Trump Administration Orders Delta And Aeromexico To End Joint Venture Over Antitrust Concerns

The Trump administration ordered Delta Air Lines and Aeromexico to unwind their joint venture by January 1st, according to CNBC. The partnership, which began in 2016, allowed the carriers to coordinate schedules and fares between the U.S. and Mexico. The Transportation Department said the arrangement created anticompetitive effects in Mexico City markets, harming consumers and giving the airlines an unfair advantage. Delta and Aeromexico said they are reviewing the order before determining their next steps. Delta warned the ruling would harm U.S. jobs, communities, and travelers. The Biden administration had considered withdrawing antitrust immunity for the joint venture amid broader U.S. complaints over competition with Mexico. The order does not affect Delta’s 20% equity stake in Aeromexico.