U.S. Court Stops Government Order to End Delta and Aeromexico Partnership

Post by : Sameer Saifi

A U.S. appeals court has temporarily stopped the government from forcing Delta Air Lines and Aeromexico to end their joint business deal. The ruling, made late Wednesday, means that the two airlines can continue working together while the court reviews the case.

The U.S. Department of Transportation (USDOT) had earlier ordered the airlines to unwind their joint venture by January 1, saying it was bad for competition. The partnership, which began almost nine years ago, allows the two airlines to coordinate flight schedules, ticket prices, and capacity on routes between the United States and Mexico.

Delta and Aeromexico filed a lawsuit against the USDOT order, arguing that ending the partnership would cause major financial losses that could not be recovered later. The court agreed to temporarily block the order while it studies the legal arguments from both sides.

Delta Air Lines welcomed the decision, saying it appreciated the court’s action to pause the government’s order. The airline said it looks forward to a fair review of the case. Aeromexico also confirmed that the joint venture will remain in place during the court process.

The U.S. Department of Transportation declined to comment on the ruling.

The legal battle follows months of tension between U.S. regulators and Mexico’s aviation authorities. Last week, the U.S. Justice Department and USDOT described the Delta–Aeromexico partnership as “legalized collusion,” claiming it gave the two airlines control of nearly 60% of flights between the U.S. and Mexico City. The government argued that this level of control limited competition and could lead to higher ticket prices for passengers.

Delta, which owns a 20% stake in Aeromexico, said the government was treating its partnership more harshly than similar ones, such as United Airlines’ alliance with Japan’s ANA. The airline argued that the Delta–Aeromexico partnership benefits travelers by offering better flight connections, lower prices, and smoother travel between the two countries.

The Trump administration, however, has taken a strict approach toward Mexico’s aviation industry. In October, the administration canceled approvals for 13 routes operated by Mexican airlines and stopped all flights from Mexico City’s Felipe Angeles International Airport to the U.S. The move came after U.S. officials accused Mexico of unfairly restricting American airlines’ access to its airspace for three years.

Transportation Secretary Sean Duffy said that Mexico “illegally canceled and froze U.S. carrier flights” during that time and that such actions had to face consequences.

The outcome of the Delta–Aeromexico case could have major effects on international air travel between the U.S. and Mexico. If the court ultimately allows the USDOT order to stand, both airlines may have to change flight schedules, reduce routes, or even cancel joint services that millions of passengers use each year.

For now, the temporary court decision means that travelers will not see immediate changes in flight options or ticket prices. But the final verdict will decide whether Delta and Aeromexico can continue working together in the long term or must operate separately once again.

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