Aeromexico Challenges U.S. Directive on Delta Partnership

Aeromexico appealed to halt a U.S. order mandating the dissolution of its joint venture with Delta Air Lines, citing significant financial losses. The partnership, which has been operational for nearly nine years, is under scrutiny due to competition concerns in the U.S.-Mexico aviation sector.

Aeromexico has filed an appeal with the 11th Circuit Court of Appeals, seeking a stay on a U.S. government directive that demands the dissolution of its joint venture with Delta Air Lines by January 1. This partnership allows the airlines to collaborate on scheduling, pricing, and capacity for flights between the U.S. and Mexico.

The airline argues that dissolving the joint venture would incur substantial financial losses that may not be recoverable, even if the court later upholds the legality of the arrangement. This comes after the U.S. Transportation Department called for the termination of the partnership in September, citing fair competition issues.

The nearly nine-year-old collaboration between Aeromexico and Delta is part of broader scrutiny by the Department into Mexican aviation practices, raising concerns about the potential impact on market dynamics and consumer choice.

(With inputs from agencies.)