Court Revokes Trump's Order to Split Delta-Aeromexico Joint Venture

A U.S. appeals court overturned the Trump administration's order to dissolve Delta Air Lines and Aeromexico's joint venture, citing insufficient reasoning by USDOT. The ruling allows continued coordination of flights between the U.S. and Mexico, which the airlines argue benefits consumers and supports economic growth.

A U.S. appeals court has overturned a directive from the Trump administration that sought the dissolution of Delta Air Lines and Aeromexico's joint venture. The decision comes after the airlines challenged the U.S. Department of Transportation's order, claiming it was inconsistent with prior analyses of similar ventures.

The 11th U.S. Circuit Court of Appeals ruled that the USDOT failed to provide adequate reasoning for subjecting the joint venture to stricter standards than others, such as a joint venture between United Airlines and Japan's ANA. The department had labeled the cooperation as "legalized collusion" because it controlled a significant portion of U.S.-Mexico air traffic.

Delta and Aeromexico celebrated the court's decision, highlighting the venture's success in enhancing consumer options and driving economic benefits. Meanwhile, USDOT expressed its intent to explore legal recourse while continuing discussions with the Mexican government to ensure fair treatment of U.S. carriers and compliance with international agreements.