The Trump administration has pushed through new flight restrictions from Mexico. This latest action has escalated an already bitter bilateral trade dispute aimed at restoring fairness and competition to the U.S. aviation industry. U.S. Department of Transportation based its decision on the scope of the restrictions imposed by the Mexican government. These limits apply to passenger and cargo flights to/from Mexico City. This shift demonstrates the administration’s dedication to an “America First” agenda that focuses on fair and equal treatment for American carriers.
Delta Air Lines and Aeromexico have been joint venture partners since 2016. They’re now on the offensive, suing the Transportation Department for failing to renew their strategic alliance. The contentious back-and-forth illustrates the intricate realities of international aviation agreements and the promise of the economic benefit to both nations.
Background of the Dispute
A few years back, the Mexican government restricted competition by limiting flight schedules. This was detrimental to passenger and cargo airlines flying into Mexico City. In retaliation, the Trump administration recently required all Mexican airlines to file their flight schedules with their government for approval. This requirement shall continue until U.S. officials are happy that Mexico is treating American airlines properly.
Sean Duffy, a spokesperson for the Trump administration, stated, “Joe Biden and Pete Buttigieg deliberately allowed Mexico to break our bilateral aviation agreement. 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The deeply integrated Delta and Aeromexico partnership is to be withdrawn next month. Both airlines are preparing to take this decision to court. Aeromexico’s press oficina was still checking the order de esta escritura. They are looking to release a joint response with Delta in the next few days.
Economic Implications
According to the airlines, ending their joint venture would result in catastrophic consequences. They claim it would imperil almost two dozen routes. This would put over $800 million of economic benefits at risk for both countries. The removal of direct flights may prevent more than 140,000 American tourists from traveling to Mexico. Almost 90,000 Mexican visitors could decide not to visit the United States as well.
“The U.S. Department of Transportation’s tentative proposal to terminate its approval of the strategic and pro-competitive partnership between Delta and Aeromexico would cause significant harm to consumers traveling between the U.S. and Mexico, as well as U.S. jobs, communities, and transborder competition,” Delta representatives stated.
After all, Mexico continues to be an incredibly important destination for American travelers, with more than 40 million flew there just last year. The possible consequences for tourism highlight how high the stakes are in this legal battle.
Next Steps
As this story continues to unfold, it is unclear if and how the Transportation Department will address comments and issues raised by Delta and Aeromexico. The airlines are sure to mount a vigorous opposition to the proposed ending of their joint venture. They will stress the broader fallout this harmful decision may have on transatlantic aviation commerce.
