US orders Delta and Aeromexico to dissolve their partnership that allowed them to price and schedule their flights jointly and share revenue | Fortune

"Duffy announced Tuesday that the Transportation Department is revoking the antitrust immunity the airlines have had since 2016 that allowed them to price and schedule their flights jointly and share revenue. He said it doesn't make sense to maintain that arrangement as long as Mexico is giving its domestic airlines an unfair advantage through limits it placed on passenger and cargo flights into Mexico City several years ago."

"This airline dispute is another front in the broader trade dispute that has the two countries at odds over President Donald Trump's tariffs and his concerns about border security. Duffy is focused on whether Mexico's actions to force airlines to move out of the main Benito Juarez International Airport to the newer Felipe Angeles International Airport more than 30 miles (48.28 kilometers) away violated a trade agreement between the two countries and gave domestic airlines the advantage."

"Before Mexico forced cargo airlines to start using Felipe Angeles in 2022, all the major international airlines had shunned the airport that is so far from the center of Mexico City that is can take 2 1/2 hours to drive to the terminal. At the same time, Mexico also cut some of the slots available at Benito Juarez to allow for construction at the airport that Duffy says still hasn't happened."

The Transportation Department revoked the antitrust immunity that had allowed Delta and Aeromexico since 2016 to coordinate pricing, scheduling, and revenue sharing. The revocation responds to concerns that Mexico advantaged its domestic carriers by imposing limits on passenger and cargo flights into Mexico City and by shifting operations to the distant Felipe Angeles airport. The action is connected to broader U.S.-Mexico trade tensions related to tariffs and border security. Major international carriers had largely avoided Felipe Angeles because of its long travel time from central Mexico City. Mexico also reduced slots at Benito Juarez for construction that has not occurred.

Read at Fortune