Guy Norris/ACAPULCO
Boeing is opening a sales office in Mexico in June as the first stage of a strategic expansion in Latin America, and a key move in the battle with Airbus to meet a predicted demand for more than 200 airliners in the country over the next 10 years.
"It is the beginning of a long-term plan, and we don't intend this to be simply a sales office to put products into Mexico," says Boeing vice president sales Latin America Dan da Silva. "It's a big maybe, but we could be talking about production of parts for aircraft and other developments.
"It is really the establishment of part of Boeing as a Mexican company in the eyes of the public and the government," he adds.
Boeing's move to bolster its Latin American presence comes in the wake of stronger regional sales by Airbus, and the Mexican Federal Competition Commission's October 2000 recommendation to dissolve Cintra - the government-established holding company which runs Mexico's airline industry.
Cintra controls Aeromexico, Mexicana and their regional affiliates, Aerocaribe and Aerolitoral, as well as cargo carrier Aeromexpress. Final pronouncements on the formal ending of Cintra, and with it the future of long-standing fleet re-equipment plans, are expected around mid-year.
Aeromexico and Mexicana between them are expected to seek upwards of 50 new aircraft ranging from A318/717 to A330/767 size as part of an overall demand estimated at more than 200 aircraft over the next decade.
Airbus predicts the Mexican fleet will grow from 194 in 2000 to 316 in 2010, of which 120 will be required to meet increased demand, and a further 107 will be replacements for older types. "The fleet in Mexico will grow by more than 5% per year to 2010, which will be the highest rate in the whole of Latin America," says Rafael Alonso, Airbus vice president commercial, Latin America.
Although Boeing operates the most aircraft, Alonso argues that Airbus has "sold 75% of the new aircraft in the area over the last 10 years".
Overall, Airbus expects the Latin American fleet, estimated at 785 commercial aircraft in 2000, to grow to 1,231 in 2010. Of this, almost 900 aircraft will be new, with the fleet split roughly evenly between replacement and "expansion" airliners. Boeing's projections show a market for 1,470 aircraft over the next 20 years, worth around $79 billion.
Aeromexico and Mexicana meanwhile appear to be splitting along partisan lines as the influence of Cintra wanes. Aeromexico is looking to Delta Air Lines to buy a large share in the operation through its SkyTeam alliance, and leans towards Boeing as its first choice for equipment.
Delta and Lufthansa have emerged as the latest potential bidders for Mexicana, while United, which was expected to lead the bidding for its Star Alliance partner, is believed to be "too distracted" by its US Airways acquisition.
The interest from Lufthansa and United is expected to reinforce Mexicana's preference for Airbus products, for its re-equipment needs, at least in the A320 family category.
Source: Flight International
