DOT presses forward with banning Delta-Aeromexico JV despite recent US-Mexico agreement

A recent US-Mexico agreement could address concerns that influenced the DOT’s decision to rescind the airlines’ immunity from antitrust laws.

The US Department of Transportation (DOT) is not backing down from its move to scuttle the Delta-Aeromexico joint venture despite US and Mexican officials recently reaching a deal that could address broader US concerns about competition at Mexico City International Airport.

The DOT in 2025 ordered the JV dissolved by rescinding its antitrust immunity, saying Mexico’s decision to limit flights at Mexico City International unfairly advantages Delta and Aeromexico. The US has also alleged the actions violate the US-Mexico Air Transport Agreement.

Delta last October appealed in US federal court, arguing the JV actually benefits consumers and asking the court to reverse the DOT’s decision. The court allowed the airlines to maintain their partnership amid the appeal, which is pending.

The battle took a turn on 5 May when the DOT revealed a memorandum of understanding with Mexico outlining “a path forward” for that country to reach compliance with the countries’ transport agreement. The DOT said Mexico had agreed to “stop their anticompetitive behaviour”.

In a 4 June filing with the appeals court, Delta calls the US-Mexico agreement “relevant” to its argument that the DOT can address competitive concerns by means other than prohibiting its business with Aeromexico.

But the DOT disagrees.

The US-Mexico deal “does not resolve any competition issue” and includes “only a non-binding acknowledgement of specific actions needed” by Mexico, the DOT said in a 15 June response to the court.

“The department must see evidence of actual regulatory and policy reform in Mexico and resulting changes to competitive dynamics in the market,” it adds. “If actual conditions change in the future, Delta and Aeromexico can raise them when the department considers a renewal or new application for approval and antitrust immunity.”

Delta does not immediately respond to a request for comment.

Attorneys for the DOT and airlines are scheduled to make oral arguments before the court on 22 June.

The geopolitical tiff is several years in the making, stemming from the Mexican government’s 2022 decision to restrict flights at Mexico City International in a bid to shift air traffic to the new Felipe Angeles International, which is farther from the city. Mexico reduced flight caps and rescinded US airlines’ operating slots at Mexico City International and forced US cargo airlines to relocate to Felipe Angeles.

The DOT viewed those actions as “nontransparent” and said they “severely” restrict US airlines’ access to Mexico City International, violating provisions in the US-Mexico treaty – while advantaging Delta and Aeromexico. That opinion contributed to the DOT’s decision to rescind antitrust immunity for the Delta-Aeromexico JV.

The May US-Mexico memorandum of understanding includes commitments by Mexico to adopt slot policies aligned with “international best practice” and to “guarantee that US carriers will have fair and transparent access to request and operate slots at” Mexico City International, the DOT said.