Background on Delta and Aeroméxico’s Joint Venture
Delta Air Lines and Aeroméxico have had a joint venture agreement since 2016, allowing them to coordinate scheduling, pricing, and capacity for flights between the United States and Mexico. This partnership has been a subject of scrutiny due to concerns over its anticompetitive effects on the aviation markets between the two countries.
US Department of Transportation’s Decision
On Monday, the US Department of Transportation (DOT) announced that Delta and Aeroméxico must dissolve their joint venture by January 1, 2026. The DOT argues that this action is necessary due to the ongoing anticompetitive effects in the US-Mexico City markets, providing an unfair advantage to Delta and Aeroméxico.
No Requirement for Delta to Sell Aeroméxico Stake
The US government does not mandate Delta to sell its 20% stake in Aeroméxico.
Aeroméxico’s Response
In response to the announcement, Aeroméxico expressed regret over the decision while clarifying that it “does not affect our customers.” The airline emphasized in a statement that their code-sharing agreements with Delta “remain and will continue to ensure passengers can enjoy the connectivity network of both airlines.”
Continuity of Code-Sharing Agreements
Aeroméxico explained that, alongside Delta, they are evaluating the DOT’s order to determine the next steps for their alliance.
Key Questions and Answers
- What is the joint venture between Delta and Aeroméxico? The joint venture, established in 2016, allowed Delta and Aeroméxico to coordinate scheduling, pricing, and capacity for flights between the United States and Mexico.
- Why is the US Department of Transportation ordering the dissolution of the joint venture? The DOT argues that the ongoing anticompetitive effects in US-Mexico City markets provide an unfair advantage to Delta and Aeroméxico.
- Does the DOT require Delta to sell its stake in Aeroméxico? No, the DOT does not mandate Delta to sell its 20% stake in Aeroméxico.
- How is Aeroméxico responding to the DOT’s decision? Aeroméxico expressed regret over the decision but clarified that it does not affect their customers. They emphasized that code-sharing agreements with Delta will continue, ensuring passengers can enjoy the connectivity network of both airlines.
- What are Aeroméxico and Delta doing next? Both airlines are evaluating the DOT’s order to determine the next steps for their alliance.
