Wednesday, November 26, 2008

Mexican Airline Market should be consolidated

Mexicana A320-231 N361DA (cn 361) taxies at San Francisco (SFO).
(Photo by Michael Carter)

Mexicana CEO Manuel Borja, who saw his company's takeover bid for rival Aeromexico rejected by Mexican authorities last year (ATWOnline, Oct. 19), said he remains a "firm believer that the Mexican market should become consolidated." Speaking at last week's ALTA Airline Leaders Forum in Cancun, Borja said he was in favor of competition but only among airlines "that have differentiating points." He said Mexico needs "different models in the market.

Actual competition comes from offering different products and different solutions according to the different needs of our customers. One national airline or trunk airline, two low-cost airlines, complemented by regional airlines, is an example." He said there is "nothing coming" regarding an MX/AM merger but that he believes "consolidation is unavoidable in the coming years." He said six Mexican carriers have gone bankrupt recently, including Alma de Mexico this month.

(Air Transport World / ATWOline)

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