Airlines Fight Trump-Era Ruling on Joint Ventures

Delta Air Lines and Aeromexico are contesting a decision by the U.S. Transportation Department to dissolve their joint venture. The order, citing competition issues, mandates the end of their collaboration by January 1. Legal action has been taken to challenge the ruling.

Delta Air Lines and Aeromexico have mounted a legal challenge against a Trump administration decision to undo their joint venture by the start of next year. The venture allowed the airlines to collaborate on scheduling, pricing, and capacity for U.S.–Mexico routes.

The airlines brought their case to the 11th Circuit Court of Appeals following the U.S. Transportation Department's directive to dissolve the partnership, which has been in place for nearly nine years. The department's decision is part of a broader strategy focused on addressing competition issues within Mexican aviation.

The joint venture's termination could significantly impact both airlines' operations and offerings on U.S.–Mexico flights, prompting the companies to seek judicial intervention to maintain their collaboration.

(With inputs from agencies.)