A US
appeals court has temporarily halted a Trump administration
directive ordering Delta Air Lines Inc. and Aeroméxico to dismantle
their cross-border joint venture, Bloomberg Línea
reported.
A
three-judge panel from the 11th Circuit Court of Appeals in Atlanta
agreed to pause the order whilst the airlines' request for a review
of the directive remains pending. The partnership between the
carriers allows them to coordinate pricing, marketing and loyalty
programmes.
The US
Department of Transportation issued a final order in September
instructing the companies to unwind the joint venture before
January 1. The department argued then that the airlines are
predominant competitors operating between the United States and
Mexico City, giving them an 'unfair advantage', and that their
association presented 'unacceptable real and potential harm to
stakeholders, including consumers'.
The
airlines challenged the order through an appeal filed last month.
Delta, which holds a 20% equity stake in Aeroméxico, welcomed the
court's decision to suspend the directive, according to a
statement.
The
carrier said it remained 'supportive of the Administration's
efforts to hold Mexico accountable in a way that does not harm a US
company or American consumers'. The Department of Transportation
declined to comment.
The joint
venture, established years ago, has enabled both airlines to offer
coordinated schedules, shared revenue and reciprocal benefits
across their networks linking the US and Mexican markets. The
partnership has been particularly significant for connecting
passengers between Delta's extensive US domestic network and
Aeroméxico's dominant position in the Mexican market.
The Trump
administration's move to dissolve the arrangement represented an
escalation in trade tensions with Mexico, with officials citing
competitive concerns in one of the busiest international aviation
corridors in the Americas.
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