2 airlines volition proceed to connection flights connected each other’s airline. Frequent flyer programme reciprocity, successful which customers tin gain and pain miles, volition besides continue.

Delta lamented the determination successful a connection of its own.

“We are disappointed that [DOT] has chosen to terminate its support of the strategical and pro-competitive concern betwixt Delta and Aeromexico, a determination that volition origin important harm to U.S. jobs, communities and consumers traveling betwixt the U.S. and Mexico.”

With reports from Reuters, La Jornada, CNBC and USA Today