Aug 11 (Reuters) - The U.S. Department of Justice on

Monday backed a Department of Transportation proposal to revoke

antitrust immunity for the joint venture between Delta Air Lines ( DAL )

and Grupo Aeroméxico, which allows the two carriers to

coordinate on scheduling, pricing, and capacity decisions for

U.S.-Mexico flights.

In a filing, the Justice Department supported the DoT's

position, arguing that the alliance may be stifling competition.

"Competition is particularly valuable in the airline

industry. It drives lower prices, better quality, and more of

the services consumers want."

The alliance was granted antitrust immunity in 2016,

allowing it to go beyond standard codesharing-selling seats on

each other's flights.

However, in January, the DoT said it did not plan to renew

the antitrust immunity after the Mexican government implemented

changes regarding airport slots and operations at Mexico City's

main airport.

Delta and Aeroméxico did not immediately respond to requests

for comment.