U.S. Court Pauses DOT Order Against Delta-Aeromexico Venture

A U.S. appeals court temporarily halted the Department of Transportation's order for Delta Air Lines and Aeromexico to dissolve their joint venture. The DOT cited competition concerns in Mexico's aviation sector. The airlines argued against the order, deeming it too stringent compared to similar ventures.

The legal saga surrounding the Delta Air Lines and Aeromexico joint venture took a new turn late Wednesday when a U.S. appeals court temporarily paused a directive from the Department of Transportation (DOT). The DOT had ordered the dissolution of the nine-year-old partnership by January 1, citing competition issues.

Delta Air Lines hailed the court's decision as a necessary pause while the validity of the DOT's mandate is scrutinized. Aeromexico confirmed the joint venture remains intact as legal proceedings continue, despite the DOT labeling it as 'legalized collusion' covering 60% of Mexico City to U.S. routes.

The U.S. government anticipates the joint venture could lead to higher fares and reduced competition. Recent actions include revoking Mexican carriers' U.S. routes and suspending flights from Mexico City's Felipe Angeles International Airport. These moves have fueled tension between U.S. and Mexican officials.

(With inputs from agencies.)