Lawmakers say Delta’s pact with Aeromexico helps state

They urge DOT not to reverse airline’s key joint venture.

Georgia lawmakers and business leaders are going to bat for Atlanta-based Delta Air Lines, which is facing the cancellation of a key partnership over a dispute between the U.S. government and Mexico about aviation access.

Gov. Brian Kemp and members of Georgia’s con- gressional delegation have urged the U.S. Department of Transportation not to end Delta’s joint venture with Aeromexico, citing poten- tial damage to the state’s economy.

The partnership, which enjoys antitrust immunity, allows the carriers to cooperate on cross-border flights, including some through Hartsfield-Jackson Interna- tional Airport. DOT in Jan- uary made a tentative deci- sion to dismiss the carriers’ application to renew anti- trust immunity.

“I object to this decision, as it would increase costs for consumers, adversely affect Georgia’s economy, and place thousands of jobs at risk,” Kemp wrote in a Feb. 23 letter to Transpor- tation Secretary Pete Butti- gieg. Kemp called the Del- ta-Aeromexico partnership “a critical component of our international trading infra- structure.”

Delta says if the antitrust immunity is rescinded, as many as 21 flights between the U.S. and Mexico would be put at risk. These include including flights from Atlanta launched by Aeromexico this year to Guadalajara, Gua- najuato, Merida and Mon- terrey, as well as a route to Queretaro planned to launch this fall.

Delta is also threatening to take legal action if the DOT finalizes its decision. Peter Carter, Delta’s execu- tive vice president of external

irs, in an interview with The Atlanta Journal-Consti- tution, called DOT’s tenta- tive order “arbitrary and capricious.”

The DOT declined to com- ment.

A joint venture with anti- trust immunity allows two partner airlines to cooper- ate to offer more to travel- ers by filling flights with customers from both airlines and both countries. It’s gen- erally permitted in interna- tional markets only when there are so-called “Open Skies” agreements that lib- eralize restrictions on service between the countries to deregulate airline com- petition.

The DOT said a fully lib- eralized aviation agreement is a “necessary precondi- tion” for the continuation of a joint venture with antitrust immunity. It said “recent actions taken by the Gov- ernment of Mexico have in effect removed the neces- sary precondition.”

The Associated Press reported last year Mexico’s armed forces were taking control of Mexico City Benito Juarez International Airport (MEX), after building an air- port run by the military out- side Mexico Cit y, among other moves, and Mexican President Andres Manuel Lopez Obrador launched a state-run airline led by the military.

The DOT in its tentative order said flight capacity at Mexico City International has been reduced “to the det- riment of both current air carriers and potential new entrants,” and voiced concerns about a lack of trans- parency in how flying rights are allocated.

Letters from Metro Atlanta

Chamber President and CEO Katie Kirkpatrick and one signed by 12 of Georgia’s 14 U.S. House members echoed Kemp’s economic concerns.

Kirkpatrick also told Buttigieg that “the entire world will be watching or visiting our city when eight matches of the FIFA World Cup are played in Atlanta during the summer of 2026″ and that the World Cup overall would have teams participating in 16 cities in North America, including three in Mexico.

“Competing players, team staff, and millions of fans will rely on our air travel networks to reach matches across all host cities throughout the 30-day tournament period,” she wrote.

The League of United Latin American Citizens has also weighed in, saying ending the Delta-Aeromexico joint venture “could mean higher fares and fewer choices for American-Latino families.”

Not everyone is taking Delta’s side.

Rival American Airlines, the leading U.S. carrier in the Latin American market, submitted comments in the federal docket saying Delta and Aeromexico “have benefitted from (antitrust immunity) for more than seven years despite the Department’s consistent concerns regarding the Mexican government’s management” of Mexico City’s airport.

The volume of high-profile supporters Delta has marshaled in its campaign against the DOT decision signifies the company sees this as a seminal matter that could influence its future.

Carter, the Delta executive, acknowledged U.S.-Mexico flights are “a small piece” of the airline’s total business.

“But it’s an enormously important part of who we want to be. We want to be the airline that truly does connect the world,” he said.