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US DOT moves to end Delta-Aeromexico JV despite new US-Mexico slot agreement
US Department of Transportation maintains decision to revoke Delta-Aeromexico joint venture immunity amid ongoing legal and regulatory disputes over Mexico City airport slot restrictions.
The gist
DOT rejects US-Mexico slot access deal as insufficient and pursues ending Delta-Aeromexico JV antitrust immunity.
Continuing coverage
All Mexico City Airport →The US Department of Transportation (DOT) is pressing ahead with its effort to terminate the joint venture between Delta Air Lines and Aeromexico by rescinding the antitrust immunity that allowed their partnership to operate competitively. This move comes despite a recent memorandum of understanding between US and Mexican officials aimed at resolving broader concerns regarding competition and slot access at Mexico City International Airport.
In 2025, the DOT rescinded antitrust immunity for the Delta-Aeromexico JV, citing Mexico’s restrictions on flights at Mexico City International Airport as unfairly disadvantaging US airlines other than Delta, therefore distorting competition. The department also asserted that Mexico’s policies violated provisions of the US-Mexico Air Transport Agreement. Delta subsequently appealed the decision in federal court last October and was permitted to maintain the partnership during the appeal process, which remains pending.
On May 5, the DOT announced it had signed a memorandum of understanding with Mexico outlining a framework to bring Mexico’s slot policies into alignment with international norms. According to the DOT, Mexico committed to halting behaviors deemed anticompetitive with respect to slot allocation at Mexico City International Airport. Delta, in a June 4 submission to the appeals court, highlighted this agreement as potentially relevant, suggesting that competitive concerns could be addressed without terminating the JV.
The DOT, however, disagreed strongly in its June 15 filing, emphasizing that the memorandum is a non-binding document that does not resolve any competition issues. The department insisted that Mexico must demonstrate concrete regulatory reforms and changes in competitive dynamics to merit reconsideration. Only if Mexico implements such reforms could Delta and Aeromexico potentially seek renewal or new approvals for antitrust immunity.
The dispute centers on Mexico’s 2022 decision to restrict flights at Mexico City International Airport and relocate US carriers and cargo operators to the new Felipe Angeles International Airport, located farther from the city. Mexico reduced the number of available slots and reclaimed slots previously held by US airlines at Mexico City, measures that the DOT characterized as nontransparent and severely limiting US carrier access.
The DOT specifically noted that such policies accord an unfair advantage to Delta and Aeromexico by protecting their dominant position at Mexico City International Airport. This viewpoint supported the department’s 2025 decision to revoke immunity for the JV. The US-Mexico memorandum includes Mexico’s commitment to adopt slot policies that align with international best practices and guarantees fair and transparent access for US carriers seeking to operate at Mexico City International.
Legal arguments will continue in court as attorneys for both the DOT and the airline partners prepare for oral arguments scheduled on June 22. Meanwhile, Delta has not publicly responded to recent DOT filings or requests for comments. The outcome will significantly impact competition and operational rights of US carriers in the Mexico City market.
This dispute exemplifies ongoing challenges in bilateral air service agreements, especially when slot allocation at congested airports impacts competitive balance. Mexico’s new airport policies aim to balance domestic infrastructure development priorities with international obligations, but regulatory uncertainties persist. The DOT’s insistence on evidence-based reforms underscores US authorities’ vigilance to protect their carriers’ market access against perceived restrictive foreign aviation policies.
Future developments will hinge on Mexico’s willingness and ability to implement transparent slot management reforms at Mexico City International, as well as judicial rulings on the legality of the DOT’s revocation of antitrust immunity for the Delta-Aeromexico JV. For Delta and Aeromexico, continued uncertainty complicates strategic planning and could affect their collaborative operations in North America’s highly competitive aviation market.
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IndiGo Halts Leased Widebody Flights, Awaits Airbus A350 to Restart Long-Haul Service
India’s largest airline, IndiGo, will suspend its current wide-body flight operations from October 25, 2026, marking a temporary halt to its early long-haul experiments while it awaits delivery of its own Airbus A350-900 fleet. ezstandalone.cmd.push(function () { ezstandalone.showAds(119); }); The decision, announced on July 31, also ends the airline’s damp-lease (ACMI) agreement with Norway’s Norse Atlantic Airways. Under this arrangement, six Boeing 787-9 aircraft had been operating selected India-Europe routes since early 2025. IndiGo entered the partnership to accelerate learning in long-haul operations, develop crew and network capabilities, and establish brand presence ahead of its A350 arrivals, originally expected from 2027. ezstandalone.cmd.push(function () { ezstandalone.showAds(127); }); The leased Dreamliners enabled services to destinations including London Heathrow, Amsterdam, Manchester, and others. External Pressures Force ACMI Closure However, the operating environment deteriorated markedly. Airspace restrictions linked to Middle East geopolitical tensions forced longer routings, while elevated fuel prices, currency pressures, and rising costs eroded route efficiency, schedule reliability, and competitiveness. ezstandalone.cmd.push(function () { ezstandalone.showAds(128); }); As a result, Mumbai–Amsterdam flights will switch to IndiGo’s Airbus A321XLR narrowbodies from October 25. London Heathrow services will be temporarily discontinued until the A350-900s arrive. Photo Credit: IndiGo The airline has stressed that its broader international expansion plans remain intact, with continued growth via the A321XLR and eventual deployment of its 60 ordered A350s. IndiGo has pledged to support affected passengers through alternative arrangements or refunds. ezstandalone.cmd.push(function () { ezstandalone.showAds(129); }); From Norse Atlantic’s perspective, the parties mutually agreed to end the ACMI partnership effective November 1, 2026. One of the six 787-9s had already been scheduled for return at the end of August following IndiGo’s earlier closure of its Manchester route. The remaining five will now also be redelivered. Norse Atlantic Perspective Norse CEO Eivind Roald described the 18-month collaboration as valuable but noted that elevated fuel prices, airspace disruptions, and longer flight routings from the Middle East conflict had undermined commercial viability for both sides. ezstandalone.cmd.push(function () { ezstandalone.showAds(130); }); “We have jointly concluded that alternative deployment of the aircraft will be more commercially beneficial to both parties,” Roald said. The returned aircraft will give Norse greater flexibility. The carrier is in discussions with multiple airlines for new ACMI placements covering up to five jets and plans to deploy part of the fleet on profitable winter routes, including services from Europe to Orlando and New York. This capacity boost also supports Norse’s ongoing strategic review. Following interest from potential counterparties, the board has launched a formal process that could lead to a sale, merger, or strategic partnership, aiming to enhance long-term shareholder value. ezstandalone.cmd.push(function () { ezstandalone.showAds(131); }); Photo Credit: IndiGo Conclusion The episode highlights the challenges facing long-haul operators in a volatile geopolitical climate. For IndiGo, the pause represents a prudent short-term recalibration rather than a retreat from international ambitions. The airline built its success on a disciplined narrowbody model and views the A350 programme as the foundation for genuine long-haul growth. For Norse Atlantic, the end of a major ACMI contract that once covered half its fleet creates both near-term redeployment opportunities and strategic optionality. As IndiGo transitions its European network and prepares for its own widebodies, and as Norse seeks new partners or structural change, both carriers are adapting to an industry environment where flexibility and cost discipline have become essential. ezstandalone.cmd.push(function () { ezstandalone.showAds(132); }); The temporary cessation of IndiGo’s leased widebody flying underscores how external shocks can reshape even carefully planned expansion strategies, while reinforcing the airline’s long-term commitment to connecting India with the world.
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United Airlines CEO Claims Only Two Premium Airlines Will Last as Service Complaints Mount
United CEO Scott Kirby says only two premium airlines can exist, but passenger photos of broken tray tables, dirty seats, and a battered club sofa are not helping United's case. Also Avios devaluation risk, Singapore Airlines' new first class concierge trial, DFW's plan to buy the Hyatt Regency, and a useful Blacklane credit stack.
Lufthansa's A350 Premium Economy Becomes Top Choice for US-Europe Travelers
Over the past few years, cash prices for long-haul business class seats have surged across major US to Europe routes, driven by relentless premium demand and dynamic pricing algorithms. At the same time, standard economy cabins remain notoriously crammed on 8- to 11-hour transatlantic crossings. For travelers paying out of pocket or working within strict corporate travel policies, the decision is now to endure an uncomfortable overnight flight in economy, or fork over upwards of $4,000 for a lie-flat bed.
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