The United States has introduced a series of measures to address what it calls Mexico’s “blatant disregard” for the 2015 U.S.-Mexico Air Transport Agreement.
These actions target Mexico’s anti-competitive practices, which have disrupted U.S. carriers and increased costs for American businesses.
The U.S. Department of Transportation (DOT) claims Mexico has failed to honor the agreement since 2022. This impacted both passenger and cargo operations at Benito Juarez International Airport (MEX) in Mexico City.
Background of the Dispute
In 2022, Mexico unexpectedly revoked slots from three U.S. airlines—American, Delta, and United—and three Mexican carriers—Aeromexico, Viva Aerobus, and Volaris—at MEX.
The Mexican government cited capacity constraints and the need for construction to reduce airport congestion as reasons for this move.
However, three years later, no significant construction has taken place, and the promised improvements remain unrealized.
The slot seizures disrupted schedules and operations for U.S. carriers, leading to millions in additional costs.
In 2023, Mexico escalated the issue by forcing all U.S. all-cargo carriers to relocate from MEX with just 108 business days’ notice.
This decision, also justified by alleged airport saturation, violated the terms of the bilateral agreement, which guarantees U.S. carriers operating rights at MEX.
Despite repeated requests from the DOT, Mexico has provided no clear timeline for restoring these rights or returning the confiscated slots.
U.S. Response: Three Key Actions
To address Mexico’s non-compliance, the U.S. has implemented three “America First” measures aimed at restoring fairness and competition in the aviation market:
Part 213 Order: Mexican airlines must now submit their U.S. operation schedules to the DOT for review. This ensures greater oversight and accountability for Mexican carriers operating in the U.S. market.
Part 212 Order: Mexican airlines must obtain prior DOT approval before operating large passenger or cargo charter flights to or from the United States. This measure aims to prevent further disruptions and ensure compliance with the bilateral agreement.
Supplemental Show Cause Order: The DOT has proposed withdrawing antitrust immunity (ATI) from the Delta/Aeromexico joint venture.
ATI allows airlines to coordinate pricing, capacity, and revenue sharing. By revoking this immunity, the DOT seeks to address competitive imbalances caused by Mexico’s actions.
If finalized, Delta and Aeromexico could continue their partnership through arms-length activities like codesharing, marketing, and frequent flyer programs.
Delta would also retain its equity stake in Aeromexico and maintain its existing U.S.-Mexico flight operations.
Impact of Mexico’s Actions
The DOT claims Mexico’s decisions have significantly altered the competitive landscape in the U.S.-Mexico aviation market.
It said the slot reductions and cargo operation bans at MEX have given certain airlines an unfair advantage while harming new entrants, existing competitors, and consumers.
The DOT has expressed concern that Mexico’s arbitrary actions threaten the long-term competitiveness of the market.
U.S. carriers, consumers, and businesses relying on time-sensitive air cargo shipments have faced increased costs and disruptions.
For example, the forced relocation of all-cargo carriers has strained supply chains, impacting the timely delivery of goods between the two countries.
Broader Implications and U.S. Stance
U.S. Transportation Secretary Sean P. Duffy emphasized the government’s commitment to enforcing fair aviation practices. “Joe Biden and Pete Buttigieg allowed Mexico to violate our bilateral agreement, but that ends now,” Duffy stated.
“These actions send a clear message: no country can exploit the U.S., our carriers, or our market. America First means standing up for fairness.”
The DOT is also monitoring other countries to ensure compliance with air transport agreements. For instance, it is also scrutinizing European states. It wants to confirm that they follow the Balanced Approach process for noise abatement at airports and avoid unjustified operational restrictions.
The department is prepared to take further action if Mexico or other nations fail to address violations.
What’s Next for Delta and Aeromexico?
If the DOT finalizes its decision to revoke the Delta/Aeromexico ATI, the airlines would need to adjust their partnership. They could no longer engage in coordinated pricing or revenue sharing but could maintain cooperation through less integrated activities.
This change aims to level the playing field in the U.S.-Mexico market while preserving Delta’s ability to operate its existing routes.
Conclusion
The U.S. actions signal a strong stance against Mexico’s violation of the 2015 Air Transport Agreement. By implementing oversight measures, the DOT aims to protect American carriers, consumers, and businesses.
Should Mexico fail to address these concerns, the DOT has reserved the right to disapprove future flight requests, further escalating its response.
