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Delta Air Lines is prepared for a lengthy battle over the US government’s planned suspension of its transborder partnership with Grupo Aeromexico SAB, which regulators have said should wind down by October. The proposed breakup of the relationship has set the two carriers at odds with the US Transportation Department, saying the plan punishes the partnership for Mexican government actions beyond their control. “It will be a long, drawn-out process,” Delta CEO Ed Bastian said. “We have a lot of parties engaged at this stage, and a lot of customers are engaged and very upset.” The agency cited the effect on American carriers of Mexico’s decision to prohibit cargo operations at Benito Juarez International Airport, the main airport serving Mexico City, due to traffic saturation levels. While the Mexican government has not offered plans to add operational capacity at Benito Juarez, President Andres Manuel Lopez Obrador has been trying to boost traffic at Felipe Angeles International Airport, a flagship project 50 km north of Mexico City. The DOT action follows US suspension last year of a joint venture between ultra-low-cost carriers Allegiant Travel Co. and Mexican airline Grupo Viva Aerobus SA over concerns Mexico wasn’t meeting requirements in a transport agreement between the two nations. Termination of the Delta-Aeromexico partnership, which the DOT has called to wind down by Oct. 26, could harm consumers by forcing cancellation or reduction of some routes and slowing economic growth in Mexico, Delta has said.<br/>

China’s biggest airline is poised to establish its first nonstop service to Mexico, signaling the country’s growing importance as a gateway to the Americas for the world’s second-largest economy. Guangzhou-based China Southern Airlines plans to start direct flights to Mexico City on April 17, a spokesperson for the state-owned airline said. The twice-weekly flights will depart from Shenzhen in southern China, a person familiar with the matter said, confirming earlier reports in local media. The more than 16-hour journey across the Pacific would be China’s longest flight — and at 14,147 km, one of the lengthiest regular routes on the planet. It’s going ahead despite challenges of distance and terrain that make the return impossible without a stopover — a sign of how big a magnet Mexico has become to Chinese businesses seeking to sidestep tensions between Beijing and Washington. Chinese suppliers to Tesla, are among companies that have set up factories in Mexico in recent years, with electric vehicle champion BYD Co. set to follow. The Asian country has meanwhile been shipping ever-greater amounts of goods to America’s southern neighbor, a trend that accelerated with the pandemic. China’s direct investment in Mexico reached $587m in 2022, the highest on record, according to Mexico’s Economic Secretary. The countries’ two-way trade has risen 38% over the past four years, based on Bank of Mexico statistics for the 12 months through November 2023, versus the corresponding 2019 period. The number of Chinese visitors to Mexico has also sharply rebounded in 2023 to 161,300 entries, just shy of pre-pandemic levels, Mexican government data show.<br/>