‘Mexico has broken its promise’: US threatens to block flights over airline competition issues

The US government says Mexico has not complied with a 2016 bilateral air agreement since at least 2022. That year, Mexican authorities revoked some scheduled flight slots from US carriers, and in 2023, cargo airlines were forced to shift operations away from Benito Juarez International Airport in Mexico City.

The US Transportation Department said, “By restricting slots and mandating that all-cargo operations move out of MEX, Mexico has broken its promise.”

As per Reuters, Mexican authorities have not issued a comment yet

As a result, the US is ordering all Mexican airlines to submit their US flight schedules in advance and get approval before running any large charter flights between the two countries.

The department also proposed withdrawing antitrust immunity for Delta Air Lines’ partnership with Aeromexico. If approved, it would mean the two airlines must stop coordinating pricing, flight capacity, and sharing revenue  although Delta could still keep its investment in Aeromexico and continue flying between the countries.

The US accused Mexico of creating an unfair playing field. “Mexico’s actions harm airlines seeking to enter the market, existing competitors, consumers of air travel and goods traded by air, and other parts of the US economy,” the department said.

Duffy added, “The United States will take all necessary steps to ensure fair competition and protect American travellers and businesses.” Delta did not immediately comment on the situation, Reuters reported.