The U.S. Department of Justice (DOJ) on Monday endorsed a proposal by the Department of Transportation (DoT) to revoke antitrust immunity for the joint venture between Delta Air Lines (NYSE: DAL) and Grupo Aeroméxico, Reuters reported. The immunity, granted in 2016, allows the carriers to coordinate on flight scheduling, pricing, and capacity for U.S.–Mexico routes.
In a legal filing, the DOJ argued that the alliance may be limiting market competition and harming consumers. “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 alliance was originally approved with the intention of enhancing cross-border connectivity between the United States and Mexico, enabling the airlines to operate as if they were a single carrier for certain routes. However, in January, the DoT announced it would not renew the immunity following changes introduced by the Mexican government regarding airport slot allocation and operational rules at Mexico City International Airport.
The proposed revocation would strip Delta and Aeroméxico of the ability to coordinate commercially beyond the scope of standard codesharing agreements, which typically allow airlines to sell seats on each other’s flights without deeper operational integration.
Delta and Aeroméxico did not immediately respond to requests for comment on the DOJ’s filing.
