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US threatens Mexican flights on freight, competitive problems

    By David Shepardson and Kylie Madry

    Washington/Mexico City (Reuters) -the Trump government said on Saturday that it will take action against Mexico after the Mexican government has forced flight slots and forced freight carriers to relocate the activities in Mexico city, with the American airlines.

    The American transport secretary Sean Duffy said in a statement that the Mexico flight requests could reject if the government would not tackle the American concern about decisions in 2022 and 2023.

    The Ministry of Transport also proposes to withdraw antitrust immunity from the joint venture of Delta Air Lines with Aeromexico to tackle competing problems.

    Mexico is the most popular international destination for American airlines.

    Delta said that if the DOT moves in approval, this “would cause considerable damage to consumers traveling between the US and Mexico, as well as American jobs, communities and transborder competition.”

    Aeromexico said it was a joint answer to the order, which is planning to hand over in the coming days.

    Mexico City Shake-Up

    The DOT claims that Mexico has violated a bilateral air agreement by cutting slots for passenger flights and forcing All-Cargo carriers to move operations.

    The then President Andres Manuel Lopez Obrador defended the decisions, with the argument that the main airport of the capital was too busy and that the new, further road Felipe Angeles International Airport (AIFA) can handle the extra traffic.

    Officials hurry to renovate the aging Benito Juarez International Airport (MEX) prior to the World Cup of next year, for which Mexico is a host country.

    “By limiting slots and obliging all-cargo operations to come from Mex, Mexico has broken its promise, disrupted the market and left American companies that held the bag millions in more costs,” said De Dot.

    The AIFA is already at full capacity for freight handling and must be expanded. For passenger flights it is far behind Mex, because transport to and from the city remains spotty.

    “The move not only disturbed critical air freight operations and was a dangerous precedent for how all-cargo carriers can be treated in the worldwide markets, it also created uncertainty about how potential security security could be treated,” said the Cargo Airline Association, which represents the most important American cargo carriers.

    The Ministry of Transport of Mexico did not immediately respond to a request for comments.

    The measures

    The DOT has issued orders that Mexican airlines require to submit schemes to the department for all their American activities by a Deadline of Late July, while the preceding American approval for large charter flights to or from the United States is needed.

    Airlines that are influenced by the measures, including Volaris and Viva Aerobus, did not immediately respond to requests for comments.

    If the US withdraws the approval of Antitrust for Delta and Aeromexico, they should put an end to their cooperation in the field of prices, capacity and income exchange. Delta could retain his share interest in Aeromexico and continue other aspects of his partnership.

    De Dot also said that it could take action against European countries due to restrictions at airports.

    (Reporting by David Shepardson in Washington and Kylie Madry in Mexico City; Edit by Diane Craft and Rod Nickel)