Delta – AeroMexico JV Restored by Court |

Delta and AeroMexico began operating a code-sharing joint venture in 2016, which operated unimpeded until 2025, when the Trump administration reversed its earlier position and issued a Department of Transportation order to terminate the joint venture. The carriers appealed the decision to the 11th circuit, which stayed the DOT action and has now reversed the DOT order, permanently reinstating the JV. The court found that signaling out this JV when others with similar provisions were not so ordered was arbitrary and capricious. The agreement has coordinated routes, schedules, pricing, capacity, and revenue sharing on cross-border flights between the US and Mexico, including SkyTeam benefits on both airlines. The Delta - AeroMexico JV has operated continuously and successfully since 2016. [caption id="attachment_196918" align="aligncenter" width="640"] Image: The Points Guy[/caption] Overstepping Authority The Trump administration disagreed with Mexico over aviation policy and slots and Mexico City airport, and in retaliation took actions to block the joint venture. But the two participants, who found the arrangements financially and operationally beneficial, sued to maintain their agreement and won their case. From tariffs to border crossings, the Trump administration has taken an act first- ask permission later approach to regulatory matters that are typically the responsibility of Congress. In several instances, courts have reversed those actions, including the repayment of tariffs charged to companies and paid by US consumers. It appears from the ruling that the DOT overstepped its authority in its failed attempt to break-up the joint venture last year, and is another example of courts upholding the rule of law against the executive branch. Different Tone to Reactions Delta stated “we appreciate the 11th Circuit’s careful review and remain focused on ensuring our customers, employees, and communities continue to benefit from this longstanding partnership.” For its part, AeroMexico was more circumspect, indicating that the carrier “is reviewing the Court’s opinion and potential next steps with Delta and its legal advisors and will keep the market informed of any material developments going forward.” ??It appears that AeroMexico remains skeptical of the Trump administration, which abrogated the USMCA agreement initially negotiated by Trump during his prior administration. Given the unpredictability of United States trade policy, one can appreciate their skepticism that the decision is final, or that the administration can be trusted to keep its word. The Bottom Line It appears that the joint venture, which was successful for both parties, will continue unabated, but likely with some hard feelings from the Mexican side. The international soft-power of the US as a trustworthy trade partner has been diminished by the mercurial and unpredictable nature of the Trump administration and its cancellation of USMCA. The long-term impacts will likely be seen for years to come, even after the 2028 presidential election.

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