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US DOJ Supports Revoking Delta-Aeroméxico Partnership

August 13, 2025By ePlane AI
US DOJ Supports Revoking Delta-Aeroméxico Partnership
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Delta Air Lines
Aeroméxico
Antitrust Immunity

US Department of Justice Supports Revocation of Delta-Aeroméxico Antitrust Immunity

DOJ Endorses DOT Proposal Amid Competition Concerns

The U.S. Department of Justice (DOJ) has formally backed the Department of Transportation’s (DOT) proposal to revoke antitrust immunity granted to the joint venture between Delta Air Lines and Aeroméxico. The DOJ’s position centers on concerns that the partnership diminishes competition within the U.S.-Mexico aviation market, potentially harming consumers and the broader industry.

In its recent filing, the DOJ underscored that antitrust immunity should be reserved for exceptional circumstances where clear public benefits are evident and competition remains robust. The department emphasized the critical role of competition in the airline sector, noting that it fosters lower prices, improved service quality, and a wider array of consumer options.

Background: Open Skies Dispute and Market Access Issues

This development follows the DOT’s announcement last month regarding potential punitive measures against Mexico for alleged violations of the 2015 U.S.-Mexico Air Transport Agreement, commonly known as the open skies agreement. The DOT accused the Mexican government of distorting the aviation market by imposing operational restrictions at Mexico City International Airport. These constraints compelled U.S. cargo carriers to shift operations to the more remote Felipe Ángeles International Airport, thereby undermining competitive conditions and restricting market access for certain airlines.

The DOT has warned that continued non-compliance by Mexico could lead to restrictions on Mexican carriers’ access to the U.S. market and the possible termination of the Delta-Aeroméxico joint venture. Such actions would significantly alter the competitive landscape, potentially limiting market access for the two airlines while creating opportunities for rival carriers to expand their operations, adjust flight schedules, and modify pricing strategies.

The DOJ echoed these concerns, stressing that maintaining competitive open market access is essential to offset the potential reduction in competition that might arise from granting antitrust immunity to an international airline alliance. The department expressed support for the DOT’s tentative decision not to renew the joint cooperation agreement (JCA) between Delta and Aeroméxico.

Responses from Delta and Aeroméxico

In response to the DOT’s proposal, Delta Air Lines defended the joint venture as “unquestionably proconsumer, procompetitive, and pro-American.” The airline highlighted the partnership’s economic contributions, including the creation of nearly 4,000 jobs, an addition of over $310 million to the U.S. GDP, and more than $200 million in annual tourism spending. Delta cautioned that dismantling the agreement could result in the cancellation of up to two dozen routes and the substitution of larger aircraft with smaller ones on many others, outcomes that would advantage competitors at the expense of consumers and employees.

Delta urged the DOT to direct any punitive measures toward the Mexican government rather than the binational business alliance. The airline also praised the DOT’s use of regulatory tools such as Part 213 and Part 212, which impose additional filing and authorization requirements on Mexican carriers operating in the U.S., encouraging the department to leverage these mechanisms to address policy concerns before taking action against the joint venture.

Aeroméxico has yet to issue a public statement regarding the proposed revocation. The situation remains dynamic as regulatory decisions and market responses continue to unfold.

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TPA Expands International Routes as More Travelers Use AI for Planning

TPA Expands International Routes as More Travelers Use AI for Planning

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Cathay Pacific’s Jet Order Signals Shift in Global Aviation Recovery

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Cathay Pacific’s Jet Order Signals Shift in Global Aviation Recovery The global aviation industry is entering a critical phase marked by rising travel demand, technological innovation, and an intensified focus on sustainability. Cathay Pacific’s recent commitment to acquire 14 additional Boeing 777-9 aircraft, increasing its total order to 35 units of the 777X variant, highlights how leading carriers are strategically positioning themselves for sustained growth amid a recovering market. This substantial order follows Cathay Pacific’s report of a modest profit increase in the first half of the year, driven by higher passenger numbers and reduced fuel expenses. The decision is widely interpreted as a strong endorsement of Boeing’s beleaguered 777X program and the broader aerospace supply chain, encompassing manufacturers, engine producers, and maintenance providers. A Supply Chain Renaissance Cathay Pacific’s expanded 777X order reflects the aviation sector’s ongoing transition toward more fuel-efficient and environmentally friendly aircraft. The Boeing 777-9 promises a 20% improvement in fuel efficiency and a 40% reduction in noise emissions compared to its predecessor, the 777-300ER. For Boeing, this order is a vital vote of confidence amid persistent certification delays and production challenges that have plagued the 777X program. Cathay’s commitment underscores its confidence in the aircraft’s long-term operational and environmental advantages. The ramifications extend beyond Boeing itself. The order guarantees demand for General Electric’s GE9X engines, the most powerful commercial turbofans in operation. Cathay has secured 70 GE9X engines alongside comprehensive service and maintenance contracts, ensuring a steady revenue stream for GE Aerospace as it recovers from the disruptions caused by the pandemic. Market Impact and Industry Positioning Market response to Cathay Pacific’s order has been largely positive, reflecting broader optimism about the aviation sector’s recovery trajectory. Valued at over HK$100 billion, the deal underscores two significant investment themes. First, it signals a resurgence in aerospace manufacturing, with Boeing’s ability to secure major orders reinforcing its strategic importance despite ongoing challenges related to 777X certification and 737 MAX liabilities. Second, the order anticipates growth in maintenance, repair, and overhaul (MRO) services. As Cathay’s 777-9 fleet enters service from 2027, demand for specialized MRO will increase, benefiting companies such as Lufthansa Technik, ST Engineering, and AAR Corporation. This trend aligns with airlines’ efforts to retrofit older fleets with eco-friendly technologies amid tightening emissions regulations. Strategic Risks and Competitive Dynamics Despite the positive outlook, Cathay Pacific’s order carries inherent risks. The 777X program’s history of delays raises concerns about Boeing’s ability to meet delivery timelines, which could impede Cathay’s fleet modernization plans and its competitive standing against rivals like Emirates and Singapore Airlines, both of which are investing heavily in next-generation widebody aircraft. While competitor reactions remain uncertain, Cathay’s move may influence future fleet decisions across the industry. Nonetheless, Cathay Pacific’s CEO Ronald Lam has reaffirmed the airline’s confidence in Boeing and the strategic importance of the 777X for the carrier’s future. For investors and industry analysts, the challenge will be to weigh these risks against the strong momentum propelling the global aviation recovery.
Avion Express Philippines Granted Temporary Operating Permit

Avion Express Philippines Granted Temporary Operating Permit

Avion Express Philippines Granted Temporary Operating Permit Avion Express Philippines has taken a crucial step toward its planned launch in November 2025 by securing a temporary operating permit from the Civil Aeronautics Board (CAB). The airline, a subsidiary of Avia Solutions Group, plans to introduce its first Airbus A320-200 prior to the official launch, with two additional aircraft of the same model expected to join the fleet by June 2026. All operations will be based at Clark International Airport in Angeles City, focusing primarily on ACMI (Aircraft, Crew, Maintenance, and Insurance) services. Regulatory Milestones and Operational Challenges While the temporary permit enables Avion Express Philippines to advance its preparations, the airline must still obtain a permanent certificate of public convenience and necessity from the CAB, as well as an air operator's certificate (AOC) from the Civil Aviation Authority of the Philippines (CAAP) before commencing full operations. These regulatory approvals represent significant hurdles, as compliance is critical to establishing a sustainable presence in the Philippine aviation market. Market Context and Competitive Landscape The entry of Avion Express Philippines occurs amid intensifying competition within the Philippine aviation sector. Established carriers are expected to closely monitor the new entrant and may respond with strategic initiatives such as expanding route networks or enhancing service offerings to maintain their market share. The airline’s success will largely depend on its operational efficiency and its ability to differentiate itself in a competitive environment. Avia Solutions Group’s Regional Expansion Strategy Avia Solutions Group is actively expanding its footprint across Southeast Asia and the Pacific to counteract the seasonal fluctuations experienced by its European-based carriers. Recent initiatives include the launch of BBN Airlines Indonesia, the acquisition and rebranding of Australia’s Skytrans as SmartLynx Australia, and ongoing certification processes for Thai SmartLynx Airlines and Ascend Airways Malaysia, alongside the Philippine operation. Concurrently, the group is extending its presence in the Americas through Avion Express Brasil and the newly announced Avion Express Mexico. As Avion Express Philippines approaches its operational debut, industry observers will be attentive to how the airline manages regulatory requirements and competitive pressures, as well as the broader market’s response to its entry.
Curie Technologies’ Software Chosen to Manage DFW Airport Worker Screening Equipment

Curie Technologies’ Software Chosen to Manage DFW Airport Worker Screening Equipment

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Finkenwerder Innovation Park Highlights Collaboration Between Airbus and TUHH

Finkenwerder Innovation Park Highlights Collaboration Between Airbus and TUHH

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Americharter Included in 2025 Inc. 5000 List for Growth in Private Aviation

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Leasing Firms Face Significant Losses After Chinese-Owned Aircraft Detained in Russia

Leasing Firms Face Significant Losses After Chinese-Owned Aircraft Detained in Russia

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easyJet Completes FANS-C Upgrade

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KF Aerospace Powers Up Airline Expansion in 2025 with Major Maintenance and Fleet Integration Deals

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