US Court Overturns Order to Dissolve Delta-Aeromexico Venture

The 11th Circuit US Court of Appeals overturned a US Department of Transportation order that required Delta Air Lines Inc. and Grupo Aeromexico to dissolve their transborder joint venture. The court ruled that the government's decision to revoke antitrust immunity for the partnership was "arbitrary and capricious," finding that the department applied a different approval standard than it had for similar joint ventures in Japan.

The Department of Transportation had previously argued that the alliance created an unfair advantage and harmed consumers through slot restrictions at Mexico City's Benito Juárez International Airport. In response, Delta and Aeromexico contended that the order stemmed from a diplomatic dispute with the Government of Mexico and would negatively impact passengers and US jobs.

The ruling preserves the ability of the two airlines to coordinate their marketing, pricing, and frequent flyer programs. This decision effectively restores the antitrust immunity that the government had sought to remove.