The reprivatisation of Mexico's major airlines - Aeromexico and Mexicana - seemed settled, but is back in play as opposition politicians reopen the debate.
Honouring a joint request from Mexico's Senate and House of Deputies, the Institute of Bank Savings Protection (IPAB), which controls most of the government's 55% stake in Cintra, has agreed to delay the holding company's break-up and sale of its airlines for up to six months. Such a sale had been slated for the near future.
Opposition lawmakers, backed by Cintra's vocal unions, still hope to keep the group intact, despite a decision by the federal competition commission last October that it has operated as a domestic monopoly to the detriment of Mexican consumers. Those opposing the break-up nonetheless contend that a strong, unified flag carrier is still needed to compete against foreign airlines.
Alfonso Pasquel, Aeromexico's president, told legislators at a hearing that "flag carriers are a thing of the past", and a further delay in Cintra's break-up would stall much-needed re-fleeting by the individual airlines.
The government of relatively new President Vincente Fox agreed to postpone the sale so it could develop a long-range policy for commercial aviation. In exchange, opposition leaders agreed not to advance a bill that proposes to declare aviation a matter of "strategic national interest", which would have the effect of keeping Cintra intact, retaining a government stake in the group and exempting aviation from the competition commission's oversight. Opposition and union leaders now hope to accomplish these goals through the legislative debate over aviation policy.
The IPAB has agreed to delay Cintra's sale for only six months or until legislators develop an aviation policy, whichever occurs first.
Source: Airline Business