Aeromexico has stated it is not considering acquiring or investing in the parent company of Mexicana, its grounded archrival.
Grupo Aeromexico in a 6 September statement said its shareholders are not considering in any way buying or investing in Nuevo Grupo Aeronautico (NGO) or any of its subsidiaries.
NGO, which is the parent company for Mexicana, Click and Link, ceased operations on 28 August, only one week after it was acquired by Mexican investment group Tenedora K. The government along with Mexicana's unions have since been trying to line up new investors to supplement or replace Tenedora K in funding a potential re-launch.
The Mexican government has indicated it would not object to Aeromexico acquiring or investing in Mexicana. But Aeromexico says that currently it has absolutely no interest in acquiring NGO.
The government several years ago decided to pursue separate privatisations for Aeromexico and Mexicana rather than sell the two as one big airline group. In 2007 Mexico's competition authority also rejected an attempt by Grupo Mexicana's owners to buy Grupo Aeromexico.
But in 2008 the government said it would no longer oppose an Aeromexico-Mexicana merger given the rapid growth of low-cost carriers in the country but was not promoting a merger. While Mexicana's previous owners, Grupo Posadas, continued to express interest as recently as last year in a merger, Aeromexico's owners, led by Banamex, repeatedly rejected the idea of a merger.
Now that Grupo Mexicana has at least temporarily exited the market, Aeromexico is more interested in filling the void by pursuing organic growth. Aeromexico in its statement says it will continue efforts to strengthen its position in the markets it currently serves.
Grupo Aeromexico, which includes regional unit Aeromexico Connect and charter unit Aeromexico Travel, has already launched a handful of new routes since Grupo Mexicana ceased operations and increased capacity on others. ATI also reported last week that Aeromexico is looking to expand its mainline fleet and is considering expanding Aeromexico Travel into the scheduled domestic market.
If Mexicana is able to secure new capital and re-launch, the carrier will likely be significantly smaller than it was prior to filing for bankruptcy in early August. Contingent on securing new investors, the government and Mexicana's unions are now aiming to re-launch the carrier in December, which is the start of the winter season in the Mexican market. September, October and November are typically three of the weakest months in Mexico for air travel demand.
According to local reports, a Mexican court today formally declared Mexicana insolvent. This could lead to new investors injecting fresh capital or lead to the carrier completely shutting down.
The judge overseeing Mexicana's bankruptcy also reportedly said Mexico's Transportation Department will appoint later this week a new administrator to work with the carrier's unions and creditors. This could indicate Tenedora K is no longer involved in trying to rescue the company as Tenedora K appointed an initial administrator after acquiring the company for a symbolic amount on 20 August.
Source: Air Transport Intelligence news
