The U.S. Department of Transportation has given Delta and Aeromexico until Feb. 23 to submit objections to its tentative decision to terminate their joint venture.
Meanwhile, Delta is requesting that the DOT take a different tack to resolve a dispute with Mexico that led to its decision to terminate.
"Simply put, the department's tentative proposal is bad industrial policy, bad for the U.S. economy, bad for local communities, bad for transborder competition and bad for U.S. aviation interests," Delta said.
Terminating the joint venture alliance, the carriers say, would lead them to cut routes and reduce frequencies on transborder operations.
The DOT issued a tentative order on Jan. 26 denying Delta and Aeromexico's request for an extension of antitrust immunity, which allows the two carriers to jointly schedule, market and operate flights between the U.S. and Mexico.
The DOT moved to terminate antitrust immunity due to Mexico's recent prohibition on cargo service at Benito Juarez International Airport in Mexico City as well as Mexico's capacity reductions on commercial service at the airport.
Mexico president Andres Manuel Lopez Obrador is imposing the restrictions at Benito Juarez while pushing more service to the new military-run Felipe Angeles Airport just outside of Mexico City. The capacity reduction at Benito Juarez violates the air transport agreement between the U.S. and Mexico, the DOT says. Adherence to that agreement is a necessary condition for any partnership between a U.S. and Mexican airline to receive antitrust immunity.
Delta and Aeromexico had requested to have until March 9 to respond to the DOT order. Instead, the DOT decided to give the carriers until Feb. 23 to respond, which is two weeks beyond the original deadline the department had set of Feb. 9.
Delta is also asking the Biden administration to take a more procedural approach with continued consultation with Mexico and a request for arbitration if the dispute isn't settled.
Plus, Delta is requesting that the DOT consider actions that specifically punish Mexico and Mexican airlines, potentially including restricting the operations of Mexican airlines to and from the U.S.