Volaris CEO Update
Volaris CEO Enrique Beltranena provides insight on the US transborder market, the Mexican domestic market and the upcoming codeshare partnership with Frontier Airlines.
Transcript
Enrique BeltranenaWell it's too early to say. I think the subscription model we launched in reality in December, we today have about 1,000 customers, so it's not that big yet, and we like to keep it like that. I mean, I would like to keep it small enough, maybe get to 10,000 customers by the end of this year, but keep it controlled so we understand that it really works. But what we're seeing is, the market it's already getting it. And I think something which we are probably the first one, the pioneers doing it in the world. It's something that may be expanded later on, since it's something very new. I mean, we're seeing a mixture of customers, business to corporate kind of traffic getting mixed with some other people that are doing leisure activities. And I think that that's going to mature much more as we grow.
The US traffic recuperated slowly and keeps on recuperating slowly between Mexico and the U.S. Yields are sustainable and are decent, and capacity has been, I would say, decently managed among every player in the market. It's not dramatically good, but it's sustainable.
No, there we have seen a deterioration of yields, which is very dramatic. And I mean, I don't know if you are aware, but consumption in Mexico is kind of going down, so you see a lot of pressure on yields which is happening as we speak. It's doing well. I think it's ... We only started in Los Angeles on March 16th, and we're starting San Salvador, Washington, San Salvador, New York now on April 17th. But the bookings look well. It's a small operation. It's two, three times a week, with A3 engines so it's small enough that we can manage the capacity, but the bookings are pooling very well.
Look, as of today, what I think is we need to get this done. We're still in the phases of getting authority approvals and everything. So I strongly think that we need to pass through this process, launch the project, see the results of the project, and then see what happens, okay. It's too early to say that we will take some more partners.
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