Gomez says administration will use deals to pressure companies

Gomez says administration will use deals to pressure companies

The Trump administration has ordered Delta Air Lines and Aeromexico to unwind their nearly decade-old joint venture by January 1, 2026. This decision aims to address ongoing anticompetitive effects in U.S.-Mexico City markets .

The joint venture, which began in 2016, allowed Delta and Aeromexico to coordinate schedules, pricing, and capacity for flights between the U.S. and Mexico. Both administrations had considered ending the venture due to disputes about competition between the two countries. However, the order does not change Delta's 20% equity stake in Aeromexico.

The Transportation Department stated that the order is necessary to prevent Delta and Aeromexico from gaining an unfair advantage as predominant competitors. Delta expressed disappointment with the decision, stating that it would cause significant harm to U.S. jobs, communities, and consumers traveling between the U.S. and Mexico. Aeromexico, however, plans to continue offering flights on each other's airlines and maintaining frequent flyer program reciprocity.

The Biden administration had also weighed withdrawing antitrust immunity for the joint venture. Both airlines responded in a filing, saying that the partnership generated $310 million for the U.S. economy and would lead to a loss in economic benefits if unwound. The market would be captured by their competitors if the joint venture is dissolved.

The order comes amidst a series of long-running complaints from the U.S. about competition between the two countries. The dispute with Mexico is part of a broader series of complaints about competition.