Delta and Aeromexico Challenge U.S. Order to Dismantle Joint Venture

Delta Air Lines and Aeromexico have filed a lawsuit against the U.S. government, contesting an order to dissolve their joint venture by January 1. This move follows concerns about anticompetitive practices affecting U.S.–Mexico flights. The airlines argue that ending the venture would be operationally and financially challenging.

Delta Air Lines and Aeromexico have taken legal action against the U.S. government by filing a lawsuit in the 11th Circuit Court of Appeals. The move challenges an order requiring them to dissolve their joint venture, which allows the airlines to coordinate crucial operations such as scheduling and pricing for U.S.–Mexico flights.

The legal petition, made public last Friday, contests the U.S. Transportation Department's decision from September 15 that aims to terminate their nine-year-old collaboration due to competition concerns. Delta expressed that the court petition is their only viable option to protect their business interests and customer network.

The U.S. Transportation Department has yet to comment on the case. They initially argued that the joint venture fosters anticompetitive conditions, impacting U.S.-Mexico City markets and favoring Delta and Aeromexico. Delta warns that dismantling the venture could affect U.S. jobs and the economy, with potential airfare increases and reduced routes.

(With inputs from agencies.)