In response to alleged violations of a 2015 bilateral air transport agreement, the U.S. government has taken decisive steps against Mexico, a move strongly endorsed by U.S. cargo airlines. According to a report, the U.S. Department of Transportation (DOT) is reviewing Mexican carriers’ compliance with U.S. laws, banning Mexican charter flights, and considering withdrawing antitrust immunity for the Aeromexico-Delta Air Lines joint venture.

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The conflict arose after Mexico’s 2023 decision to relocate all-cargo carriers to Felipe Angeles International Airport, a secondary facility, from Mexico City International Airport (MEX), citing congestion issues. This relocation, which affected airlines globally, has led to increased operational costs and complexities for cargo operators. The DOT’s measures aim to address these challenges and ensure fair competition.

Lauren Beyer, president of the Cargo Airline Association, emphasized the importance of the U.S. actions, stating that they send a “clear and necessary message” against anti-competitive behavior that harms American businesses. The association, representing major carriers like ABX Air, Atlas Air, FedEx, and UPS, highlighted the disruption and market turmoil caused by Mexico’s actions, which have cost American companies millions of dollars.

Mexican President Claudia Sheinbaum has expressed her government’s lack of formal notification regarding potential U.S. measures and sees no justification for such sanctions. Meanwhile, the DOT has initiated a three-pronged approach to pressure Mexico into policy changes, including requiring Mexican airlines to file detailed schedules of their U.S. operations.

In addition to these steps, the DOT has proposed withdrawing antitrust immunity for the Delta and Aeromexico joint venture, which could significantly impact their cooperation on pricing and capacity management. This proposal follows the U.S. government’s concerns over similar unilateral actions by European countries, such as the Netherlands’ decision to reduce slots at Amsterdam Schiphol Airport, which could affect U.S. flight levels.

The Cargo Airline Association has warned that such actions, if left unchallenged, could set a dangerous precedent and erode the principles of the U.S. Open Skies framework. The association remains committed to supporting the U.S. government’s efforts to uphold international agreements and maintain competitive freedoms essential for global trade.

Source: IndexBox Market Intelligence Platform