The Trump administration has decided to take strong action against Mexico’s airline regulations. As a result, it plans to revoke the antitrust immunity given to Delta Air Lines and Grupo Aeromexico’s partnership. Officials believe Mexico’s policies are hurting American airlines and cargo operators.
US Tightens Controls on Mexican Airlines
US Transportation Secretary Sean Duffy announced the new rules on Saturday. He ordered all Mexican airlines to submit their flight schedules to US regulators. Additionally, they must seek approval before operating any large passenger or cargo charter flights to or from the United States.
At the same time, the US Department of Transportation proposed ending the Delta-Aeromexico joint venture’s antitrust immunity. Officials explained that this partnership “no longer aligns with the public interest.”
Duffy warned clearly, “The department could disapprove flight requests from Mexico if the government fails to address US concerns over decisions made in 2022 and 2023. The department is also proposing to withdraw antitrust immunity from the Delta Air Lines joint venture with Aeromexico to address competitive issues in the market.”
Mexico Accused of Breaking Air Agreement
Mexico is the most popular international destination for American travelers. However, US officials say Mexico violated a bilateral air agreement in 2022. That year, Mexico suddenly canceled airport slots. In 2023, it forced US cargo airlines to relocate from Mexico City’s Benito Juarez International Airport.
Secretary Duffy noted that Mexico failed to build promised airport expansions. “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,” said the Transportation Department.
US Responds With New Restrictions
In response, the US government issued two orders. First, Mexican airlines must file their US flight schedules regularly. Second, they must get prior approval before running large passenger or cargo charter flights to or from the US.
Officials accused Mexico of favoring its dominant airlines. “Mexico has altered the playing field significantly for airlines in ways that reduce competition and allow predominant competitors to gain an unfair advantage in the U.S.-Mexico market,” the department explained.
This move aims to protect American airlines, businesses dependent on air cargo, and travelers from reduced competition and higher costs.
Impact on Delta and Aeromexico
If the US removes antitrust immunity, Delta and Aeromexico must stop working together on ticket pricing, capacity planning, and revenue sharing. However, Delta will still keep its equity stake in Aeromexico and its existing flight routes in the US-Mexico market. Both airlines can continue their partnership, but without the benefits of antitrust immunity.
The US government is pressuring Mexico to fix its aviation rules. Otherwise, it will end the Delta-Aeromexico joint venture’s special protections. This situation may impact airfares, cargo shipping, and airline competition across the US-Mexico market.