By Kylie Madry
MEXICO CITY, Oct 20 (Reuters) - Mexico plans to strengthen its civil aviation regulator with more money, staff and fresh policy planning as it addresses deficiencies that were flagged by US authorities in an audit, which could jeopardize the country's top safety rating.
Mexico's top transportation official said on Monday that the Federal Civil Aviation Agency will get a significant budget increase, along with 100 new operational staffers, as the government seeks to bolster oversight
and avoid a potential downgrade by the US Federal Aviation Administration.
Industry workers had decried deep cuts in the agency's proposed budget for 2027, before the government said it would allocate additional resources to the sector.
The FAA recently identified nearly two dozen issues that Mexico must address, according to Mexican authorities. The agency is expected to review its progress again in December.
If Mexico fails to show it has corrected the problems, a downgrade from Category 1 could be implemented as early as February, according to a timetable outlined by Mexican officials.
A Category 2 downgrade would be a blow for Mexican airlines, particularly flagship carrier Aeromexico, as it would limit national airlines' ability to expand services to the US, their most important international market.
Transportation Minister Jesus Antonio Esteva said the government had carried out a "deep update" of aviation rules and oversight and would emerge with a stronger regulator.
He said Mexico planned to publish an updated national aviation policy in the coming weeks - its first comprehensive refresh in five years - and had launched a 15-year national air navigation plan aimed at guiding infrastructure, equipment and airspace needs.
Esteva also said the aviation regulator would have a larger budget, more personnel and better-trained staff by the end of the current presidential administration.
The minister made the announcement at a conference hosted by the Latin American and Caribbean Air Transport Association, following a meeting with FAA Administrator Bryan Bedford and US Ambassador to Mexico Ronald Johnson.
Mexico regained Category 1 status in 2023 after more than two years at Category 2, a downgrade that prevented Mexican carriers from launching new US routes, which allowed US rivals to gain market share.
(Reporting by Kylie Madry; Editing by Thomas Derpinghaus)
