Federal authorities warn potential termination of Delta Air Lines' partnership with Aeromexico in aviation industry proceedings
In a series of contentious actions, the United States Department of Transportation (DOT) has been responding to what it perceives as Mexico's failure to comply with the US-Mexico air transport agreement. The crux of the issue revolves around restrictions on US airlines' operations at Mexico City's primary airport, Benito Juarez International Airport.
In July 2025, the DOT took significant steps, including withdrawing antitrust immunity for the joint business between Delta Air Lines and Aeromexico, and imposing new operating restrictions on Mexican airlines flying to the USA, such as the mandatory filing of flight schedules [1][3].
Delta and Aeromexico have urged the DOT to reconsider the withdrawal of antitrust immunity, arguing that the partnership benefits travelers with more service and competitive fares. They warn that its termination could lead to reduced routes and smaller aircraft replacing larger jets [1][2]. Meanwhile, other carriers like Allegiant Air and Viva Aerobus are appealing to the DOT for approval to establish joint businesses, emphasizing the potential for increased competition and lower fares in the Mexican market [1].
The DOT's actions are framed as a response to Mexico's alleged breach of the bilateral air transport agreement, particularly the Mexican government's decision to rescind operating slots at Benito Juarez International Airport traditionally held by US and Mexican airlines and to require some carriers to operate at the more distant Felipe Angeles International Airport [1][3][4].
The revocation of antitrust immunity for the Delta-Aeromexico joint venture is scheduled to take effect on October 25, 2025, pending any reconsideration or legal challenges [4]. It's important to note that the DOT has not yet disapproved any flight requests from Mexico.
This ongoing dispute has disrupted the market, with slot restrictions and the mandate that all-cargo operations move out of Mexico City International Airport costing American companies millions of dollars [5]. The DOT also proposed to withdraw the approval of antitrust immunity for the joint venture operated by Delta and Aeromexico [6].
The broader political and regulatory tussle has left airlines caught in the middle, seeking mitigation or reversal of punitive measures to maintain their joint ventures and services [1][2][3]. The DOT insists its measures aim to address Mexico’s non-compliance while trying to protect US airline interests.
Funds within the finance sector, particularly those invested in the aviation industry, are closely monitoring the escalating political and regulatory dispute between the United States and Mexico, given the potential financial implications of the ongoing tussle on US airlines [7]. The ongoing issue between the DOT and Mexico's government, centered around compliance with the US-Mexico air transport agreement and subsequent operating restrictions, is also a matter of general-news interest, as it affects the overall competitiveness and affordability of air travel between the two countries.
