US threatens Mexican flights over cargo, competition issues
U.S. Transportation Secretary Sean Duffy said in a statement the department could disapprove flight requests from Mexico if the government fails to address U.S. concerns over decisions made in 2022 and 2023.
The Department of Transportation is also proposing to withdraw antitrust immunity from Delta Air Lines' (DAL.N), opens new tab joint venture with Aeromexico to address competitive issues.
Mexico is the most popular international destination for U.S. airline travelers.
Delta said if the DOT withdraws approval, it "would cause significant harm to consumers traveling between the U.S. and Mexico, as well as U.S. jobs, communities, and transborder competition."
Aeromexico said it was preparing a joint response to the order, which it plans to issue in the coming days.
The DOT alleges Mexico has violated a bilateral air agreement by slashing slots for passenger flights and forcing all-cargo carriers to relocate operations.
Then-President Andres Manuel Lopez Obrador defended the decisions, arguing that the capital's main airport was too crowded and that the new, farther-away Felipe Angeles International Airport (AIFA) could handle the extra traffic.
Officials are rushing to renovate the aging Benito Juarez International Airport (MEX) ahead of next year's World Cup, for which Mexico is a host country.
"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 DOT said.
The AIFA is already at full capacity for cargo handling and needs to be expanded. For passenger flights, it lags far behind MEX as transportation to and from the city remains spotty.
"The move not only disrupted critical air cargo operations and set a dangerous precedent for how all-cargo carriers may be treated in global markets, it also created uncertainty about how potential safety emergencies could be handled," said the Cargo Airline Association, which represents major U.S cargo carriers.
Mexico's Transportation Ministry did not immediately respond to a request for comment.
The DOT issued orders requiring Mexican airlines to file schedules with the department for all their U.S. operations by a late-July deadline while requiring prior U.S. approval for large charter flights to or from the United States.
Airlines set to be affected by the measures, including Volaris (VOLARA.MX), opens new tab and Viva Aerobus, did not immediately respond to requests for comment.
If the U.S. rescinds antitrust approval for Delta and Aeromexico, they would be required to end their cooperation on pricing, capacity, and revenue sharing. Delta would be able to retain its equity stake in Aeromexico and continue other aspects of its partnership.
The DOT also said it could take action against European countries over limitations at airports.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
an hour ago
- Telegraph
Wizz Air quit Gulf after Abu Dhabi went back on deal, boss says
Wizz Air's decision to quit the Middle East was triggered by a row with its Abu Dhabi government partner over alleged favouritism shown to the Gulf state's airline, its chief executive has said. The budget airline last week suspended all flights from its Abu Dhabi hub, blaming the 'hot and harsh' climate, as high temperatures and sand particles degraded its engines. But Jozsef Varadi, chief executive of Wizz Air, told The Telegraph that the move was also driven by curbs imposed on its local division by the Abu Dhabi authorities. These included a refusal to let Wizz Air Abu Dhabi – a joint venture between Abu Dhabi and the airline – fly to India and Pakistan as previously agreed, despite the two countries having granted it access rights. Mr Varadi said the move was probably designed bolster Abu Dhabi's airline, Etihad, which is owned by the Gulf state. 'Six years ago, Abu Dhabi was booming and the whole system was supportive of bringing in an ultra-low-cost carrier,' he said. 'Everyone was contributing, without any discrimination between the home airlines. But that changed and it became a case of Etihad first, with everyone else subordinated. 'That is not what we agreed when we made a commitment to invest in Abu Dhabi and it's not a game we're prepared to play. We said at the beginning that we would not be coming to be a second-class citizen.' Wizz last week said it was abandoning the joint venture, which was established with the Abu Dhabi's sovereign wealth fund ADQ in 2019. Mr Varadi said the launch of flights to the Indian subcontinent had always been the venture's ultimate goal, with the region accounting for 60pc of the travel market from Abu Dhabi. He said: 'We all had an understanding that we would be accessing markets like India and Pakistan. It was specifically mentioned in our investment memorandum. 'We got designated by Abu Dhabi and we started working with India and Pakistan and both of them approved our designation. 'But at that point Abu Dhabi changed its mind and they decided to remove our designation and hand that over to Etihad. So we were excluded from more than half of the market. That is not acceptable and not how we do business.' Mr Varadi said the change in attitude coincided with the deepening of government efforts to focus Etihad more on local travel needs, rather than have it compete in global markets with Emirates and Qatar Airways. Etihad slashed its aircraft order book and cut long-haul routes as a result of the rethink, and in October 2022 came under the ownership of ADQ, which also held a 51pc stake in Wizz Air Abu Dhabi, to Wizz's 49pc. 'People don't like flying over war zones' The chief executive said the escalating conflict in the Gulf has also influenced the decision to quit the region, with a quarter of Wizz flights forced to divert in the past 12 months, increasing costs and putting off travellers. He said: 'Demand is a lot weaker than before. People don't like flying over rockets and war zones, and this has become a regional conflict. It's no longer local.' Wear and tear issues with the Pratt & Whitney engines on Wizz's jets, which grounded 20pc of the fleet, were a further factor, being more acute in the 'hot and harsh' environment of Abu Dhabi and nearby destinations such as Saudi Arabia. He said: 'The engines were degrading three times faster, so it became incredibly punitive from an engine lifetime and cost perspective.' Mr Varadi said Wizz, which is due to provide an earnings update on Thursday, will delay orders from Airbus as it falls back on core European markets, where it competes with Ryanair and EasyJet. While based in Budapest Wizz is listed in London and has major bases at Gatwick and Luton.
Telegraph
2 hours ago
- Telegraph
JD Vance chooses Cotswolds for family summer holiday
JD Vance and his family have chosen to spend their summer holiday in the UK, according to sources familiar with their itinerary. They are expected to visit in August, not long after Donald Trump completes a five-day stay in Scotland, illustrating what a US official said were the deep bonds between Sir Keir Starmer's Government and the Trump administration. Mr Vance has at times angered the British public, making apparently dismissive comments about America's allies and fierce attacks on what he claims are restrictions on free speech in the UK. The vice-president, his wife Usha and their three young children are expected to join millions of American tourists in crossing the Atlantic to see the sights of London in mid-August. They are then expected to rent a cottage in the Cotswolds before leaving to spend time in Scotland. Mrs Vance has taken the lead in finding a cottage in the Cotswolds where they can unwind with Ewan, eight, five-year-old Vivek, and Mirabel, three. The children have been a feature of Mr Vance's public life since he became vice-president, skipping ahead of their parents and boarding Air Force Two in their pyjamas ready for long-haul flights to Europe and beyond. Three sources described the Vance family plans to The Telegraph, although one stressed that the itinerary had not been finalised. It is understood the vice-president had also been keen to visit David Lammy, the Foreign Secretary, at Chevening, his grace-and-favour estate in Kent, but their calendars did not align. Mr Lammy and his wife visited the Vances at their official Washington residence earlier this year, and people who know both men say they have bonded over their humble backgrounds and shared faith. The visits by the president and his potential successor in 2028 are seen as something of a summer coup by British officials, who are delighted at how they have been able to woo an administration that uses the slogan 'America First'. 'The ties run deep,' said a Whitehall source. 'Whatever any policy differences, the history, heritage and appeal of the United Kingdom are a huge draw to the current administration … unlike with their predecessors.' Mr Trump has spoken of his deep admiration for Elizabeth II and how he watched the late Queen's coronation at his royalist mother's side in 1953. The US president is due to fly to Scotland on Friday, where he will check up on his business interests and meet the Prime Minister in Aberdeen. He will visit his Trump Turnberry golf club in Ayrshire on the west coast before opening the new second course on his Menie Estate in Aberdeenshire, on the north-east coast. Aides, who shy away from using the term 'vacation' for a president who they say never stops working, are billing the trip as a low-key affair. He will return to the UK in September for a state visit. British officials have made no secret of their use of the UK's history and heritage in seeking concessions from the Trump administration. When Sir Keir met the president in the Oval Office in February, he came with a letter from the King inviting Mr Trump for an unprecedented second state visit. Barely seven weeks later, the UK became the first nation to do a trade deal with Washington, which lifted planned swingeing tariffs.
The Guardian
3 hours ago
- The Guardian
Trump's EPA eliminates research and development office and begins layoffs
The Environmental Protection Agency (EPA) said on Friday it is eliminating its research and development arm and reducing agency staff by thousands of employees. One union leader said the moves 'will devastate public health in our country'. The agency's office of research and development (ORD) has long provided the scientific underpinnings for the EPA's mission to protect the environment and human health. The EPA said in May it would shift its scientific expertise and research efforts to program offices that focus on major issues such as air and water. The agency said on Friday it is creating a new office of applied science and environmental solutions that will allow it to focus on research and science 'more than ever before'. Once fully implemented, the changes will save the EPA nearly $750m, officials said. Representative Zoe Lofgren of California, the top Democrat on the House science committee, called the elimination of the research office 'a travesty'. 'The Trump administration is firing hardworking scientists while employing political appointees whose job it is to lie incessantly to Congress and to the American people,' she said. 'The obliteration of ORD will have generational impacts on Americans' health and safety.' EPA administrator Lee Zeldin said in a statement that the changes announced Friday would ensure the agency 'is better equipped than ever to deliver on our core mission of protecting human health and the environment, while Powering the Great American Comeback'. The EPA also said it is beginning the process to eliminate thousands of jobs, following asupreme court ruling last week that cleared the way for Donald Trump's plans to downsize the federal workforce, despite warnings that critical government services will be lost and hundreds of thousands of federal employees will be out of their jobs. Total staffing at EPA will go down to 12,448, a reduction of more than 3,700 employees, or nearly 23%, from staffing levels in January when Trump took office, the agency said. 'This reduction in force will ensure we can better fulfill that mission while being responsible stewards of your hard-earned tax dollars,' Zeldin said, using a government term for mass firings. The office of research and development 'is the heart and brain of the EPA', said Justin Chen, president of American Federation of Government Employees Council 238, which represents thousands of EPA employees. 'Without it, we don't have the means to assess impacts upon human health and the environment,' Chen said. 'Its destruction will devastate public health in our country.' Sign up to Down to Earth The planet's most important stories. Get all the week's environment news - the good, the bad and the essential after newsletter promotion The research office – EPA's main science arm – currently has 1,540 positions, excluding special government employees and public health officers, according to agency documents reviewed by Democratic staff on the House science panel earlier this year. As many as 1,155 chemists, biologists, toxicologists and other scientists could be laid off, the documents indicated. The research office has 10 facilities across the country, stretching from Florida and North Carolina to Oregon. An EPA spokeswoman said that all laboratory functions currently conducted by the research office will continue. In addition to the reduction in force, the agency also is offering the third round of deferred resignations for eligible employees, including research office staff, spokeswoman Molly Vaseliou said. The application period is open until 25 July. The EPA's announcement comes two weeks after the agency put on administrative leave 139 employees who signed a 'declaration of dissent' with agency policies under the Trump administration. The agency accused the employees of 'unlawfully undermining' Trump's agenda. In a letter made public on 30June, the employees wrote that the EPA is no longer living up to its mission to protect human health and the environment. The letter represented rare public criticism from agency employees who knew they could face retaliation for speaking out. Associated Press contributed to reporting
