The U.S. Department of Justice has sided with the U.S. Department of Transportation's July 19 "tentative decision" to withdraw approval of the joint venture and antitrust immunity between Delta Air Lines and Aeromexico, according to an Aug. 8 government filing.
DOT by statute must allow DOJ to weigh in on any change to or cancellation of airline antitrust immunity, though authority to remove immunity remains with DOT. DOJ in the filing said DOT "conducted an analytically rigorous evaluation of the competitive effects of the Joint Venture consistent with its statutory authority and its public interest mandate to consider competitive market forces and the impact of actual and potential competition" in its tentative decision to withdraw immunity.
The carriers had received approval for the JV in 2016.
In response, Delta and Aeromexico on Aug. 12 jointly filed an objection to DOT's decision, outlining benefits of the joint venture to travelers and the economy. In it, the carriers also requested that should the partnership be dissolved, that "in light of the progress the U.S. Government has been making in its recent trade negotiations with the [government of Mexico], … at a minimum, the Department extend the proposed termination date" from Oct. 25, 2025, to March 28, 2026, which is the end of the 2025 International Air Transport Association winter season.
"This additional time would allow the trade negotiations to potentially resolve the Open Skies issues and/or facilitate a more orderly transition for the JCA Partners," according to the filing.
DOT has argued that Mexico has "significantly altered the playing field for airlines in ways that reduce competition and allow predominant competitors to gain an unfair advantage in the U.S.-Mexico market," according to its July 19 filing, citing Mexico's decision in 2022 to seize slots from carriers at Benito Juarez International Airport to allow for construction and alleviate congestion, but that has yet to materialize three years later. Mexico also required cargo operations move out of that airport to another facility outside of Mexico City.
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