Appeals Court Halts Unwind of Delta-Aeromexico Joint Venture

A U.S. appeals court temporarily stopped the Trump administration's directive for Delta Air Lines and Aeromexico to dissolve their joint venture. The airlines argued that reversing the nine-year partnership, which involved coordinated scheduling and pricing for US-Mexico flights, would incur significant and irrecoverable costs.

A U.S. appeals court took decisive action late Wednesday, pausing a Trump-era mandate targeting Delta Air Lines and Aeromexico. This directive sought to fracture the joint venture they've shared for nearly a decade.

The airlines, in their legal challenge, aimed to block the Transportation Department's order to disassemble their partnership, a collaboration pivotal for coordinating schedules, pricing, and capacity across U.S.–Mexico routes.

Delta and Aeromexico highlighted the substantial unrecoverable costs they would face should a court later uphold their contested arrangement, pressing the need to maintain the joint venture beyond the impending January 1 deadline.

(With inputs from agencies.)