The Mexican Federal Competition Commission (CFC) has ruled that the Cintra holding company should end its monopolistic control of the country's airline industry and sell off its two main subsidiary carriers Aeromexico and Mexicana.
State-controlled Cintra claims the CFC's decision represents an "opinion" and is not final, and says it will decide on a course of action after further analysis - although it does not anticipate rejecting the call to separate the two carriers and divest its interests in them.
Cintra says the pair will be open to international investment up to a ceiling of 25%. United Airlines is expected to lead the bidding to take a stake in Star partner Mexicana, and Delta Air Lines to invest in SkyTeam ally Aeromexico. Mex-icana in turn controls regional affiliate Aerocaribe, while Aeromexico is tied to Aerolitoral. Cintra also owns cargo carrier Aeromexpress.
The timing of the sell-off remains unclear given that the Mexican Government is in a state of transition and the new president will not be inaugurated until 1 December. The airline's labour unions have also voiced opposition to the airlines being split and sold.
The long awaited decision to break Cintra's grip on the industry should clear the way for badly needed investment in the two airlines. The most pressing requirement is to replace Mexicana and Aeromexico's ageing narrowbody fleet of aircraft, and also invest in new regional jets.
Source: Flight International
