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Aeromexico works to strengthen its global network as Mexico's economy start a slow path to recovery

Analysis

Grupo Aeromexico is embarking on 2015 with several initiatives under way to strengthen its network to ensure it maintains its stature as Mexico's leading airline. The company is rebanking its strategic hub at Mexico City while resuming limited operations at nearby Toluca to alleviate some operating constraints at Mexico City Juarez.

Aeromexico is also in the midst of building up its hub at Monterrey and touting a new shuttle product from Mexico City to the country's busiest business markets. At the same time, the airline is expanding its international footprint with new destinations in Latin America as well as new North American markets.

The network optimisation occurs as Mexico's economic performance measured by GDP growth looks to improve year-on-year in 2015. Some of the challenges Aeromexico faced in 2014 are lingering into 2015, including pricing traction in Mexico's domestic market. But Aeromexico seems to be taking the necessary steps to blunt the weakness that still may be present in Mexico's domestic aviation market through efforts to maximise the vast connectivity it can offer compared with its rivals.

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