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EXPD: QUOTE OF THE WEEKVW: MASSIVE JOB CUTSFDXF: FIRST TRADING UPDATE EXPD: MORE BULLISH THAN BEARISHFWRD: HUNTING FOR VALUEFDX: CAPITAL STRUCTURE ADJUSTMENTPLD: DOWN SHE GOESPLD: REIT DEAL-MAKINGFDX: HOLDING UPVW: BIG DIVESTMENTAMZN: AI INVESTMENTMAERSK: ANOTHER UPGRADE GXO: CONTRACT RENEWALFDX: SELL-SIDE REACTION TO INTERIMS
EXPD: QUOTE OF THE WEEKVW: MASSIVE JOB CUTSFDXF: FIRST TRADING UPDATE EXPD: MORE BULLISH THAN BEARISHFWRD: HUNTING FOR VALUEFDX: CAPITAL STRUCTURE ADJUSTMENTPLD: DOWN SHE GOESPLD: REIT DEAL-MAKINGFDX: HOLDING UPVW: BIG DIVESTMENTAMZN: AI INVESTMENTMAERSK: ANOTHER UPGRADE GXO: CONTRACT RENEWALFDX: SELL-SIDE REACTION TO INTERIMS
Mexican carriers operating to the US are facing a flurry of paperwork and uncertainty after the US claimed its neighbour had violated the US-Mexico Air Transport Agreement (ATA).
Other countries – in particular EU states, could also find themselves in a similar situation, warned the US.
Mexican airlines can no longer operate widebody charter flights, passenger and cargo, into the US unless they have specific authority from the Department of Transport (DoT), filed at least one month before, putting paid to ad hoc charters.
In addition, all Mexican airlines must file with the DoT, before 29 July, plans for all their schedules into the US, including codeshares. The filing must include aircraft type, frequency and days of operations, specific airports served, and the times of arrival and departure.
Signed by US transport secretary Sean Duffy, the order notes that the DoT may “amend, modify, or revoke this order at any time and without hearing”.
In addition, the anti-trust immunity given to the joint-venture between Aeromexico and Delta may be withdrawn.
The US is claiming that Mexico’s 2022 move to reduce slots at the congested Benito Juarez International Airport (MEX) breached the ATA, as did the 2023 order to move all freighter operations to Felipe Angeles International Airport (NLU).
Three US carriers, American, Delta and United, along with three Mexican carriers, Aeromexico, Viva Aerobus and Volaris, lost slots when Mexican authorities cut operations at MEX from 61 to 52 an hour, stating that the airport needed further construction to eliminate congestion. Slots were later cut to just 43 per hour. The slot restrictions were meant to be temporary, but the US has stated that no construction appears to have begun.
“The basis for these significant operational reductions remains unclear as nothing physically has changed with respect to either the terminals or the runways at MEX,” noted the DoT.
Delays to airport upgrades were said to be related to the change in government in Mexico. However in May, Mexico began a $416m renovation project at the airport, to be finished before the World Cup next summer. The second phase will begin after the tournament ends.
It is too little too late for the US, and “Mexico has walked away from its commitments,” claimed the DoT.
“Mexico arbitrarily reduced capacity at the country’s primary gateway airport in Mexico City, MEX, confiscated slots from US carriers at MEX, and ordered all-cargo carriers to vacate MEX. In addition, Mexico lacks a transparent and non-discriminatory slot allocation regime that adheres to international standards and applies consistently across the country’s airports, including MEX.
“Mexico’s actions harm airlines seeking to enter the market, existing competitor airlines, consumers of air travel and products relying on time-sensitive air cargo shipments traded between the two countries, and other stakeholders in the American economy.”
Mexico might not be the only country facing US threats over air traffic agreements. The US has warned other countries it will be investigating agreements.
“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.”
Schiphol in particular has faced challenges from US carriers when it cut slot numbers, with legal threats from Kalitta Air.
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