Mexico’s refusal to follow bilateral aviation agreement is anti-competitive, disadvantages U.S. carriers, and requires immediate corrective action
WASHINGTON, D.C. – U.S Transportation Secretary Sean P. Duffy today announced USDOT terminated approval of Delta and Aeromexico’s joint venture agreement and withdrew antitrust immunity. Since Secretary Duffy moved in July to protect consumers, Mexico has not taken meaningful action to remedy their noncompliance with the 2015 U.S.-Mexico Air Transport Agreement. Mexico’s non-compliance intervenes in the market to provide an unfair advantage to Delta and Aeromexico, who operated a price- and capacity-setting joint venture with conditional approval by USDOT.
“Empty promises mean nothing. After years of taking advantage of the U.S. and our carriers, we need to see definitive action by Mexico that levels the playing field and restores fairness,” said U.S. Transportation Secretary Sean P. Duffy. “Under President Trump’s leadership, we will continue to put America First and hold any country who thinks they can distort the rules accountable.”
Antitrust immunity for joint venture agreements is an extraordinary authority – not a right – that USDOT only supports when foreign countries abide by the basic principles of fairness, free markets, and competition.
The joint venture must wind down by January 1st, 2026. Delta/Aeromexico will be required to discontinue competitively sensitive activities such as common pricing, capacity management, and revenue sharing that require antitrust immunity. This begins to level the playing field for other airlines. Delta and Aeromexico will be able to continue their partnership through arms-length activities such as codesharing, marketing, and frequent flyer cooperation. Delta will also be able to retain its equity stake in Aeromexico and both carriers can maintain all of its existing flying in the U.S.-Mexico market unimpeded.
Reminder:
Mexico has not been in compliance with the bilateral agreement since 2022 when it abruptly rescinded slots and then forced U.S. all-cargo carriers to relocate operations.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 Benito Juarez International Airport (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.
President Trump and Secretary Duffy are taking note of multiple other countries that are disregarding the terms of our air transport agreements. For example, we are monitoring 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 Department is committed to enforcing our agreements to ensure that aviation markets are fair and pro-competitive.