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Mexican LCCs Blamed For Financial Woes Of Legacies  
User currently offlineLaxintl From United States of America, joined May 2000, 25739 posts, RR: 50
Posted (7 years 1 month 3 weeks 1 day 9 hours ago) and read 2114 times:

No surprise. As in many markets LCCs run circles around legacy operators.

Quote:
Mexican LCCs Blamed For Financial Woes Of Legacies
09/04/2007

Mexico's Reforma research group said high operating costs and aggressive competition by a group of startup low-cost carriers are to be blamed for the financial crises now facing legacy carriers.

A comparative financial study of both carriers analyzed by Reforma reveals legacy pilots and flight attendants are less efficient and earn more than those at LCCs. Efficiency levels for flight attendants fluctuate according to each aircraft's seat configuration and the number of employee hired.

Mexicana is using similar arguments to amend its collective work contract with inflight employees so as to save US$25 million, but the Flight Attendants Union rejects blaming their wages on the carriers' current financial crises. Negotiations are now deadlocked between management and the union.

Story (subscription required);
http://www.aviationweek.com/publicat...med+For+Financial+Woes+Of+Legacies


From the desert to the sea, to all of Southern California
9 replies: All unread, jump to last
 
User currently offlineMarcus From Mexico, joined Apr 2001, 1801 posts, RR: 2
Reply 1, posted (7 years 1 month 3 weeks 1 day 8 hours ago) and read 2090 times:

Yeah but Mexican legacy carriers like AM were in a bad situation before the LCC boom in the country, the difference is that people did not have another choice before..............power to the consumer.


Kids!....we are going to the happiest place on earth...TIJUANA! signed: Krusty the Clown
User currently offlineXA744 From Mexico, joined Mar 2004, 734 posts, RR: 3
Reply 2, posted (7 years 1 month 3 weeks 1 day 8 hours ago) and read 2060 times:

Well, I will be flying Aviacsa next week from PVR to MEX and return for only USD 140.00, inclusive of the more expensive than the air fare darn taxes and surcharges. Check this out:

1,. If I were to drive my car, the trip would cost me some USD 300.00, inclusive of gas, toll gates and some quick bites for the road. To that, you would need to add the nightmare of driving and parking in Mexico City !!!...  crazy 

2.- If I were to sit my arse on a luxury coach for 12 plus hours, it would cost me some USD 170.00, inclusive of taxes but without any goodies to nibble on. ...  no 

Now, I don´t know if you could call Aviacsa a legacy, an LCC, or something in between, but you can really tell they are fighting all the other fellas around !!!

... You are right Marcus, this is pure power to the consumer !!! ...  snooty 

Best regards



No matter how you fly...just never get your wings clipped !
User currently offlineCivilav From Mexico, joined Oct 2004, 391 posts, RR: 12
Reply 3, posted (7 years 1 month 3 weeks 1 day 4 hours ago) and read 1990 times:

Quoting XA744 (Reply 2):
Well, I will be flying Aviacsa next week from PVR to MEX and return for only USD 140.00,

That is the price Mexicana is charging today for a Puerto Vallarta to Cancun return FYI any time in September and October... (in fact, it is less $ 1,495 MN which at today's exchange rate is USD 130 something)
Fares are unbelievable at MX this weekend if you want real bargains !!

Greetings from Nomadas Travel in Cancun !


User currently offlineXA744 From Mexico, joined Mar 2004, 734 posts, RR: 3
Reply 4, posted (7 years 1 month 3 weeks 1 day 2 hours ago) and read 1949 times:

Quoting Civilav (Reply 3):
That is the price Mexicana is charging today for a Puerto Vallarta to Cancun

OK, I went to Mexicana´s website and the best deal I could get is USD 171.00 for a PVR-MEX-PVR flying next week. ...  no 

Looks like our friends in Monterrey still beat MX for some 30 bucks on my run. That´s some kind of money, which could easily buy me a yummy dinner and beer at one of those cozy shops in La Condesa. ... wink 

Was unable to check with Aeromexico, as their unfriendly and lousy website is currently experiencing some ups and downs....  irked 

It´s been a while since my last flight with Aviacsa, so I think it will be nice to see what are they up to.

Best regards



No matter how you fly...just never get your wings clipped !
User currently offlineGhost77 From Mexico, joined Mar 2000, 5224 posts, RR: 51
Reply 5, posted (7 years 1 month 3 weeks 1 day 1 hour ago) and read 1928 times:

Such cry babies! Don't cry, don't complain! LOWER FARES, MATCH FARES, INCREASE LOAD FACTORS......

AA, UA, DL, AS, F9, WN, yada yada yada fly with 80s/90s/100s!!!! MX is flying 70s.... AM is flying 65s.... 6A is flying 77s.... QA is flying 75s..... Y4 is flying 88s... IJ is flying 90s as well as Viva.....

AM and MX have been in red for a long time.... and MX management doesn't know how to run an airline with a big advantage of having a business related to aviation... hotels.....

Wrong strategy MX...

As for AM... i'll just leave it there... discussed to death their problems.... and they keep staffing more and more people and increasing destinations....

Quoting XA744 (Reply 2):
Now, I don´t know if you could call Aviacsa a legacy, an LCC, or something in between, but you can really tell they are fighting all the other fellas around !!!

Before the arrival of Low Fares and LCC it was fighting for some respect, with limited help from the government to become a Legacy... today they're or they would become more close to the low fare term... they're fighting hard... they're soon bringing 6 B737-200s and they're searching for 3 more B737-300s after the first 6 get here... 6A know what they're doing... they've been flying with black ink for several years...

Quoting Civilav (Reply 3):
Fares are unbelievable at MX this weekend if you want real bargains !!

Right! Not the best but they're ok! Got a 400usd fare for December 07 to LAS, i'm flying MEX-SJD-LAS-MTY-MEX!!!

g77



Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
User currently offlineFLY2HMO From , joined Dec 1969, posts, RR:
Reply 6, posted (7 years 1 month 3 weeks 1 day 1 hour ago) and read 1924 times:

Quoting Laxintl (Thread starter):
Mexican LCCs Blamed For Financial Woes Of Legacies

That's a given.

I flew Volaris 3x over the summer, and I got to say, what an EXCELLENT product they have. Very good fares, new planes, and the F/As are actually good looking and they will even smile at you.

As far as equipment, cleanliness and seat pitch is concerned, they're not much different than AM or MX, but Volaris sure has better fares, and IFE, and above all waaaay better customer service and attitude towards pax. I will fly them whenever possible, as much as I like AM or MX.


User currently offlineMEA-707 From Netherlands, joined Nov 1999, 4341 posts, RR: 35
Reply 7, posted (7 years 1 month 3 weeks 23 hours ago) and read 1893 times:

exactly, instead of whine they should try to have a competiting product. Short domestic flights in Mexico, also the ones on Aeromar and the former Aerolitoral were unreasonably expensive, no wonder others jumped on the bandwagon.
If MX and AM can't make a profit, even with the monopolies they still have on many sectors, it's more because they are inefficient and overstaffed.



nobody has ever died from hard work, but why take the risk?
User currently offlineJuventus From United States of America, joined Dec 2004, 2835 posts, RR: 2
Reply 8, posted (7 years 1 month 3 weeks 16 hours ago) and read 1816 times:

Quoting Laxintl (Thread starter):
No surprise. As in many markets LCCs run circles around legacy operators

You hit it right on Laxintl. That's pretty much what it is. As far as fares, its hard for MX and AM to match the other Mexican airlines, especially the start-ups, they would bleed red instantly.

AM and MX are taking it from all angles, there's no way they could even fare-match some of the US carriers like Frontier, Sun Country, USA 3000 or even Alaska. Some of those US carriers are also inflicting some damage on the few routes where they compete.


User currently offlineSkyyMaster From , joined Dec 1969, posts, RR:
Reply 9, posted (7 years 1 month 3 weeks 7 hours ago) and read 1727 times:

Given the assumption the Mexico market will evolve like most deregulated markets, how many of the current batch of LCC's will survive? I can't beleive they will all still be flying in a couple of years, but then again we may see Mexico lose one of it's legacies too. Who survives will be interesting.

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