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Court overturns DOT termination of Delta
The Points Guy • • business
Key Points:
- A U.S. appeals court ruled in favor of Delta Air Lines and Aeromexico, allowing their immunized joint venture to continue despite the Department of Transportation's attempt to end it starting in 2024.
- The court's decision was based on the DOT's narrow focus on the Mexico City market rather than the broader U.S.-Mexico market analysis used when approving the joint venture in 2016.
- The joint venture enables the airlines to coordinate scheduling, pricing, and sales, providing enhanced connectivity and increased competition in the largest international market by seats from the U.S.
- Since its inception, the partnership has added numerous new routes and now represents the second-largest share of seats between the U.S. and Mexico, just behind American Airlines.
- The DOT's threat to terminate the joint venture followed previous challenges, including a suspension of codeshare and coordination due to Mexico's downgraded FAA safety rating, which was restored in 2023.
