Aeromexico, Delta secure stay motion vs DOT in its JV case
The Department of Transportation (DOT) wanted Aeromexico and Delta to dismantle the JV by January 1, 2026.
Aeromexico and Delta Air Lines have secured a win in their case versus the Department of Transportation (DOT), with the United States Court of Appeals for the Eleventh Circuit granting a motion to pause the DOT’s order pending a resolution.
On November 12, the US Court of Appeals for the Eleventh Circuit filed a short motion, which, in addition to partially sealing their motion, also granted the two airlines a win in their case versus the DOT as the court allowed the pair to continue their joint venture (JV) until the review of their case is completed.
While the circuit judges did not provide their arguments, the court also informed the DOT’s representative that they had failed to file a certificate of interested persons (CIP). “If you are an appellant or petitioner, pursuant to 11th Cir. Rules 26.1-5(c) and 42-1(b), this appeal will be dismissed without further notice upon the expiration of 14 days from the date of this notice unless you remedy the default(s),” it said.
(The CIP might not have been filed due to the US government shutdown.)
The two airlines launched the suit against the DOT on October 9, attaching the Department's order to end their JV.
In essence, the Department argued that not only had it not renewed antitrust immunity (ATI) for the JV, but it also ordered that the partnership be dismantled by January 1, 2026, because of the actions taken by the Government of Mexico (GoM).
According to the DOT, the Mexican government has “continued along a path of market intervention and distortion that adversely affects competition” in the US-Mexico air market, with the government also violating the two countries’ air transport agreement (ATA).
“[…] the GoM confiscated slots, prohibited all-cargo operations at Mexico City’s primary airport, Benito Juarez International Airport (MEX), perpetuated a slot allocation regime that does not meet international standards and advantages Aeromexico, and generally demonstrated that, at any time, the GoM may upset aviation operations and long-term commercial planning by airlines through arbitrary action.”
The Department stated that while the competitive environment might improve, and that the GoM has begun engaging with the DOT to discuss the latter’s concerns, “it will take time before the Department is able to assess the GoM’s willingness and ability to come back into and remain in full compliance” with the ATA.
However, the DOT noted that since Delta Air Lines has a 20% stake in Aeromexico, it could “be a powerful economic incentive to continue cooperation, subject to the antitrust laws,” and that the pair already have “considerable flexibility to compete in the market and to work together to maintain and enhance their joint offerings.”
In their response that was filed on October 24, which included the request to pause the DOT’s January 1, 2026, deadline to dismantle the JV until the court reaches a verdict, the two said that the DOT held Delta Air Lines to “a more stringent standard” than its competitors, “failed to acknowledge or explain its departure from prior precedents, and relied on unsubstantiated, irrelevant, and speculative reasoning, key pieces of which were offered by the Department for the first time in its final Order.”
“Delta is likely to succeed in its challenge to that Order.”
The US carrier warned that if the court does not grant a stay, the order will “immediately and irreparably” harm Delta Air Lines, forcing it to dismantle its “operationally complex” JV with Aeromexico, even if the court eventually rules in favor of the two airlines.
“Because this Court is likely to vacate the Department’s deeply flawed Order, because Delta is facing substantial irreparable harm from unwinding the Joint Venture, and because the equities favor leaving that procompetitive alliance in place, the Court should stay the Order.”
Delta Air Lines requested a ruling by November 14, arguing that it already has to plan its schedule for the peak summer 2026 season, and without the JV, it will probably have to significantly cut its flights to Mexico. The latter part was only a guess, since it was redacted by the court.
Rytis Beresnevicius
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