The EU claims damages from measures at the AICM and AIFA

The United States government has initiated a new dispute with Mexico, alleging that the Air Transport Agreement signed between the countries in 2015 has not been respected due to various actions taken over the past three years that have affected its airlines' operations at Mexico City International Airport (AICM), despite the fact that the parties involved were informed at the time.

Among the actions of the so-called America First strategy, it requested that Mexican airlines (Aeroméxico, Volaris, Viva, Estafeta, Aerus, TAR, and MAS Carga, among others) submit their current itineraries for combined and exclusive cargo services by July 29th at the latest, to review compliance with legal requirements.

The U.S. Department of Transportation (DOT) also issued an order requiring pre-approval of charter operations (passenger and cargo) in the United States 30 days after its entry into force. It also preliminarily reported that the antitrust immunity granted to the Aeroméxico-Delta alliance may be terminated on October 25.

The controversy initiated by the DOT arises at a time when the Mexican government is facing other demands and sanctions from its U.S. counterpart, such as greater effectiveness in the fight against fentanyl trafficking—which led to the imposition of tariffs on products that do not comply with the USMCA—, control of the screwworm pest, or alleged dumping practices by tomato exporters.

“Joe Biden and Pete Buttigieg deliberately allowed Mexico to violate our bilateral aviation agreement,” said U.S. Transportation Secretary Sean P. Duffy.

The arguments for the disagreement are not new: a temporary reduction in the maximum number of operations per hour at AICM, first from 61 to 52 (on August 25, 2022) and then from 52 to 43 (on August 31, 2023), which affected Delta, United Airlines and American Airlines, and the prohibition of exclusive cargo airlines (such as UPS, FedEx and Atlas Air) to operate in the aforementioned terminal and relocate them to Felipe Ángeles International Airport (AIFA), which was executed on September 1, 2023 and generated additional costs.

In both cases, it is generally stated that these actions contravene Article 11 of the Air Agreement, which establishes that each party shall provide fair and equal opportunities to the airlines of both parties to compete in the provision of regulated international air transportation.

Mexican response

In response, the Mexican government (through the Ministry of Infrastructure, Communications and Transportation, SICT) announced in a statement that it reaffirmed its commitment to safe, efficient, and competitive aviation, and that "as part of a comprehensive strategy to strengthen the airport system in the Valley of Mexico, measures have been implemented to improve the safety, efficiency, and competitiveness of the aviation sector."

Meetings are expected this week between the various authorities related to the air sector (SICT, the Navy, and the National Defense Secretariat) to discuss the issue and seek to explain to the U.S. government the progress of the measures adopted to improve the operation of the AICM, including:

Its comprehensive renovation is underway, improved management of slots (takeoff and landing times) has allowed for an increase from 43 to 44 operations per hour (more may be added during the rest of the year), and the restoration of deprived slots to US airlines operating commercial passenger flights, which is already known within the industry.

The saturation that forced

In August 2022, AICM management announced a temporary reduction from 61 to 52 operations per hour during peak hours (7:00 a.m. to 10:59 p.m.), starting on October 31st. This was intended to improve the quality of services to the general public, given the recent declaration of saturation in its two terminal buildings.

This measure, it was explained, would be carried out in accordance with the International Air Transport Association (IATA) and Airports Council International (ACI) guidelines for managing temporary airport capacity reductions, "which state that any reduction in schedules must be carried out in a fair, transparent, and non-discriminatory manner by the airport administration and the schedule coordinator of the Federal Civil Aviation Agency (AFAC)."

In its argument, the DOT believes that there is little transparency in the allocation of slots to airlines in Mexico.

The AICM also detailed that the reduction was announced at a session of the AICM Operations and Schedules Committee, attended by representatives of airlines, organizations, and agencies operating there, such as CANAERO, with which UPS, Southwest, United, JetBlue, and Delta are affiliated.

Regarding the departure of cargo operations from AICM, the Presidential Decree that established it, published on February 2, 2023, states:

Given the congestion conditions at the terminal buildings, it is in the public interest to create the conditions for the proper and efficient operation of the airport, with optimal service levels… in order to increase operational safety, service quality, and passenger well-being and satisfaction.

According to an official from the previous federal administration, Mexico argued at the time that its decision was based on point three of Article 11 of the bilateral agreement, which states: "No Party shall unilaterally limit the volume of traffic, the frequency or regularity of service, or the type or types of aircraft operated by the airlines of the other Party, except when required for customs, technical, operational, or environmental reasons, under uniform conditions consistent with Article 15 of the Agreement."

Therefore, it is considered that there is no breach.

Additionally, a positive point for Mexico is considered to be that, in June 2023, the then head of the SICT, Jorge Nuño Lara, spoke with the US Secretary of Transportation, Pete Buttigieg, during a visit to AIFA.

"During the tour, both officials discussed the progress of the respective AICM cargo transfer processes, as well as Mexico's reclassification of aviation safety regulations by the United States Federal Aviation Administration (FAA)," it was reported. Consequently, there was communication between the parties.

Also present was Marcelo Ebrard, then Secretary of Foreign Affairs, who now, as Secretary of Economy, is leading the various negotiations with the United States government.