U.S. Imposes Measures on Mexican Airlines Due to Cargo and Competitive Issues
In the "Air Cargo" section, we report on the escalating enforcement actions taken by the U.S. Department of Transportation (DOT) against Mexico, due to alleged violations of a 2015 bilateral air transport agreement.
The DOT's measures include requiring Mexican airlines to submit flight schedules for advance review, threatening to suspend approval of new routes or charters, banning Mexican charter flights, and reviewing the antitrust immunity of the Aeroméxico-Delta joint venture. These actions follow Mexico's 2023 forced relocation of all-cargo operations from Mexico City International Airport (MEX) to Felipe Ángeles International Airport (AIFA) and other unilateral changes to slot allocations without adequate consultation.
Mexico, represented by President Claudia Sheinbaum, defends the airport relocation as necessary to ease congestion and modernize infrastructure. However, U.S. officials, led by Transportation Secretary Sean P. Duffy, accuse Mexico of "blatant disregard" and anti-competitive behavior that breaks the liberalized terms of the 2015 agreement, intended to allow unrestricted air service and market access between the two countries. As of late July, no flights have been suspended yet, and Mexico has not received a formal trade complaint.
Lauren Beyer, president of the Cargo Airline Association, which represents major carriers like ABX Air, Atlas Air, FedEx, and UPS, stated that the U.S. actions send a "clear and necessary message" against anti-competitive behavior that harms American businesses.
The DOT is also considering awarding Cuba licences to forwarders, a move that U.S. forwarders have urged, citing the disruption and market turmoil caused by Mexico's actions, which have cost American companies millions of dollars. The nature of the "TRIPLE PLAYERS" mentioned in the title remains unclear.
The U.S.-Mexico Air Transport Agreement has been confirmed to enter into force. The DOT is currently reviewing Mexican carriers' compliance with U.S. laws, and the status of the review is not disclosed. The DOT is also considering withdrawing antitrust immunity for the Aeromexico-Delta Air Lines joint venture, which could significantly impact their cooperation on pricing and capacity management.
The IndexBox Market Intelligence Platform served as a source for this information. However, the article does not provide any new information about the conflict between the U.S. and Mexico regarding the air transport agreement.
- The escalating measures taken by the U.S. Department of Transportation (DOT) against Mexico, due to alleged violations of the 2015 bilateral air transport agreement, reflect the DOT's concern about general-news topics such as global trade, industry, finance, and business.
- The DOT's actions could potentially impact not only the air cargo industry but also the broader business sector, as noted by Lauren Beyer, president of the Cargo Airline Association, who emphasized the harmful effects of anti-competitive behavior on American businesses.
- The U.S.-Mexico Air Transport Agreement, which allows for unrestricted air service and market access between the two countries, has been at the center of both bilateral air transport industry discussions and political deliberations, raising questions about the role of politics in this particular business relationship.
