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Mexican commercial airlines could lose up to USD1.2 billion in 2008


Mexcio, like India and the US, is another flash point aviation market. Mexico’s Director General of Civil Aeronautics (DGCA), Gilberto Lopez Meyer, stated Mexican commercial airlines, feeling the pressure from escalating oil prices and intense competition in the domestic market, could lose up to USD1.2 billion in 2008. The prediction was based on oil averaging around USD130 per barrel. [1450 words]

Unlock the following content in this report:


  • Double digit growth in May-08; but sharp decline expected in Sep-08
  • Rapid influx of LCCs in recent years; focusing on market share rather than profitability
  • Consolidation expected in Mexico and wider Latin America region
  • Transport Ministry continues to suspend airlines regarding air space fees; Avolar and Nova Air current targets
  • Avolar seeks new partners
  • Aerocalifornia future in doubt; Interjet acquires Aerocalifornia's Mexico City slots
  • Interjet cuts two routes amid rising fuel costs
  • vivaAerobus Introduces new fare category with an AUD10 incentive to travel with hand luggage only
  • Volaris launches new service

Graphs and data:

  • Mexico LCC domestic capacity (seats) trend: Nov-01 to Nov-07
  • Interjet route map: Aug-08
  • Domestic Mexico capacity (seats): Week commencing 04-Aug-08
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