*

US mandates Mexican air carriers to file American flight

schedules

*

Secretary Duffy warns against exploiting US market

*

Transportation Department criticizes Mexico for reducing

airline

competition

(Adds Delta comment, threat against European flights in

paragraphs 4,9)

By David Shepardson

WASHINGTON, July 19 (Reuters) - The Trump administration

said on Saturday it is taking a series of actions against Mexico

over the Mexican government's decisions to rescind some flight

slots for U.S. carriers and force U.S. cargo carriers to

relocate operations in Mexico City.

U.S. Transportation Secretary Sean Duffy said in a statement

the department could disapprove flight requests from Mexico if

the government fails to address U.S. concerns over decisions

made in 2022 and 2023. The department is also proposing to

withdraw antitrust immunity from the Delta Air Lines ( DAL )

joint venture with Aeromexico to address competitive

issues in the market.

Mexico is the most popular international destination among

U.S. airline travelers.

Delta said if the U.S. Department of Transportation

withdraws approval it "would cause significant harm to consumers

traveling between the U.S. and Mexico, as well as U.S. jobs,

communities, and transborder competition."

The Transportation Department said Mexico has not been in

compliance with a bilateral air agreement since 2022 when it

abruptly rescinded slots and then forced U.S. all-cargo carriers

to relocate operations in 2023.

Mexico's Transport Ministry and major Mexican airlines,

including Aeromexico, could not be immediately reached for

comment.

Duffy said Mexico was expected to complete construction to

alleviate congestion  at Mexico City's Benito Juarez

International Airport (MEX), but that has yet to materialize

three years later.

"By restricting slots and mandating that all-cargo

operations move out of MEX, Mexico has broken its promise,

disrupted the market, and left American businesses holding the

bag for millions in increased costs," the department said.

The USDOT also said it could take action against European

countries over limitations at airports. "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

said.

The Transportation Department issued a pair of orders

requiring Mexican airlines to file schedules with the department

for all their U.S. operations by July 29 and requiring prior

U.S. approval before operating any large passenger or cargo

aircraft charter flights to or from the United States.

"Mexico has altered the playing field significantly for

airlines in ways that reduce competition and allow predominant

competitors to gain an unfair advantage in the U.S.-Mexico

market," the department said. "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."

If the U.S. rescinds antitrust approval for Delta and

Aeromexico, they would be required to discontinue cooperation on

common pricing, capacity management, and revenue sharing, but

Delta would also be able to retain its equity stake in

Aeromexico, maintain all of its existing flying in the

U.S.-Mexico market unimpeded and continue a partnership.