The Trump administration orders Delta, Aeromexico to relax the joint venture by January 1

The Trump administration ordered Delta airlines And Aeromexico to finish by January 1, their joint venture of almost ten years which allows them to coordinate the schedules and prices of flights between the United States and Mexico.

“This action is necessary because of the continuous anti-competitive effects on the markets of the American-mexic city which provide an unjust advantage in Delta and Aeromexico as two predominant competitors and create real and potential damage that is unacceptable for stakeholders, including consumers,” said the Department of Transport in a file late Monday.

Delta and Aeromexico declared in separate declarations according to which the carriers were disappointed by the ministry’s decision and examined the order before considering the following steps. Delta said that “would cause significant damage to jobs, communities and consumers traveling between the United States and Mexico”.

Aeromexico said that carriers will continue to offer flights to the other airline as well as the reciprocity of the frequent leaflet program, in which customers can win and burn miles.

The Biden administration had weighed the withdrawal of antitrust immunity for joint venture, which began in 2016. The dispute with Mexico is part of a series of long-standing complaints in the United States about the competition between the two countries.

The Transport Service proposed to relax the company in July, leading the airlines to oppose. The two airlines responded in a file, saying that the partnership has generated $ 310 million for the US economy and, if it was unrolled, would result in a loss of economic services for the United States, while the market will be captured by their competitors.

Monday’s order does not change Delta’s participation in 20% in Aeromexico.