US Threatens Mexican Airlines Over Competition Issues

The Trump administration announced on Saturday that it will take a series of actions against Mexico over the Mexican government’s decisions to cancel some slots for US airlines and force US cargo carriers to relocate their operations to Mexico City.

According to Reuters, US Transportation Secretary Sean Duffy said in a statement that the department may reject flight requests from Mexico if the government fails to address US concerns about the decisions made in 2022 and 2023.

The department is also proposing to strip Delta Air Lines’ joint venture with Aeromexico of its antitrust immunity to address competitive issues in the market.

Mexico is the most popular international destination for US airline passengers.

Delta said that if the US Department of Transportation withdraws its approval, it “would cause significant harm to consumers traveling between the United States and Mexico, as well as jobs, local communities, and cross-border competition in the United States.”

The Department of Transportation stated: Mexico has not complied with a bilateral air transport agreement since 2022, when it abruptly revoked the slots and then forced US cargo carriers to relocate their operations in 2023.