Delta Air Lines and Aeromexico have mobilized a broad coalition to challenge a decision by the US Department of Transportation (DOT) that could dismantle their joint business arrangement.
This alliance includes a diverse group of businesses, trade organizations, lawmakers, and governors who have collectively submitted over 60 letters to the DOT, advocating for the reconsideration of a preliminary decision made in January.
The contested decision would not renew an antitrust exemption, essential for the continuation of the Delta-Aeromexico partnership, citing repeated violations by Mexico of the US-Mexico air transport agreement related to capacity reductions at Mexico City’s Benito Juarez International Airport and the forced relocation of airlines to the new, more distant Felipe Angeles International Airport.
Industry Giants Join Forces to Support Delta-Aeromexico
Prominent supporters, such as Airbus and major automakers Ford Motor Company, General Motors, and Stellantis, argue that the joint operations between the US and Mexico are crucial for their logistics and operations. They, along with Delta and Aeromexico, contend that the DOT’s stance could lead to a reduction in US-Mexico flights, negatively impacting jobs and economic activities.
In contrast, the DOT’s tentative decision has been met with approval from other US airlines, while Delta and Aeromexico warn of potential flight cuts and economic fallout. They suggest that the US should address its grievances directly with the Mexican government, possibly through arbitration, rather than penalizing airlines, communities, and consumers.
Legislative Concern: Senators Highlight Risks to Jobs and Trade
Jeffrey Knittel, chief executive of Airbus Americas, in a February letter to the DOT, stated, “I respectfully ask that you reconsider this proposal.” He emphasized the proposal’s potentially detrimental effects on the economy, air travelers, and communities dependent on US-Mexico air routes.
Furthermore, US Senators Amy Klobuchar and Tina Smith of Minnesota have expressed concerns over the impact of terminating the Delta-Aeromexico partnership. In a 13 March letter to US Transportation Secretary Pete Buttigieg, they highlighted the risk to “91,000 jobs and $2.8 billion in trade activity,” underscoring the significant economic stakes involved in the DOT’s decision.
