US DoJ Supports Ending Delta–Aeroméxico Antitrust Immunity

The U.S. Department of Justice (DOJ) has backed a Department of Transportation (DOT) proposal to revoke antitrust immunity for the joint venture between Delta Air Lines and Aeroméxico, arguing that the partnership undermines competition in the U.S.–Mexico market.

In its filing, the DOJ emphasized that exemptions from U.S. antitrust laws should be rare and granted only when consumers benefit without harming competition. “Competition is particularly valuable in the airline industry. It drives lower prices, better quality, and more of the services consumers want,” the department stated.

The DOT announced last month that it was considering revoking the approval due to Mexico’s violations of the 2015 U.S.–Mexico Air Transport Agreement. Among its concerns were government-imposed restrictions at Mexico City International Airport, which displaced U.S. cargo carriers to the less central Felipe Ángeles Airport, limiting access and expansion opportunities.

The DOJ concluded that without open market access, the joint venture could reduce competition and supported the DOT’s decision not to renew immunity.

Delta, however, defended the alliance, calling it “proconsumer, procompetitive, and pro-American.” The airline argued the partnership has created nearly 4,000 jobs, contributed more than USD310 million to U.S. GDP, and generated over USD200 million annually in tourism spending. Delta warned that dissolving the alliance could lead to the cancellation of up to two dozen routes and force the use of smaller aircraft on others.

The carrier urged the DOT to pursue enforcement against Mexico’s government instead of penalizing a binational business venture.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com