U.S. Threatens Mexico Flights, Delta-Aeromexico JV Over Air Deal Breach

The U.S. Department of Transportation (DOT) has taken major steps to escalate a long-standing dispute with Mexico, accusing it of breaching the 2015 U.S.-Mexico open skies agreement. In response, the DOT is threatening to impose restrictions on Mexican airline operations to the U.S. and terminate the joint venture (JV) between Delta Air Lines and Aeromexico.

Transportation Secretary Sean Duffy condemned what he called Mexico’s “blatant disregard” for the bilateral agreement, citing anti-competitive actions tied to flight capacity reductions at Mexico City’s Benito Juárez International Airport (MEX). Between 2022 and 2023, the Mexican government decreased permitted aircraft movements per hour at MEX from 61 to 43, citing congestion concerns. This triggered widespread slot reductions for both passenger and cargo flights, affecting U.S. and Mexican carriers alike. Cargo airlines such as FedEx and UPS were ordered to shift operations to Felipe Ángeles International Airport (NLU), a facility seen as less efficient by industry operators.

The DOT argues that these changes were made unilaterally and without infrastructure changes at MEX to justify such restrictions. As a result, on July 19, the department issued three new orders. One mandates Mexican airlines to submit detailed flight schedules and operational data to verify compliance with U.S. law. A second requires prior DOT approval for all charter flights by Mexican carriers. The third updates a 2024 “show cause” order that now tentatively calls for ending the antitrust immunity granted to the Delta-Aeromexico JV.

Originally approved in 2016, the JV has operated on a metal-neutral basis, allowing both airlines to jointly schedule, market, and share revenues on U.S.-Mexico routes. Delta also owns a 20% stake in Aeromexico. According to CAPA data, the JV currently holds 21.8% of two-way seat capacity between the two countries, ahead of American Airlines at 19.8% and United at 15.2%.

The DOT argues that reduced competition at MEX, worsened by Mexico’s opaque and unreliable slot administration, undermines the market environment required for a JV with antitrust immunity to function in the public interest. The department emphasized that Delta and Aeromexico could continue cooperating via codeshares and frequent flyer partnerships, but only without antitrust protection.

Delta responded by warning that dissolving the JV would harm consumers traveling between the U.S. and Mexico. The DOT’s move signals a broader warning to other countries that violate U.S. air transport agreements, specifically referencing European states and potential unjustified restrictions under the guise of noise abatement.

As tensions rise, the outcome of this dispute could reshape air service between the U.S. and Mexico, affect airline alliances, and set a precedent for enforcing aviation agreements worldwide. Mexican carriers must now submit detailed filings by July 29 to avoid further restrictions, as the DOT intensifies efforts to safeguard fair access and market competition in international aviation.

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