US threatens Mexican airline flights over airline competition issues

The Trump administration said it is taking a series of actions against Mexico over the government's decisions to rescind some flight slots for American carriers and force US cargo carriers to relocate operations in Mexico City.

US Transportation Secretary Sean Duffy said in a statement the department could disapprove flight requests from Mexico if the government fails to address US concerns over decisions made in 2022 and 2023.

The department is also proposing to withdraw antitrust immunity from the Delta Air Lines joint venture with Aeromexico to address competitive issues in the market.

Mexico is the most popular international destination among US airline travellers.

The Transportation Department said Mexico has not been in compliance with a bilateral air agreement since 2022 when it abruptly rescinded slots and then forced US all-cargo carriers to relocate operations in 2023.

Duffy said Mexico was expected to allow construction to alleviate congestion  at Mexico City's Benito Juarez International Airport (MEX), but that has yet to materialize three years later.

"By restricting slots and mandating that all-cargo operations move out of MEX, Mexico has broken its promise, disrupted the market, and left American businesses holding the bag for millions in increased costs," the department said.

The Transportation Department issued a pair of orders requiring Mexican airlines to file schedules with the department for all their US operations and requiring prior US approval before operating any large passenger or cargo aircraft charter flights to or from the United States.

"Mexico has altered the playing field significantly for airlines in ways that reduce competition and allow predominant competitors to gain an unfair advantage in the US-Mexico market," the department said.

"Mexico’s actions harm airlines seeking to enter the market, existing competitor airlines, consumers of air travel and products relying on time-sensitive air cargo shipments traded between the two countries, and other stakeholders in the American economy."

If the US rescinds antitrust approval for Delta and Aeromexico, they would be required to discontinue cooperation on common pricing, capacity management, and revenue sharing, but Delta would also be able to retain its equity stake in Aeromexico, maintain all of its existing flying in the US-Mexico market unimpeded and continue a partnership.