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US Retaliates Against Mexico Over Airline Shift

US Retaliates Against Mexico Over Airline Shift

US Retaliates Against Mexico Over Airline Shift \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ The Trump administration imposed flight restrictions on Mexico, citing unfair treatment of U.S. airlines. A partnership between Delta and Aeromexico may be dissolved over Mexico’s airport policies. The decision could impact tourism and trade between the U.S. and Mexico.

Quick Looks

  • Trump administration acts against Mexico over airport access.
  • Delta-Aeromexico alliance faces possible termination.
  • Mexico required to submit flight schedules to U.S. authorities.
  • Dispute tied to Mexico City airport shift mandate.
  • Impact may reduce tourism and economic benefits for both nations.
  • Restrictions won’t take effect until October.
  • Mexico’s government has not publicly responded.
  • Airlines argue penalties harm travelers, not policymakers.

Deep Look

In a sharp move reflecting the “America First” policy revival, the Trump administration imposed sweeping restrictions on Mexican airlines and took steps to dismantle a key cross-border airline alliance, escalating tensions in U.S.-Mexico aviation relations.

At the center of this growing dispute is a long-standing frustration over Mexico’s decision to curtail access to Benito Juarez International Airport in Mexico City. Under a policy enacted several years ago, the Mexican government began limiting capacity at the busy airport and encouraging airlines to reroute operations to the new Felipe Angeles International Airport—located more than 30 miles outside the city center. The Felipe Angeles facility, despite being modern, has struggled to attract international carriers due to its inconvenient location and lack of demand.

U.S. Strikes Back Over Airport Access

Transportation Secretary Sean Duffy condemned the Mexican policy shift, arguing it discriminates against foreign airlines and undermines fair competition. According to Duffy, these actions violate the terms of the U.S.-Mexico bilateral aviation agreement, which ensures reciprocal rights and open market access between the two nations.

Duffy specifically blamed the Biden administration for failing to act earlier. “Joe Biden and Pete Buttigieg deliberately allowed Mexico to break our bilateral aviation agreement. That ends today,” he declared, emphasizing that the new restrictions aim to restore fairness in international air travel and send a broader signal to trading partners.

As part of the new U.S. restrictions, all Mexican airlines—whether they operate passenger, cargo, or charter flights—must now obtain pre-approval from the U.S. Department of Transportation (DOT) before operating any routes into the U.S. These approvals will be withheld or adjusted at Duffy’s discretion until the U.S. is satisfied with Mexico’s treatment of American carriers.

Implications for Travelers and Trade

The Trump administration’s action could have significant consequences not only for airline operations but also for travelers, tourism, and broader trade flows between the U.S. and Mexico. More than 40 million passengers traveled between the two countries in the last year alone, making Mexico the top international destination for American flyers.

If implemented fully, the order could reduce flight frequency and increase fares, particularly on popular routes between major U.S. cities and Mexican destinations such as Cancun, Mexico City, Guadalajara, and Monterrey. That, in turn, could deter tourists, restrict business travel, and hurt small businesses dependent on cross-border mobility.

Economic fallout is a key concern. According to projections shared by the airlines, over 140,000 American tourists and nearly 90,000 Mexican tourists could cancel travel plans due to reduced service and higher costs. That drop-off could translate to hundreds of millions of dollars in lost spending and weakened economic ties on both sides of the border.

Delta and Aeromexico Fight for Survival of Partnership

At the heart of the political maneuvering lies a commercial casualty: the potential termination of the joint business agreement (JBA) between Delta Air Lines and Aeromexico, one of the few cross-border airline partnerships approved under antitrust immunity by the U.S. government. Established in 2016, the JBA allows the two airlines to operate as a single network on U.S.-Mexico routes, offering coordinated schedules, pricing, and frequent flyer benefits.

The DOT has now tentatively moved to withdraw its approval of this partnership, claiming that it no longer serves the public interest due to Mexico’s aviation practices. If finalized, the decision would disrupt nearly two dozen air routes and dismantle an alliance that the airlines argue generates over $800 million annually in shared economic benefit through tourism, employment, and competitive fares.

In response, Delta issued a stern rebuttal, stating: “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.”

Aeromexico’s media office also weighed in, confirming it is reviewing the order and plans to submit a joint response with Delta. Airline officials contend that they are being unfairly penalized for decisions made by the Mexican government, over which they have no control.

Looming Deadline and Uncertain Future

While the DOT’s order has yet to be finalized, the termination of the JBA is scheduled to take effect in October—unless the airlines can successfully challenge the decision or unless diplomatic negotiations reverse course.

Observers note that Mexico’s government, led by President Claudia Sheinbaum, has not commented publicly on the matter. Her administration has yet to issue a formal response, leaving U.S. officials and industry analysts speculating about how the conflict might evolve. Meanwhile, there are questions about how the new restrictions could affect the broader U.S.-Mexico trade relationship, especially in the context of ongoing negotiations over tariffs, supply chains, and regional economic cooperation.

Bigger Stakes for International Aviation Policy

This unfolding confrontation signals a reassertion of unilateral U.S. aviation policy, with potentially global implications. Duffy’s aggressive stance could embolden future enforcement actions in other regions where the U.S. believes its carriers are being disadvantaged. It may also deter foreign governments from adopting airport policies that indirectly affect American commercial interests.

Ultimately, this aviation rift is more than a dispute over airport slots—it’s a flashpoint in the struggle to balance national interest with global cooperation in an increasingly interconnected air travel economy. As the October deadline approaches, all eyes will be on Washington and Mexico City to see whether compromise or confrontation defines the next chapter of U.S.-Mexico aviation relations.

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