The Department of Justice has recommended that the Department of Transportation deny Delta Air Lines and Grupo Aeromexico antitrust protections that allows the carriers to plan and price flights jointly because "restrictive and potentially discriminatory" practices by the Mexican government have limited competition.
The Transportation Department has alleged that Mexico has been acting outside of a 2015 agreement since 2022 by taking slots away from U.S. carriers at Benito Juarez airport outside Mexico City and restricting air cargo flights there, Bloomberg reported last month.
The move was part of Mexican efforts to drive cargo traffic to the newly built airport.
"Because competitive open market access is critical to mitigate the potential loss in competition that may result from a grant of antitrust immunity to an international airline alliance, DOJ supports DOT's tentative decision not to renew antitrust immunity for the [Delta-Aeromexico alliance]," Assistant Attorney General Abigail Slater wrote in a Monday filing.
"The record evidence suggests that restrictive and potentially discriminatory practices by the Government of Mexico have limited entry and expansion by certain carriers at MEX [Benito Juarez airport] and thereby undermined competitive conditions in Mexico, thwarting open market access on routes between Mexico and the United States."
The role of the Department of Justice in providing comments to the Department of Transportation on antitrust immunity requests is "vitally important," according to the American Antitrust Institute. As an antitrust agency, the Justice Department evaluates competitive issues under a "no competitive harm" standard, which differs from the broader, regulatory public interest standard used by the Transportation Department.
Mexican airlines are now required to file schedules with U.S. authorities and seek approval for large charter flights, according to an order issued by Transportation Secretary Sean Duffy last month, Bloomberg reported.
An additional show cause order proposed withdrawing antitrust immunity for the Delta-Aeromexico joint venture because it no longer "serves the public interest."
"DOJ supports DOT's tentative decision to withdraw its approval and grant of antitrust immunity for the Delta/Aeromexico Joint Venture," Slater wrote. "DOT conducted an analytically rigorous evaluation of the competitive effects of the Joint Venture consistent with its statutory authority and its public interest mandate to consider competitive market forces and the impact of actual and potential competition."
Newsmax has reached out to Delta and Aeromexico for comment.
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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