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Home » Mexico is back with a bad business plan – Cranky Flier
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Mexico is back with a bad business plan – Cranky Flier

adminBy adminAugust 17, 2023No Comments4 Mins Read0 Views
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I never thought I'd actually say these words, but… Mexicana is back. The airline is scheduled to begin operations this fall, and a few people may actually take advantage of it. But don't get me wrong. Mexicana is not actually an airline. This is an employment program/airport promoter that happens to fly planes.

The original Mexicana would have turned 102 years old this year. The airline was a full-service airline primarily serving the domestic and U.S. markets from its hub in Mexico City. The airline went bankrupt in his 2010 year, and since then there have been 384,958 attempts to revive the airline (minus a few thousand more). One of the problems in restarting was related to strong unions and back pay.

What was a problem for many trying to revive the airline was actually an asset to the Mexican government. Mexican President Andrés Manuel López Obrador (AMLO) has received significant support from labor unions, and he is paying them back with the gift of putting Mexico back in the sky.

government Paid 815 million pesos (approximately $47 million) to the airline Mexicana, a significant portion of which will be paid directly to workers who owe unpaid wages from more than 10 years ago. What did this new airline get in exchange for all that? Three buildings and a flight simulator. This doesn't seem like the best way to start a true low-cost airline.

The government then announced an additional 4 billion pesos (about $235 million) to get the airline back on track. This includes acquiring 10 Boeing 737-800 aircraft and operating them at 18-20% lower fares than other airlines by the end of the year. right.

Remember, Mexico has a strong and growing low-cost sector. In fact, it is the only powerful part of Mexico's aviation system. According to Cirium's fleet data, Volaris currently flies more than 100 aircraft, and he has another 100 on order. At Viva Aerobus, he has more than 50 planes in service and 30 more on order. This is where the growth comes from, and much of it comes from getting passengers off the bus at a lower cost.

So why do we need a new Mexicana? As I said, it's an employment program, but it's also a promoter of the airport. I've written many times here about how AMLO chose a regional system to eliminate the brand new Mexico City airport that was under construction and instead move growth to Felipe Angeles International Airport (AIFA).

Airlines don't want to fly to AIFA. AMLO is forcing cargo to move there, and local airlines have added flights there because they don't want to go through AMLO any more than they already do. In August, more than 30 flights per day will be operated from the airport. Mexico City's main airport has more than 450 flights each day, but this is low because it is full.

The new Mexicana will therefore be integrated into AIFA and use it as its main base. The company plans to open a base in conjunction with the opening of the new Tulum Airport. After that, Mexicana will operate domestic flights to various parts of the country. The airline said its initial network will include flights from AIFA to Acapulco, Campeche, Cancun, Chetumal, Ciudad Juarez, Cozumel, Guadalajara, Hermosillo, Huatulco, Ixtapa-Zihuatanejo, La Paz, Leon, Los Cabos, Mazatlan, Merida and Monterrey. , Oaxaca, Puerto Vallarta, Tijuana, and Villahermosa. The next round will include more airports. Basically, you'll see this flying billboard for AMLO's new toy in every city in the country that has an airstrip.

Many of these markets are served preferentially by Mexico City Airport, and some already have services from AIFA. So what is it worth? Well, a new Mexicana will be cheaper! This isn't just out of kindness, and I'm sure it's not due to cost-cutting. No, because this can't be helped. Demand from AIFA will be lower than demand from Mexico City, and AMLO wants a low-cost airline. But this will actually be a low-fare airline, not a low-cost airline.

After all, it will be a novelty to see Mexicana fly again — at least for everyone except Breeze, who will now face further confusion over the MX code — but this happens There is no commercial reason at all. It has never stopped AMLO from operating in the past, and there is no reason to change that now.





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