Trump Orders Delta, Aeromexico to End Joint Venture by January 1

The Trump administration said earlier this week it was ordering Delta Air Lines and Aeromexico to unwind a joint venture by January 1 that allowed the carriers to coordinate scheduling, pricing, and capacity decisions for US–Mexico flights, David Shepardson and Kylie Madry reported for Reuters.

The US government said it was not requiring Delta to sell its 20% equity stake in Aeromexico. (Photo: Delta Air Lines Facebook) 

The US Transportation Department in July had proposed ending the nearly nine-year-old joint venture as part of a series of actions aimed at Mexican aviation.

The department under President Joe Biden had already said in January 2024 it was considering the move. Washington has also warned it could take action against European countries over airport restrictions.

The department said that the termination “is necessary because of ongoing anticompetitive effects in US–Mexico City markets that provide an unfair advantage to Delta and Aeromexico.”

The carriers account for about 60% of passenger flights from Mexico City Airport to the US, the fourth-largest international gateway to and from the country.

The US government said it was not requiring Delta to sell its 20% equity stake in Aeromexico. It added that the carriers have considerable flexibility to compete in the market, may still cooperate commercially, and could reapply for approval if conditions change.