Mexicana Airlines was the largest international airline in Mexico and the longest standing airline in North America, before filing for bankruptcy in Aug-2010.
It filed for Chapter 11-style bankruptcy on 2-Aug-2010 and for Chapter 15 protection of assets in the US on 4-Aug-2010. The carrier has filed with Mexican authorities to undergo restructuring, with a Chapter 15 bankruptcy protection in the US, safeguarding its assets there.
On 28-Aug-2010, Mexicana and its subsidiaries MexicanaClick and Mexicana Link suspended all operations.
Efforts to resurrect the airline, as well as its associated Click and Link operations, are ongoing.
268 total articles
Mexicana bankruptcy judge rules in favour of creditor proposal to separate MRO unit from proceedings
29 total articles
Mexican low-cost carrier Volaris is tweaking its US operations after making an aggressive push into transborder markets in 2011 in the aftermath of Mexicana's collapse. The airline is cutting flights from Guadalajara to San Diego, a route it launched a little over a year ago in May-2011, and is suspending Mexico City to Oakland at least temporarily, as it evaluates switching those flights to San Francisco. At the same time Volaris is growing its domestic network, with a particular push from its third largest base in Guadalajara.
Mexico's four remaining major carriers – Aeromexico, Volaris, Interjet and VivaAerobus – seized on the opportunities created by the collapse of Mexicana in Aug-2010. Initially the four carriers expanded domestically but in early 2011 began expanding in US markets. Expansion in the US in the immediate aftermath of Mexicana's collapse was not possible due to US FAA Category 1 restrictions, but these were lifted at the end of 2010 when the FAA upgraded Mexico back to a Category 1 safety rating.
Mexico’s three low-cost carriers are planning another year of rapid growth as they continue to benefit from the 2010 collapse of Grupo Mexicana. Interjet, Volaris and VivaAerobus saw their combined domestic passenger traffic grow by 41% in 2011 to 13.8 million passengers. Their international operations expanded even faster last year albeit on a very small base, recording 91% growth to 1.2 million passengers. More rapid growth is expected across both the domestic and international networks as the Mexico’s LCC trio plans to take delivery of 17 additional aircraft in 2012, representing 20% growth and resulting in a combined LCC fleet of 101 aircraft.
The LCC penetration rate in Mexico’s dynamic domestic market reached 54% in 2011, compared to 50% in 2010. The total domestic market grew by 4% in 2011 to 25.455 million passengers, which is still 8% below the peak of 2008 when Mexican carriers transported 27.649 million domestic passengers. But the fact Mexico has been able to grow at all the last two years (in 2010 growth was under 1%) is quite an achievement given the sudden collapse in Aug-2010 of Mexicana, which had about a 28% share of the domestic market.
Mexico’s three big private airport operators released their financial results for the period ending 30-Sep-2011. The Mexican aviation market has been in almost constant flux and consistently unprofitable in the past decade, with many airline casualties resulting partly from the effects of natural disasters and epidemics. But the market has stabilised following the exit of Mexicana. While Mexico’s growth fundamentals remain sound, with a large population, strong economic growth and a populous spread over a large area there is hope for the airports business and these recent results emphasise that.
Each of the operators (Grupo Aeroportuario del Pacifico [GAP], Grupo Aeroportuario del Sureste [ASUR] and Grupo Aeroportuario del Centro Norte [OMA]) reports increased revenues, EBITDA and net profit (notably ASUR and OMA in the latter two categories) with passenger numbers up in all cases except GAP (-2.6%).
Aeromexico has recorded another strong quarter of profits and expects continuing favourable market conditions in Mexico despite the challenging global economic environment. As a result, Mexico’s only remaining legacy airline is planning to increase capacity by another 12% to 13% in 2012, driven partially by the launch of several new routes within Mexico and to the US.
The expected expansion of Aeromexico’s US network is made possible by its expanded partnership with Aeromexico, which will be formalised over the next few weeks and will result in Delta taking a 4% stake in its SkyTeam partner.
One year after the suspension of services at Grupo Mexicana, which became the largest airline casualty since the onset of the global financial crisis, it appears the Mexican market has fully recovered. Mexico’s remaining carriers have been able to quickly absorb Mexicana’s approximately 27% of the domestic market. US carriers have so far been the largest beneficiaries of Mexicana’s demise in the international market but Mexico’s remaining carriers are eager to start narrowing the very wide gap with their foreign competitors.
For the second consecutive quarter Aeromexico has recorded its highest level of profitability in at least 15 years. Mexico’s largest airline group has now made about USD300 million in net profits since the collapse of archrival Mexicana in Aug-2010, reversing several years of unprofitability. Group Aeromexico is now aiming to further improve its profitability and market share, particularly in the international market where it still has a relatively small presence.
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