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Aeromexico plans to bolster connectivity and phase out small jets in Mexico City

Analysis

Aeromexico, Mexico's largest network carrier, plans a revamp to its Mexico City hub during 2014 to maximise connectivity as part of its strategy to strengthen the airport as a connection point to the numerous markets it serves in Latin America and solidify its place in the domestic market.

The carrier also plans to phase out its smaller 50-seat Embraer ERJ-145 jets in Mexico City by YE2014 to improve its competitive position and increase its seat count at the slot-controlled airport. Other changes Aeromexico plans to implement includes the introduction of a new shuttle product in some of Mexico's busiest business markets.

Aeromexico's product and schedule improvements occur as Mexico's four largest carriers - Aeromexico, Interjet, Volaris and VivaAerobus - become firmly entrenched in their respective business models and continue to expand in order to ensure they capture their fair share of Mexico's domestic market. As a comprehensive full service carrier, Aeromexico needs to position itself as a competitive force in all passenger segments in order to sustain its stature as Mexico's leading airline. Introduction of a new low fare product Contigo in 2013 in transborder markets from Guadalajara was an imortant move.

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