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Arbitration not on the table in US-Mexico aviation spat, minister says (updated)

Adds quote from minister, context, details from Aeromexico

By Kylie Madry

MEXICO CITY, Nov 12 (Reuters) - Neither the U.S. nor Mexico are considering turning to arbitration to resolve an ongoing aviation spat which has stunted expansion plans from Mexican airlines, Mexican Transportation Minister Jesus Esteva said on Wednesday.

Speaking to journalists, Esteva said the issue had not yet been resolved, but that Mexican officials were set to travel to Washington in coming weeks to meet again with their U.S. counterparts.

"At this moment, (arbitration) is not on the table," Esteva said. "Neither government is looking at arbitration."

 In October, the U.S.
revoked approval
 for more than a dozen routes from Mexican carriers to the U.S. and canceled all combined passenger and cargo flights from Mexican airlines to the United States out of a controversial government-run airport outside capital Mexico City.

 The U.S. Department of Transportation claims that Mexico has not been in compliance with a
bilateral aviation agreement
 since 2022, when it cut slots at the Mexico City International Airport and moved cargo operations to the newer, farther-away Felipe Angeles International Airport.

 In September, the DOT also
ordered the end
 of a joint venture between Delta Air Lines DAL.N and Aeromexico AERO.MX, citing competition concerns.

 On Wednesday, Aeromexico CEO Andres Conesa
told analysts
 that he was hopeful the bilateral dispute would soon be over.

 While the U.S.' restrictions on the Mexico City International Airport do not affect Aeromexico's plans in the short and medium term, Conesa said, several of its routes out of Felipe Angeles were scrapped.

(Reporting by Kylie Madry; Editing by Brendan O'Boyle)

((Kylie.Madry@thomsonreuters.com;))

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