Mexico’s two major airlines are moving towards independence under a state sell-off, but as Aeromexico and Mexicana emerge in private hands next year, they will be enmeshed in growing low-cost competition.
The carriers’ parent, Cintra, the federal government’s airline holding company, has invited bids and will tell potential buyers by 9 August whether they have qualified to acquire parts or all of the airlines.
Aeromexico and the larger Mexicana will be sold separately and only to groups that limit foreign ownership to 25% under Mexican law. Investors are allowed to submit bids for both.
Cintra plans to sell at least 51% of each carrier by early next year, offering Aeromexico together with regional carrier Aerolitoral while linking Mexicana with low-cost carrier Click Mexicana, which began flights last week.
Serving 16 leisure destinations including Cancun, Veracruz and Havana, Cuba, Click uses ex-American Airlines Fokker 100s. Parent Mexicana relies on Airbus single-aisle aircraft for most short- and medium-haul services. Aeromexico, the country’s first Boeing 777 operator, has begun replacing its Boeing MD-80s with the 737 family.
The carriers, with a combined 2004 market share of about 80% of Mexico’s 18 million passengers, moved into state hands after the Latin American financial crisis and bank collapse in the mid-1990s.
Cintra, created in 1997 to manage the airlines, will also sell off air-cargo unit Aeromexpress, flight-training unit Alas de America, ground-handling unit SEAT and engine-overhaul unit ITR, as well as its 49% stake in a joint venture with Texas-based technical solutions and distribution specialist Sabre.
The carriers will face competition next year when the most successful low-cost carrier in Latin America, Brazil’s GOL, launches a Mexican low-fares unit. And at least three other budget airlines – Interjet, Vuela, and Mexus – plan Mexico services in the next year.
David Field / Washington DC
Source: Flight International
