U.S. asks judge to allow order to terminate Delta Air Lines-Aeromexico partnership
The Department of Transportation has asked a judge to reject Delta Air Lines' request to pause an order to force the Atlanta-based airline and Aeromexico to dissolve their longtime partnership.
In September, U.S. Transportation Secretary Sean Duffy announced that the Transportation Department is revoking the antitrust immunity the airlines have had since 2016, which allowed them to price and schedule their flights jointly and share revenue.
Duffy argued it doesn't make sense to maintain that arrangement as long as Mexico is giving its domestic airlines an unfair advantage through the limits it placed on passenger and cargo flights into Mexico City several years ago.
In its filing, the Transportation Department called the relationship between the two airlines "legalized collusion" and said that terminating the agreement supports the public interest.
In response, Delta filed suit in the 11th Court of Appeals asking for the court to review the case. The airline also filed a motion to prevent the DOT from enforcing a deadline set by the department's order, arguing that separating the joint venture by that time would be "operationally and financially burdensome."
"The decision for Delta and Aeromexico to petition for review of the DOT's final order is not taken lightly but is our only option at this point in time and procedurally the next step in the process to protect Delta's and Aeromexico's business interests, global networks, and customers," a Delta spokesperson told CBS News Atlanta in a statement. "Additionally, Delta and Aeromexico are inextricably one business in the transborder market operating for the benefit of U.S. consumers."
The two airlines can continue to cooperate, but won't be able to work together as closely. They said in regulatory filings that they believe the loss of direct flights would prompt over 140,000 American tourists and nearly 90,000 Mexican tourists not to visit the other country and hurt the economies of both countries.
If a judge rules against the airline, the order would take effect on Jan. 1, 2026. Until then, there won't be any changes to flights or loyalty programs at the airlines.
The Associated Press contributed to this report.