Background on the Dispute
The ongoing list of disagreements and trade disputes between Mexico and the United States has grown longer, with a new controversy emerging in the aviation industry. The United States has accused Mexico of unfair practices and anti-competitive behavior, potentially causing significant economic damage to Mexico’s aviation sector.
US Accusations and Sanctions
The US government has reserved the right to admit flights from Mexico, putting the Aeroméxico-Delta alliance at risk by canceling anti-monopoly immunity between them. Despite allowing Delta to maintain its stake in Aeroméxico, the US demands that Mexico reverse measures affecting US airlines.
The core of the emerging dispute, according to public reactions from the US government, lies in measures taken by the Mexican government, particularly those implemented by former President Andrés Manuel López Obrador.
- Impulse the International Felipe Ángeles Airport (AIFA) by transferring cargo business from the Mexico City International Airport (AICM).
- Reorder slots (takeoff and landing schedules) to alleviate AICM overcrowding.
- Failing to meet modernization promises that justify the restrictions imposed by the Mexican government.
The US announcement is direct and specific, accusing Mexico of “combating abuse” and “anti-competitive practices.” It claims that in response to Mexico’s unfair and restrictive practices affecting US airlines, the US will take actions in international air transportation matters under the “America First” policy.
US Secretary of Transportation’s Statement
Sean P. Duffy, the US Secretary of Transportation, stated in a press release that the Mexican government has undermined the bilateral aviation agreement with the US for years. As a result, the US aims to protect its workers, airlines, and sovereign rights under President Donald Trump’s vision of not tolerating unfair treatment towards US companies.
Duffy mentioned that the EU-Mexico Air Transport Agreement, signed in 2015, was designed to enable free and fair competition between airlines from both countries. However, since 2022, the Mexican government has imposed restrictions including:
- Reassigning slots at Benito Juárezz International Airport (MEX), preventing fair access for US airlines.
- Forcibly expelling US cargo airlines from AICM in 2023, giving them only 108 days’ notice to move to other airports.
- Lack of progress in promised modernization efforts that justified the restrictions.
Announced actions include:
- Mexican airlines operating regular flights to the US must submit route planning for review and approval.
- New pre-approval requirements for large charter flights (passenger or cargo) between the US and Mexico.
- Propose removing anti-monopoly immunity from the joint venture agreement between Delta Air Lines and Aeroméxico, meaning they can no longer coordinate fares, capacity, or revenue jointly.
Expert Analysis and Impact
According to aviation expert Carlos Torres, Delta will still hold shares in Aeroméxico. However, the question remains: why should Delta maintain shares in Aeroméxico if there can no longer be the current level of cooperation?
The sanction will undoubtedly have an economic impact on both airlines, as coordinated operations reduce costs across the board – airports, schedules, aircraft, etc. Mexico will need to engage in extensive lobbying with the DOT to resolve the issue and address operational problems at AICM, concludes the analyst.
The most evident outcome is that the ill-fated decision by the López Obrador administration to cancel the Texcoco airport continues to have serious consequences, along with substantial economic costs.
Additional News
AMIIF Leadership Change:
The Mexican Association of Pharmaceutical Research Industries (AMIIF), representing major transnational pharmaceutical companies, announced the replacement of its CEO, Larry Rubin. Karla Gabriela Baez will serve as interim director.
Rubin’s Recent Statements:
These changes come shortly after Rubin’s comments criticizing the Mexican government for not fully utilizing the benefits of the USMCA, implicitly supporting former US President Donald Trump.
