Delta and Aeromexico Strike Back: Call DOT's Order to Terminate Alliance "Fatally Flawed"
Delta and Aeromexico file a strong objection with the DOT, warning of 21 route cancellations and an $800 million consumer harm if their alliance is dissolved.
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Delta Air Lines and Aeroméxico have filed a formal and forceful objection with the U.S. Department of Transportation (DOT), opposing the agency's tentative decision to withdraw the approval and antitrust immunity (ATI) for their Joint Cooperation Agreement (JCA).
In a 78-page document, the airlines label the DOT's proposal as "fatally flawed," "discriminatory," and "arbitrary," warning of a severe impact on consumers, competition, and the economies of both countries.
The DOT's measure, outlined in its Supplemental Show Cause Order (SCO 2025-7-12), proposes the termination of the JCA by October 25, 2025. The agency justifies its stance based on actions by the Government of Mexico (GOM) at Mexico City International Airport (MEX), which it considers violations of the bilateral aviation agreement and detrimental to free competition.
However, Delta and Aeroméxico argue that dissolving their alliance "would punish a U.S. company and U.S. consumers, not the GOM." They assert that direct regulatory tools against the Mexican government, such as those under Part 213, which the DOT has already activated, are the appropriate measures to resolve the dispute.
A Blow to Consumers and Connectivity
The JCA partners maintain that the alliance is "unquestionably pro-consumer, pro-competitive, and pro-American" and has generated substantial benefits since its implementation in 2017. Among these, they highlight the creation of 37 new transborder routes and a 22% increase in capacity.
The termination of the agreement, according to an economic assessment submitted by the carriers, would have devastating consequences. They warn that 21 nonstop routes connecting the United States and Mexico would be at risk of cancellation. This would affect approximately 1.8 million round-trip seats annually. The direct economic harm to passengers is estimated at over $800 million per year due to higher fares and fewer flight options.
Why does the DOT want to end the alliance? The DOT alleges that actions by the Mexican government at the Mexico City airport (MEX), such as slot reductions, have created an "uneven playing field" that violates the open skies agreement and unfairly benefits the immunized alliance.
Which routes could be canceled? The airlines did not specify the 21 routes but indicated they include important business connections, such as those linking automotive hubs in both countries, and are not limited to flights to or from Mexico City.
How does this affect competition? Delta and Aeroméxico argue that their JCA created a strong third network competitor against American Airlines and United Airlines. Its dissolution, they claim, would weaken competition and consolidate the market in favor of their rivals.
In addition to the impact on passengers, the dissolution of the JCA would endanger nearly 4,000 direct and indirect jobs in the United States and reduce tourism revenue by over $200 million annually.
Legal Arguments and Discriminatory Treatment
From a legal standpoint, the airlines accuse the DOT of violating the Administrative Procedure Act (APA) on multiple fronts. They contend that the agency misapplies legal standards and is internally inconsistent by claiming the JCA is anti-competitive while also stating its growth is "substandard" compared to its rivals.
A central point of the objection is the allegation of discriminatory treatment. Delta and Aeroméxico point out that the DOT allows other ATI-immunized alliances to operate in airports with far more severe access restrictions, such as
London-Heathrow (LHR), Tokyo-Haneda (HND), and Lisbon (LIS). They argue it is irrational and arbitrary to threaten their JCA over the situation at MEX—an airport representing only 22% of U.S.-Mexico air traffic—while LHR handles 85% of U.S.-U.K. traffic.
The airlines also refute the notion that they benefited from the Mexican government's actions. On the contrary, they detail that they were forced to return 72 pairs of slots at MEX, accounting for more than 50% of the total reductions and more than triple that of any other carrier.
Given the complexity of unwinding an eight-year-old operation, Delta and Aeroméxico have requested that the DOT, at a minimum, extend the proposed termination date to March 28, 2026, the end of the IATA 2025 winter season, to allow for a diplomatic resolution or an orderly transition.
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