The US administration has ordered Delta Air Lines to scrap its existing joint venture partnership with Aeroméxico.
Delta has until January 1 to end the arrangement.
The JV partnership allows the two airlines to cooperate on flight scheduling, pricing, marjeting and other operational collaboration for transborder flights between the US and Mexico.
It is the latest move by the US against Mexico due to anti-competitive measure taken by Mexico, the US says.
The Department of transportation said: “It is necessary due to the ongoing anti-competitive effects in the markets between the United States and Mexico City that provide an unfair advantage to Delta and Aeroméxico.”
Delta has a 20% ownership stake in Aeroméxico but isn’t compelled to divest.
Aeroméxico said the decision ‘ignores the benefits the alliance has provided to connectivity, tourism, and consumers in Mexico.’
“All flights will continue to operate as normal, unless otherwise contacted ,” Delta said.
