US Orders Delta to End Aeromexico Partnership

US Transportation Secretary Sean Duffy is following through on his threat to force Delta and Aeromexico to dissolve their longtime partnership because of his concerns that Mexico isn't being fair to US airlines. Duffy announced Tuesday that the Transportation Department is revoking the antitrust immunity the airlines have had since 2016 that allowed them to price and schedule their flights jointly and share revenue, the AP reports. He said it doesn't make sense to maintain that arrangement as long as Mexico is giving its domestic airlines an unfair advantage through limits it placed on passenger and cargo flights into Mexico City several years ago.

This airline dispute is another front in the broader trade dispute that has the two countries at odds over President Trump's tariffs and his concerns about border security. Duffy is focused on whether Mexico's actions to force airlines to move out of the main Benito Juarez International Airport to the newer Felipe Angeles International Airport more than 30 miles away violated a trade agreement between the two countries and gave domestic airlines the advantage.

• Before Mexico forced cargo airlines to start using Felipe Angeles in 2022, all major international airlines had shunned the airport that is so far from the center of Mexico City that it can take 2.5 hours to drive to the terminal.
• "Empty promises mean nothing. After years of taking advantage of the US and our carriers, we need to see definitive action by Mexico that levels the playing field," Duffy said.

• When Duffy announced this threat in July, Mexican President Claudia Sheinbaum said that the transfer of cargo operations from Mexico City's main airport was a technical decision and that any new change should be based on technical criteria and prioritizing safety.
• "There is no reason to impose any sanctions related to this matter," she said. She says Mexico's decision was not a decision against any US airlines, but due to the need to relieve congestion at the capital's old airport. She acknowledged that some US companies complained when the change happened, but she said that they adapted.
• The two airlines said they are disappointed in Duffy's decision, but haven't yet decided whether to challenge it. Delta and Aeromexico have argued in regulatory filings that they shouldn't be punished for the actions of the Mexican government and consumers of both countries will be hurt by this.
• The two airlines said in regulatory filings that they believe the loss of direct flights would prompt over 140,000 American tourists and nearly 90,000 Mexican tourists not to visit the other country and hurt the economies of both countries with the loss of their spending.