Wall Street Breakfast DOT grounds Delta-Aeromexico venture
Sep 16, 2025
Delta and Aeromexico face a significant regulatory shake-up as they're ordered to dissolve their joint venture by 2026. In other news, Trump's nominee Stephen Miran is confirmed as a Federal Reserve governor. Webtoon experiences a surge after Disney invests in the platform and launches new comics. Plus, Oracle's stock rises amid rumors of a TikTok deal, and Google announces a massive AI investment in the UK. Dave & Buster's plans to expand with new store openings, aiming for impressive earnings.
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DOT Forces End To Delta-Aeromexico Venture
- The DOT ordered Delta and Aeromexico to unwind their decade-old joint venture citing anti-competitive effects in the U.S.-Mexico market.
- The partnership's antitrust immunity let the airlines coordinate schedules, pricing, and capacity across routes, prompting regulatory pushback.
Watch For Legal Response And Investor Signals
- Expect Delta to review the order and consider legal or regulatory next steps to defend its partnership and claimed economic benefits.
- Investors should monitor airline statements and potential appeals for insights into costs, network changes, and route impacts.
Antitrust Immunity Enabled Deep Coordination
- The joint cooperation agreement granted antitrust immunity that let the carriers deeply coordinate U.S.-Mexico service.
- Regulatory scrutiny intensified after U.S. complaints about Mexican restrictions and policy shifts across administrations.