Key Takeaways

  • A federal appeals court has temporarily blocked a US Department of Transportation order.
  • The order required Delta Air Lines and Aeroméxico to unwind their joint venture.
  • The airlines have challenged the DOT’s directive, arguing it would impose significant financial and operational harm.

Strategic Implications

This development may suggest that the airlines’ efforts to challenge the government’s order are gaining traction. The fact that the court has granted an emergency stay indicates a level of concern among regulators about the potential impact on air travel in the US-Mexico market. However, it is unclear whether this will ultimately lead to a reversal of the DOT’s decision or if the airlines will be forced to comply with the original order.