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Travelers on US-Mexico Routes May See Lower Fares as Justice Department Backs Pro-Competition Move

WASHINGTON – In a move that could directly benefit air travelers, the U.S. Department of Justice on Monday threw its support behind a proposal to increase competition on routes between the United States and Mexico. The agency backed a Department of Transportation (DOT) plan to end the special antitrust immunity granted to the partnership between Delta Air Lines and Grupo Aeroméxico.

This joint venture, which has been in place since 2016, allows the two carriers to act as a single entity, coordinating everything from flight schedules and ticket prices to capacity decisions. Revoking this immunity would force the airlines to compete with each other, a change that government officials argue will lead to lower prices and better service for consumers.

In its official filing, the Justice Department emphasized the positive impact of open market dynamics. “Competition is particularly valuable in the airline industry,” the department stated. “It drives lower prices, better quality, and more of the services consumers want.”

The DOT first signaled its intention to end the antitrust shield in January, citing recent policy changes by the Mexican government regarding operations at Mexico City’s main airport. The immunity had allowed the Delta-Aeroméxico alliance to operate beyond a standard codesharing agreement, where airlines simply sell seats on each other’s flights.

By championing this change, the Justice Department is reinforcing the government’s position that a more competitive market is essential for protecting consumer interests. If the proposal is finalized, travelers flying between the U.S. and Mexico could soon enjoy more choices and more affordable fares as airlines vie for their business.

Prakash Gupta

Prakash Gupta has been a financial journalist since 2016, reporting from India, Spain, New York, London, and now back in the US again. His experience and expertise are in global markets, economics, policy, and investment. Jamie's roles across text and TV have included reporter, editor, and columnist, and he has covered key events and policymakers in several cities around the world.
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