The U.S. The Department of Transportation ordered Delta and Aeromexico to dismantle their joint venture that allows them to make flights between the U.S. and Mexico by Jan. 1.
The U.S. The Department of Transportation ordered Delta and Aeromexico to dismantle their joint venture that allows them to make flights between the U.S. and Mexico by Jan. 1. File Photo by Bill Greenblatt/UPI UPI
Sept. 16 (UPI) -- The U.S. The Department of Transportation ordered Delta and Aeromexico to dismantle their joint venture that allows them to make flights between the U.S. and Mexico by Jan. 1.
The Transportation Department said in a filing late Monday that the breakup was necessary to prevent harm to consumers brought on by the joint venture.
"This action is necessary because of ongoing anti-competitive effects in U.S.-Mexico City markets that provide an unfair advantage to Delta and Aeromexico as two predominant competitors and create unacceptable actual and potential harm for stakeholders, including consumers," the Transportation Department said.
Both Delta and Aeromexico said they were disappointed by the decision.
"We are disappointed that the Department of Transportation has chosen to terminate its approval of the strategic and pro-competitive partnership between Delta and Aeromexico, a decision that will cause significant harm to U.S. jobs, communities, and consumers traveling between the U.S. and Mexico. We are reviewing the Department's order and considering next steps." Delta said in a statement.
Aeromexico said it will continue to offer flights on the two airlines and Delta said all flights would continue to operate normally.
The Transportation Department had proposed to unwind the venture in July, but the airlines responded by saying that the partnership's separation would be an economic loss for the U.S., as between the two, it makes $310 million for the U.S. economy.