DOT Terminates Delta-Aeromexico Alliance by Revoking Antitrust Immunity
The U.S. Department of Transportation (DOT) has finalized its decision to terminate the Joint Cooperation Agreement (JCA) between Delta Air Lines and Aeromexico, revoking the antitrust immunity (ATI) that shielded their alliance.
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The U.S. Department of Transportation (DOT) has finalized its decision to terminate the Joint Cooperation Agreement (JCA) between Delta Air Lines and Aeromexico, revoking the antitrust immunity (ATI) that shielded their alliance. The measure, detailed in Final Order 2025-9-8, will take effect on January 1, 2026, forcing the airlines to dissolve their integrated joint venture.
The DOT's determination is based on a series of actions by the Government of Mexico which, according to the U.S. entity, distort competition and violate the Air Transport Agreement between the two countries. Specifically, the regulator states that the current alliance exacerbates an already anticompetitive market environment, creating "unacceptable actual and potential harm for stakeholders, including consumers."
Among the actions by the Mexican government cited in the document are the confiscation of slots from U.S. carriers, the prohibition of all-cargo operations at Mexico City International Airport (MEX), and the maintenance of a slot allocation regime that fails to meet international standards and benefits Aeromexico.
According to the DOT order, these conditions remove the incentives for the Delta and Aeromexico alliance to pass on economic benefits to passengers, such as better services, lower prices, and increased capacity. The entity concludes that, in this context, maintaining antitrust immunity is not in the public interest, as it grants an unfair advantage to the partners and substantially reduces competition.
The DOT was emphatic in its analysis, explaining that the current regulatory environment in Mexico undermines the pillars of an Open Skies agreement. The order states that a pro-competitive framework is essential for immunized alliances to function correctly. Without it, the likelihood of higher fares, stifled innovation, and reduced capacity becomes "not just possible, but likely."
Despite the termination, the DOT leaves the door open for the future. The order specifies that the airlines' 2022 renewal application for immunity remains suspended, not denied. This means that "if conditions change again, Delta and Aeromexico will have the opportunity to refresh the record and seek to demonstrate that a new joint venture will meet statutory standards."
The transition period until January 1, 2026, is intended to give the airlines time to unwind their joint operational structure in an orderly manner, adjust their networks, and minimize disruptions for passengers with existing tickets.
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