MCALLEN, Texas - Local stakeholders have joined Delta Air Lines and Aeroméxico in criticizing plans by the U.S. Department of Transportation (DOT) to terminate an Antitrust Immunity Grant (ATI).
The ATI has allowed the two airlines to forge a Joint Cooperation Agreement (JCA) that has resulted in more flights to Mexico.
DOT has tentatively decided to dismiss a pending application by Delta and Aeroméxico to renew their ATI. The termination of the ATI could happen as soon as October 26, 2024.
If it does, it is expected to lead to the cancellation or capacity reduction of 23 non-stop frequencies on 21 routes between the United States and Mexico. Thee 23 at-risk frequencies account for approximately 1.8 million round-trip transborder seats annually.
The new Aeroméxico nonstop flights from McAllen to Mexico City could be risk.
Among the local stakeholders voicing their concerns are McAllen City Commissioner J.J. Zamora, Hidalgo County Commissioner Eduardo “Eddie” Cantu, and Dante Galeazzi, president & CEO of the Texas International Produce Association. They have written letters to Transportation Secretary Pete Buttigieg. CIL Group founder and president Joaquin Spamer is also concerned. He penned an op-ed on the subject.
Among other things, DOT does not like a Mexican government decision to relocate all cargo flights out of MEX, Mexico City’s main airport, to México City Felipe Angeles, which is outside of Mexico’s capital. Delta and Aeroméxico have argued that punishing them for the Mexican government's actions is “rash, counterproductive, discriminatory, and unprecedented.”
Here are the letters of support from Rio Grande Valley stakeholders for Delta and Aeroméxico's position:
Kala Wright
Director of Public Engagement
U.S. Department of Transportation
1200 New Jersey Avenue SE
Washington, D.C. 20590
Dear Mrs. Kala Wright,
On behalf of the Board of Commissioners for the City of McAllen, Texas, we believe that fostering cross-border collaboration is crucial for Texas’ economic prosperity,
especially in my community of McAllen, Texas. We wanted to express our concerns about the U.S. Department of Transportation’s (DOT) tentative decision to terminate approval of the Joint Cooperation Agreement (JCA) between Delta Air Lines and Aeromexico.
Ending approval of the JCA would negatively impact commercial exchange between the US and Mexico, risking the livelihoods of countless individuals and the vibrancy of our communities.
The JCA, since its inception in 2016, has been instrumental in driving economic growth and opportunity on both sides of the border. It has facilitated job creation, enhanced service options for travelers, and contributed to the enrichment of experiences for millions of passengers traveling from Mexico to America or vice versa.
As proof that the JCA has worked in our community and making a local economic impact:
Most recently, Delta Airlines and Aeromexico announced new nonstop service from McAllen to Austin and McAllen to Mexico City, respectively, within a period of only three months.
Aeromexico commenced daily service to Mexico City on February 1, and Delta Connection will commence on April 22 with three daily non-stops to Austin.
Terminating the JCA would have significant consequences, putting up to two dozen crucial air routes between our nation's start again putting up to two dozen crucial air routes between our nations at risk of cancellation. This could result in substantial consumer losses, estimated at approximately $800,000,000 per year, and the loss of hundreds of jobs in Texas alone.
Furthermore, the termination of the JCA would have profound implications for the interconnectedness and collaboration between our communities. Mexico is our state's largest trading partner, with more than $285 million worth of commerce flying between Texas and Mexico annually. We cannot afford to overlook the detrimental impact that this decision would have on the businesses and residents in Texas who rely on robust and efficient trade between our two nations. The loss of connectivity and opportunities for collaboration would not only hinder economic growth, but also undermine the spirit of cooperation that is integral to our relationship with Mexico.
Therefore, we urge you to reconsider the decision to terminate the approval of the JCA and instead explore alternative avenues for resolution, such as negotiating further with the Mexican government or pursuing other regulatory measures to enforce the U.S.-Mexico air services agreement. We must prioritize the economic health and prosperity of our communities by preserving the vital links that facilitate cross-border commerce between the U.S. and Mexico.
Thank you for your attention to this urgent matter.
Sincerely,
Joaquin Zamora
Commissioner, District 2,
City of McAllen
The Honorable Pete Buttigieg, US Secretary of Transportation
U.S. Department of Transportation
1200 New Jersey Avenue SE
Washington, D.C. 20590
Dear Secretary Buttigieg,
As a leader in the Rio Grande Valley, I believe that fostering cross-border collaboration is crucial for Texas' economic prosperity, especially in the community I serve. I wanted to express my concerns about the U.S. Department of Transportation's (DOT) tentative decision to terminate approval of the Joint Cooperation Agreement (JCA) between Delta Air Lines and Aeromexico.
Ending approval of the JCA would negatively impact commercial exchange between the U.S. and Mexico, risking the livelihoods of countless individuals and the vibrancy of our communities.
The JCA, since its inception in 2016, has been instrumental in driving economic growth and opportunity on both sides of the border. It has facilitated job creation, enhanced service options for travelers and contributed to the enrichment of experiences for millions of passengers traveling from Mexico to America or vice versa. Terminating the JCA would have significant consequences, putting up to two dozen crucial air routes between our nations at risk of cancellation. This could result in substantial consumer losses, estimated at approximately $800,000,000 per year, and the loss of hundreds of jobs in Texas alone.
Furthermore, the termination of the JCA would have profound implications for the interconnectedness and collaboration between our communities. Mexico is our state's largest trading partner, with more than $285 billion worth of commerce flowing between Texas in Mexico annually. We cannot afford to overlook the detrimental impact that this decision would have on the businesses and residents in Texas who rely on robust and efficient trade between our two nations. The loss of connectivity and opportunities for collaboration would not only hinder economic growth but also undermine the spirit of cooperation that is integral to our relationship with Mexico.
Therefore, I urge you to reconsider the decision to terminate the approval of the JCA and instead explore alternative avenues for resolution, such as negotiating further with the Mexican Government or pursuing other regulatory measures to enforce the U.S.-Mexico air services agreement. We must prioritize the economic health and prosperity of our communities by preserving the vital links that facilitate cross-border commerce between the U.S. and Mexico.
Thank you for your attention to this urgent matter.
Sincerely,
Eduardo "Eddie" Cantu
Hidalgo County Commissioner, Precinct 2
The Honorable Secretary Pete Buttigieg
c/o U.S. Department of Transportation
1200 New Jersey Avenue SE
Washington, D.C. 20590
Re: Opposition to termination approval of JCA between Delta & Aeromexico
Dear Secretary Buttigieg,
On behalf of the Texas International Produce Association (TIPA), we want to express our concerns regarding the U.S. Department of Transportation’s (DOT) tentative decision to terminate approval of the Joint Cooperation Agreement (JCA) between Delta Air Lines and Aeromexico. Ending approval of the JCA would negatively impact commercial exchange between the U.S. and Mexico, risking the livelihoods of countless individuals and the vibrancy of our communities. This is not in line with the advancement of economic prosperity between our largest trade partners, Mexico.
TIPA is a nonprofit organization dedicated to educating, advocating, promoting, and representing the over $13 billion of fresh fruits and vegetables that are grown in Texas or consider Texas their first point of arrival for domestic distribution. TIPA was created in 1942 by a group of industry leaders who shared a vision to expand the region’s produce industry. Today, TIPA represents over 400-member companies throughout the fresh produce supply chain. Membership ranks include growers, shippers, grocery stores, foodservice distributors, importers, and allied industries. Many of TIPA’s members have partnerships or operations in Mexico and rely on the ability to move between the countries with ease in order to bring the more than $25B in economic activity and the nearly 170,000 jobs directly linked to the trade.
The JCA, since its inception in 2016, has been instrumental in driving economic growth and opportunity on both sides of the border. It has facilitated job creation, enhanced service options for travelers and contributed to the enrichment of experiences for millions of passengers traveling from Mexico to America or vice versa. Terminating the JCA would have significant consequences, putting up to two dozen crucial air routes between our nations at risk of cancellation. This could result in substantial consumer losses, estimated at approximately $800M per year, and the loss of hundreds of jobs in Texas alone.
Furthermore, the termination of the JCA would have profound implications for the interconnectedness and collaboration between our communities. Mexico is our state’s largest trading partner, with more than $285 billion worth of commerce flowing between Texas in Mexico annually. We cannot afford to overlook the detrimental impact that this decision would have on the businesses and residents in Texas who rely on robust and efficient trade between our two nations.
The loss of connectivity and opportunities for collaboration would not only hinder economic growth but also undermine the spirit of cooperation that is integral to our relationship with Mexico.
On behalf of TIPA, we urge the DOT to reconsider such a decision as to terminate the approval of the JCA and instead explore alternative avenues for resolution, such as negotiating further with the Mexican Government or pursuing other regulatory measures to enforce the U.S.-Mexico air services agreement. We must prioritize the economic health and prosperity of our communities by preserving the vital links that facilitate cross-border commerce between the U.S. and Mexico.
Thank you for your attention to this urgent matter.
Sincerely,
Dante Galeazzi
President & CEO
Texas International Produce Association
In a recent op-ed for the McAllen Monitor, Spamer wrote: “Texas’ economic partnership with Mexico is an integral component of our state’s long-term economic prosperity, and it’s imperative that we continue to foster cross-border collaboration. For border cities like McAllen, strengthening this bilateral relationship is a major determining factor in reaching our region’s full economic potential.”
Spamer added: “As a business leader involved deeply in international trade throughout the Texas-Mexico border region and beyond, I am concerned about the U.S. Department of Transportation’s tentative decision to terminate approval of the Joint Cooperation Agreement between Delta Air Lines and Aeromexico. Ending approval of the JCA is both a counterproductive and unprecedented decision by Transportation Secretary Pete Buttigieg and the Biden administration. It will drastically hurt commercial exchange between the United States and Mexico, risking the livelihoods of thousands of individuals and the vibrancy of the communities that are supported by cross-border commerce.”
Among the other entities to write to the DOT is support of the application by Delta and Aeroméxico to renew their ATI, were:
Michigan State Senator, 4th District, Darrin Camilleri
• New York Council Member, 7th District, Shaun Abreu
• New York Council Member, 18th District, Amanda Farías
• Mayor of Hapeville, Georgia, Alan Hallman
• San Diego County Board of Supervisors
• Georgia Department of Economic Development
• Salt Lake City Department of Airports
• Metropolitan Airports Commission
• The Port of Portland
• The Port of Seattle and Seattle-Tacoma International Airport
• Airbus Americas
• Ford Motor Company Global Travel Office
• General Motors
• Stellantis
• Takeda Pharmaceuticals
• AGC Automotive Americas
• ZF North America
• Eastman
• Gerdau Long Steel North America
• Daifuku Airport America
• The American Society of Mexico
• World Affairs Council of Austin
• MAHLE Shared Services Mexico
