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Reuters
19-07-2025
- Business
- Reuters
US threatens Mexican flights over cargo, competition issues
WASHINGTON/MEXICO CITY, July 19 (Reuters) - The Trump administration said on Saturday it will take action against Mexico after the Mexican government cut flight slots and forced cargo carriers to relocate operations in Mexico City, affecting U.S. airlines. 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 ( 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.
Yahoo
19-07-2025
- Business
- Yahoo
US threatens Mexican airline flights over airline competition issues
By David Shepardson WASHINGTON (Reuters) -The Trump administration said Saturday it is taking a series of actions against Mexico over the Mexican government's decisions to rescind some flight slots for U.S. carriers and force U.S. cargo carriers to relocate operations in Mexico City. 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 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 U.S. airline travelers. Delta was not immediately available for comment. 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 U.S. all-cargo carriers to relocate operations in 2023. Reuters has sought comment from Mexico's transport ministry on the orders. 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 U.S. operations and requiring prior U.S. 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 U.S.-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 U.S. 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 U.S.-Mexico market unimpeded and continue a partnership. Solve the daily Crossword
Reuters
19-07-2025
- Business
- Reuters
US threatens Mexican airline flights over airline competition issues
WASHINGTON, July 19 (Reuters) - The Trump administration said Saturday it is taking a series of actions against Mexico over the Mexican government's decision in 2023 to rescind some flight slots for U.S. carriers and forced U.S. cargo carriers to relocate operations in Mexico City. U.S. Transportation Secretary Sean Duffy said in a statement the department could disapprove flight requests from Mexico if the goverment fails to address U.S. concerns. The department is also proposing to withdraw antitrust immunity from the Delta Air Lines (DAL.N), opens new tab joint venture with Aeromexico to address competitive issues in the market.
