U.S. retaliates against Mexico with new flight restrictions amid aviation dispute – NaturalNews.com

• The U.S. Department of Transportation (DOT) imposed new restrictions on Mexican airlines, citing Mexico’s failure to comply with the 2015 U.S.-Mexico Air Transport Agreement.
• Since 2022, Mexico has cut hourly flight movements at Mexico City’s Benito Juárez Airport and forced U.S. cargo carriers to relocate to a less favorable airport, moves the DOT said were unjustified and harmful to U.S. carriers.
• Effective July 19, Mexican carriers must submit detailed operational data, seek approval for charter flights and face potential legal consequences regarding their compliance with U.S. law.
• The DOT has tentatively moved to withdraw antitrust immunity for the Delta-Aeromexico joint venture, citing market distortions caused by Mexico’s handling of airport slot allocations.
• The DOT emphasized the significant role of the venture, which controls 21.8 percent of U.S.-Mexico seat capacity, but said current conditions make the alliance anti-competitive, though limited cooperation between the airlines may continue.

The U.S. Department of Transportation (DOT) has announced new restrictions on Mexican flight operations into the U.S., citing violations of a bilateral air transport agreement and retaliatory actions by the Mexican government.

In a statement issued Saturday, the DOT accused Mexico of failing to honor the 2015 U.S.-Mexico Air Transport Agreement, commonly known as the “open skies” accord.

According to the DOT, Mexican authorities have reduced hourly flight movements at Benito Juarez International Airport (MEX) since 2022—from 61 to 43 by the 2023 to 2024 winter season—due to congestion. These changes led to slot losses for U.S. carriers, including American Airlines, Delta and United, as well as Mexican airlines. In 2023, Mexico also ordered freighter operators like FedEx and UPS to move operations to Felipe Ángeles International Airport (NLU), located over 30 miles from central Mexico City. The DOT contends these moves were made “under the pretense of capacity constraints” despite no significant physical changes at MEX.

“Mexico has not been in compliance with the bilateral agreement since 2022 when it abruptly rescinded slots and then forced U.S. all-cargo carriers to relocate operations. Mexico claimed it was to allow for construction to alleviate congestion?at MEX that has yet to materialize three years later. By restricting slots and mandating that all-cargo operations move out of MEX, Mexico has broken its promise, disrupted the market and left American businesses holding the bag for millions in increased costs,” the DOT said.

In response, the DOT issued three new regulatory actions, which took effect on Saturday, July 19.

First, Mexican carriers are now required to submit detailed information about their U.S.-Mexico flight operations, including schedules, aircraft types and frequencies, by July 29. Second, all passenger and cargo charter flights from Mexico to the U.S. must receive prior approval from the DOT before operating. Lastly, the department updated a previously issued “show cause” order to formally initiate the process of withdrawing antitrust immunity for the Delta-Aeromexico joint venture. (Related: Western nations cancel flights to Lebanon amid rising Israeli threats.)

End of the Delta-Aeromexico alliance

The DOT also tentatively moved to terminate the antitrust immunity that underpins the transborder joint venture (JV) between Delta Air Lines and Aeromexico.

The Delta-Aeromexico alliance, established in 2017, has been operating under tentative extensions since its original approval expired in 2020. The JV allows the airlines to coordinate schedules, pricing and revenue on U.S.-Mexico routes. Delta also holds a 20 percent equity stake in Aeromexico.

According to aviation analytics firm CAPA, the JV currently accounts for 21.8 percent of two-way seat capacity between the two countries, more than American’s 19.8 percent and United’s 15.2 percent. In its filing, the DOT said the altered competitive conditions at MEX “materially changed” the impact of the JV, rendering continued antitrust immunity unjustified.

The DOT then said that “the unreliable and nontransparent slot administration practices that reduced capacity at MEX” have created “potential harmful impacts of antitrust immunity in this environment, with specific emphasis on the lack of entry or the possibility of entry in the Mexico City market.” But still, the DOT clarified it is not banning all cooperation between the two airlines.

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Watch this video clip from The Big Money Show discussing Trump’s tariff deadline for the EU and Mexico.

This video is from the NewsClips channel on Brighteon.com.

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Sources include:

TheEpochTimes.com

Transportation.gov

Aviationweek.com

Brighteon.com