Fresh off its success in breaking up an alliance between JetBlue and American and ruling out a merger of JetBlue and Sprint, the U.S. government has ordered Delta and AeroMexico to break up their years-old joint venture, setting an October date for the wind-up.
The arrangement, in place since 2016, allows the two airlines to essentially operate as a single carrier in the markets covered, similarly to the joint ventures that are in place in trans-Atlantic markets with Delta, Air France and Virgin Atlantic in one joint venture and American and British Air in another.
The Delta-Aeromexico venture was due for reauthorization when the Department of Transportation balked, complaining that the Mexican government and its Mexico City airport had taken anti-competitive steps to squeeze other carriers out of airport slots in favor of the joint venture.
The airlines have asked for a month’s delay in a final ruling by DOT, which would extend the decision date to March and allow the airlines to come up with changes or arguments that could lead to a change of heart by DOT.
