David Knibb SEATTLE
Mexican airline unions are seeking to derail or at least delay the separation and sale of Cintra, the state holding company which owns Aeromexico and Mexicana, by insisting that the government first sets a comprehensive aviation policy.
The union, which represents employees at carriers Aeromexico and Mexicana, is concerned about the implications of what is effectively a re-privatisation of Mexico's two largest airlines. They want a policy that addresses the long-term viability of the airline industry and a contingency plan in case the airlines falter after their separation.
Union leaders have toned down their protests about the plan to split up and sell Cintra.It has become apparent that the government is committed to carrying out last year's decision by the federal competition commission despite their objections. They would gladly revisit it if they could find support, but in its absence, they are stressing instead the need for a comprehensive aviation policy.
The transport commission within Mexico's Chamber of Deputies also wants such a policy before any sale, but it is unclear how far the lawmakers want to go. They seem to mirror union concerns about foreign domination of Mexican aviation. The non-governmental air transport chamber, Canaero, plans to submit its own position paper on industry policy, which it says would deal with "non-political" technical issues.
Conversely, Aeromexico and Mexicana would like to accelerate the sale process. Pending Cintra's breakup, its shareholders have deferred decisions on fleet renewal and recapitalisation. This has effectively put a freeze on the airlines' own plans. However, Fernando Flores, Mexicana's general manager, is quick to add that there are no cuts in operating expenses, and that Mexicana will invest $10-15 million this year in systems, spare parts, and airport infrastructure.
Those government officials most directly involved in the proposed sale, including the secretary of transport and communications, are focused on questions about the terms of sale itself - whether to sell Cintra's airlines through public or private placement, what level of foreign ownership to allow, and what limits should apply to ownership by foreign airlines. There is no hint that they plan to reconsider the conclusion that Cintra should be split.
Cintra's sale could still be 6-8 months away, but plans for it are accelerating. Government officials have conferred on sales strategy, and Cintra has hired Merrill Lynch to conduct a market study and prepare it for a sale or tender process.
As part of Cintra's scaling down of the management of its subsidiary airlines, Jaime Corredor, Cintra's president, and Juan Diez-Canedo, general manager, have left the company.
Aeromexico and Mexicana will face at least one new competitor. Start-up Azteca Airlines planned to launch service in March. By year end it expects to operate some eight domestic routes plus two to the USA.
Source: Airline Business
