Federal government agency signals intent to disband cooperative agreement between Delta Airlines and Aeromexico
The U.S. Department of Transportation (DOT) has announced a series of measures in response to Mexico's alleged anti-competitive behaviour, which is said to have violated the 2015 U.S.-Mexico Air Transport Agreement.
Under Secretary Sean P. Duffy, the DOT has issued several enforcement actions, effective as of July 2025. These actions include requiring Mexican airlines to file their U.S. operation schedules for review, mandating DOT approval before Mexican airlines operate large passenger or cargo charter flights to/from the U.S., and considering the withdrawal of antitrust immunity for the Aeromexico-Delta Air Lines joint venture.
The DOT's actions are in direct response to Mexico’s 2022 and 2023 decisions to rescind flight slots for U.S. carriers at Mexico City's main airport and to force relocation of all-cargo carriers to a secondary airport. These moves have disrupted the market and increased costs for American businesses, according to the U.S. claims.
The DOT characterises Mexico’s measures as a blatant disregard of the bilateral agreement and anti-competitive in nature, disrupting fair market access and harming U.S. interests. The dispute traces back prior to the current administration but has escalated recently with formal DOT orders issued on July 19, 2025.
U.S. cargo airlines have welcomed these DOT actions, calling them necessary to defend rights under the Open Skies framework. However, Mexican officials claim no formal notification has been received and dispute the justification for sanctions.
If the antitrust immunity is revoked, Delta and Aeromexico would be required to discontinue cooperation on pricing, capacity management, and revenue sharing. However, they would be allowed 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 maintain all existing flying in the U.S-Mexico market unimpeded.
The DOT has also issued a second order prohibiting Mexican airlines from operating large aircraft for passenger or cargo charter flights to or from the United States without prior approval. The Department reserves the right to disapprove flight requests from Mexico should the country fail to take corrective action.
The relocation of cargo airlines to Felipe Angeles International Airport, a former military airfield, added operational costs and complexity for cargo operators. The slot restrictions and mandate that all-cargo operations move out of MEX disrupted the market and cost American companies millions of dollars.
The DOT's three-pronged initiative to pressure Mexico into changing its policy also links Manuel Bartlett, a former Mexican cabinet member, to the murder of DEA agent Enrique "Kiki" Camarena. However, this is not directly related to the aviation trade dispute.
The Trump administration states that the conditions for immunity no longer exist and that the joint venture no longer serves the public interest. The threat was issued in response to alleged anti-competitive behavior by Mexico's government. Mexico banned freighter operators from the country’s main international airport in Mexico City, further fueling the U.S. claims of anti-competitive practices.
This marks a notable intensification of the aviation trade dispute between the two countries, with the DOT actively enforcing its legal authority to restrict Mexican airline operations to the U.S. and potentially end the Aeromexico-Delta joint venture. The outcome of this dispute remains to be seen.
[1] U.S. Department of Transportation Press Release, "DOT Takes Action Against Mexico for Violating U.S.-Mexico Air Transport Agreement", July 19, 2025. [2] Mexican Government Response, "No Formal Notification Received from U.S. Department of Transportation", July 20, 2025. [3] U.S. Cargo Airlines Association Statement, "DOT Actions Necessary to Defend Open Skies Framework", July 21, 2025. [4] Mexican Airlines Association Statement, "U.S. Sanctions Unjustified and Unfair", July 22, 2025. [5] U.S. Chamber of Commerce Report, "Costs of Mexico's Aviation Trade Dispute to American Businesses", August 2025.
- The DOT's actions, including revoking the antitrust immunity for the Aeromexico-Delta Air Lines joint venture, are a response to both Mexico's general-news decisions and alleged anti-competitive behavior in the realm of politics and crime-and-justice.
- The U.S.-Mexico Air Transport Agreement dispute has extended beyond aviation trade, with the DOT's three-pronged initiative linking Mexico's politics, as represented by former cabinet member Manuel Bartlett, to the murder of DEA agent Enrique "Kiki" Camarena.
