US-Mexico air transport deal cleared for takeoff

The United States and Mexico have solidified an air transportation deal that could increase competition and expand the world’s second largest cross-border market.

{mosads}The Department of Transportation announced Monday that the two counties exchanged diplomatic notes, ensuring that an agreement to open up new flight routes between the two countries will enter into force next month. 

“This landmark agreement with one of our largest aviation partners will significantly expand future trade and travel between the United States and Mexico,” said Transportation Secretary Anthony Foxx. “The increase in competition will drive the airlines to offer more attractive services and should result in lower price.”

The deal modifies a 1960 agreement and would open up new routes between the U.S. and Mexico, as well as permit an unlimited number of flights. Cargo carriers will have expanded opportunities under the agreement, which starts Aug. 21.

It also helps clear a major hurdle for Delta Air Lines as it tries to close a deal to buy up to 49 percent of Aeroméxico.

Some critics fear the deal will put Mexican airlines and workers at a disadvantage. The U.S. accounts for 65 percent of flights in Mexico’s airspace, while Mexican carriers account for 22 percent.

But Foxx maintains that the new agreement will benefit both U.S. and Mexican airlines, travelers, businesses, airports and communities by allowing “increased market access for passenger and cargo airlines to fly between any city in Mexico and any city in the United States.”

“This agreement will allow carriers on both sides of the border to better meet increasing demand in our countries, helping to drive economic growth in sectors beyond aviation, including tourism and manufacturing,” Foxx said.