US tells Delta, Aeromexico to end joint venture

STORY: The Trump administration has told Delta Air Lines and Aeromexico to unwind their alliance by January 1.

That joint venture has allowed the pair to coordinate scheduling, pricing and decisions on capacity for U.S.-Mexico flights.

But Washington said Monday (September 15) that the tie-up had anticompetitive effects and gave an unfair advantage to the two carriers.

Delta and Aeromexico account for about 60% of passenger flights from Mexico City Airport to the U.S.

That hub is the fourth-largest international gateway to the United States.

Delta said it was disappointed by the decision, which it said would hurt U.S. jobs and communities.

The airline said it was considering its next steps.

It has previously said the joint venture generates nearly 4,000 U.S. jobs, and contributes over $300 million to the country’s economy.

Aeromexico also said it regretted the move, and that it overlooked the benefits the alliance had brought tourism and connectivity.

The Mexican government did not immediately respond to a request for comment. Related Videos

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Washington said it was not ordering Delta to sell its 20% in its Mexican partner, and the pair could reapply for approval of the joint venture if circumstances changed.

The alliance has been in place for nearly nine years, but had also faced scrutiny by the previous U.S. administration under Joe Biden.

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