New Orders Take Aim at “Ongoing Anti-Competitive Behavior” in Mexico

U.S. Transportation Secretary Sean P. Duffy kicked off the weekend with “a slate of America First actions to combat Mexico’s blatant disregard of the 2015 U.S.-Mexico Air Transport Agreement and its ongoing anti-competitive behavior.”

In a press release laying out their case, the DoT said that “Mexico has not been in compliance with the bilateral agreement since 2022, when it abruptly rescinded slots and then forced U.S. all-cargo carriers to relocate operations.” At the time, it was supposedly done to allow construction at Benito Juarez International Airport that would alleviate congestion-but nothing has been done 3 years on. American, Delta, and United lost slots at the airport, as well as 3 Mexican carriers (Aeromexico, Viva Aerobus, Volaris) doing scheduled passenger operations there. Despite “repeated outreach from the Department”, they say, nothing has been done, no construction has begun, and it doesn’t look like anything will ever materialize. Therefore, the DoT says, Mexico has “broken its promise, disrupted the market, and left American businesses holding the bag for millions in increased costs.”

“Joe Biden and Pete Buttigieg deliberately allowed Mexico to break our bilateral aviation agreement,” said Transportation Secretary Sean P. Duffy. “That ends today. Let these actions serve as a warning to any country who thinks it can take advantage of the U.S., our carriers, and our market. America First means fighting for the fundamental principle of fairness.”

The release includes a subtle shot across the bow for anyone thinking of something similar around the world, as the DoT mentions that “President Trump and Secretary Duffy are taking note of multiple other countries that are disregarding the terms of our air transport agreements.” One possible target: “European States to ensure that they apply the Balanced Approach process for noise abatement at their airports and do not implement unjustified operational restrictions.” The DoT affirms that it is “committed to enforcing our agreements to ensure that aviation markets are fair and pro-competitive.”

Specifically, the recent decision is comprised of 3 actions: An order requiring Mexican airlines to file schedules with the Department for all their U.S. operations, an Order requiring prior DOT approval before operating any large passenger or cargo aircraft charter flights to or from the United States, and a Supplemental Show Cause Order proposing the withdrawal of the Delta/Aeromexico joint venture’s antitrust immunity, “thereby taking corrective action to address competitive issues in the market.”

FMI: www.transportation.gov