Background on Aeroméxico and Relevance
Aeroméxico, Mexico’s leading airline, has been a significant player in the aviation industry since its establishment in 1934. With a rich history and extensive network, Aeroméxico connects Mexico to various international destinations. The airline is part of the Global Alliance, joining forces with American Airlines and British Airways. Aeroméxico’s relevance stems from its crucial role in Mexico’s aviation sector and its partnerships with major international carriers.
DOT Order and Aeroméxico’s Response
In October 2021, the U.S. Department of Transportation (DOT) issued an order aiming to prevent mixed cargo and passenger services at the Aeropuerto Internacional de la Ciudad de México (AICM). Aeroméxico has now requested the DOT to withdraw or rescind this order, arguing that there is no evidence of a competitive imbalance between mixed-service airlines and cargo-only carriers.
Aeroméxico’s Arguments
According to Aeroméxico’s comment, the Mexican Presidential Decree to move exclusive cargo operations away from AICM violates the air agreement between Mexico and the U.S., causing disadvantages for U.S. airlines. However, Aeroméxico claims that the DOT fails to provide evidence of this competitive imbalance, the resulting damages, or how the order addresses these issues.
Aeroméxico’s arguments are based on an analysis by economist Dennis McWeeny from Bates White. This analysis suggests that air cargo services, especially, are a distant substitute for mixed cargo and passenger operations rather than direct competition.
Legal Actions by Aeroméxico
In another legal move, Aeroméxico, along with Delta Air Lines, successfully obtained a stay from the U.S. Court of Appeals for the Eleventh Circuit against a DOT order issued on September 15, 2021. This order intended to end anti-monopoly immunity and revoke approval for a Joint Cooperation Agreement starting January 1, 2026.
Key Questions and Answers
- What is the DOT order that Aeroméxico is contesting? The DOT order aims to prevent mixed cargo and passenger services at the AICM, which Aeroméxico argues lacks evidence of creating a competitive imbalance.
- Why is Aeroméxico contesting the DOT order? Aeroméxico claims that the order is based on unfounded hopes to persuade the Mexican government to revoke a presidential decree. They argue that there is no evidence of competitive imbalance, damages caused by this imbalance, or how the order addresses these issues.
- What is the basis of Aeroméxico’s arguments? Aeroméxico’s arguments are grounded in an analysis by economist Dennis McWeeny, who suggests that air cargo services are a distant substitute for mixed cargo and passenger operations rather than direct competition.
- What legal actions has Aeroméxico taken against the DOT order? Alongside Delta Air Lines, Aeroméxico successfully obtained a stay from the U.S. Court of Appeals for the Eleventh Circuit against a DOT order intending to end anti-monopoly immunity and revoke approval for a Joint Cooperation Agreement starting January 1, 2026.
