U.S. threatens Mexican airline flights over cargo, competitors points

The Trump administration stated on Saturday it’s taking a sequence of actions in opposition to Mexico over the Mexican authorities’s selections to rescind some flight slots for U.S. carriers and power U.S. cargo carriers to relocate operations in Mexico Metropolis.

U.S. Transportation Secretary Sean Duffy stated in a press release the division may disapprove flight requests from Mexico if the federal government fails to handle U.S. considerations over selections made in 2022 and 2023. The division can be proposing to withdraw antitrust immunity from the Delta Air Traces three way partnership with Aeromexico to handle aggressive points out there.

Mexico is the most well-liked worldwide vacation spot amongst U.S. airline vacationers.

Delta stated if the U.S. Division of Transportation withdraws approval, it “would trigger important hurt to shoppers touring between the U.S. and Mexico, in addition to U.S. jobs, communities, and transborder competitors.”

The Transportation Division stated Mexico has not been in compliance with a bilateral air settlement since 2022 when it abruptly rescinded slots after which pressured U.S. all-cargo carriers to relocate operations in 2023.

Mexico’s Transport Ministry and main Mexican airways, together with Aeromexico, couldn’t be instantly reached for remark.

Duffy stated Mexico was anticipated to finish development to alleviate congestion  at Mexico Metropolis’s Benito Juarez Worldwide Airport (MEX), however that has but to materialize three years later.

“By proscribing slots and mandating that all-cargo operations transfer out of MEX, Mexico has damaged its promise, disrupted the market, and left American companies holding the bag for tens of millions in elevated prices,” the division stated.

The USDOT additionally stated it may take motion in opposition to European international locations over limitations at airports. “We’re monitoring European States to make sure that they apply the Balanced Method course of for noise abatement at their airports and don’t implement unjustified operational restrictions,” the division stated.

The Transportation Division issued a pair of orders requiring Mexican airways to file schedules with the division for all their U.S. operations by July 29 and requiring prior U.S. approval earlier than working any massive passenger or cargo plane constitution flights to or from the US.

“Mexico has altered the taking part in subject considerably for airways in ways in which cut back competitors and permit predominant rivals to achieve an unfair benefit within the U.S.-Mexico market,” the division stated. “Mexico’s actions hurt airways in search of to enter the market, current competitor airways, shoppers of air journey and merchandise counting on time-sensitive air cargo shipments traded between the 2 international locations, and different stakeholders within the American economic system.”

If the U.S. rescinds antitrust approval for Delta and Aeromexico, they’d be required to discontinue cooperation on frequent pricing, capability administration, and income sharing, however Delta would additionally have the ability to retain its fairness stake in Aeromexico, keep all of its current flying within the U.S.-Mexico market unimpeded and proceed a partnership.