Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Aeromexico's New Charter Division  
User currently offlineAdriaticus From Mexico, joined May 2004, 1117 posts, RR: 19
Posted (6 years 3 months 1 week 1 day 22 hours ago) and read 4954 times:

Just heard from a source I would consider reliable AM is preparing the launch of a new company, a subsidiary of Consorcio Aeroméxico, which will focus on charter flights alone. The plan calls for using the remaining MD-88s in AM's fleet after they are replaced with B737s (apparently, the MD-82s, MD-83s and MD-87s are not being considered). The new company's employees would not be unionized. The plan is to name it "Aeroméxico Lift". Target launch date is June 1, 2008.

Cheers,
__Ad.


A300/18/19/20/21 B721/2 B732/3/G/8 B741/2/4 B752 B762/3/4 B772/3 DC8/9/10 MD11 TU134/154 IL62/86 An24 SA340/2000 E45/90
20 replies: All unread, jump to last
 
User currently offlineJuventus From United States of America, joined Dec 2004, 2835 posts, RR: 2
Reply 1, posted (6 years 3 months 1 week 1 day 18 hours ago) and read 4908 times:

Good or bad idea, don't know what to think, but I wish them well. I rather see Aladia and Magnicharters grow and expand to the US and Canada, but oh well. Don't know what the range of those MD88s is, can it reach the northern US and Canada, or will they be domestic charters??

User currently offlineGhost77 From Mexico, joined Mar 2000, 5197 posts, RR: 51
Reply 2, posted (6 years 3 months 1 week 1 day 17 hours ago) and read 4883 times:

One sure thing i can say out of the last comment, Magnicharters does not has plans and will never go International, except for Cuba which they fly from time to time. Magnicharters focus is the mexican market. They tried going to MCO, LAS and LAX but they can't offer cheap prices as they're used to and with high quality service. I worked there back on 06, early 07 and my ex. boss just call me last week for a chat, i'll see what's new there!!

g77



Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
User currently offlineLH498 From Germany, joined May 2007, 215 posts, RR: 0
Reply 3, posted (6 years 3 months 1 week 1 day 15 hours ago) and read 4813 times:

I think it's a good idea, as with a lower cost structure it could better handle the lower yielding charter market and increasing income. AM handles a good number of charter operations so creating a division specifically for this market would enable them to compete better against Aladia, Magnicharters et al(including foreign charter airlines).

I see AM focusing more on its natural market as a legacy-carrier: longhaul flights, high yielding pax(cargo should be next).
By creating this divisions they can attack each different market accordingly.
Interesting to note that they are not counterattacking the presence of LCCs by creating one of their own but rather by offering a differentiating product.


User currently offlineFA4AM From Mexico, joined Nov 2004, 36 posts, RR: 0
Reply 4, posted (6 years 3 months 1 week 1 day 10 hours ago) and read 4690 times:

Well, this friday, AM's CEO Andrés Conesa confirmed this new division to Mexico's Flight Attendant Association (ASSA) on a special meeting.

It will start with three MD and they will be hiring retired AM pilots. The contract will be signed with ASPA and ASSA is willing to sign the new FAs as well, altough under another working scheme... Those MDs will be changed for B737 as more of them become available, nothing soon as it seems.

Out of the topic, but still important information. As Ghost77 mentioned, one more B767 is on its way to AM, but the governing board is considering to get more B767 (sadly, no more B777 at the moment) for the long haul market. It seems like AM's longhaul service has boost up revenue. Also, all Premier seats in the B767 fleet will be changed to meet the same traveling experience on the B777s.

Aeromexico Connect will be soon placing another order for the EMB190 as it has shown to be a succes for the short haul market, this announcement should be made real soon.

Aeromexico will also be expanding and growing its sell-points in the domestic market. Aeromexico.com will be experiencing some new changes, ticket payment will become availabe in banks, ATM machines, supermarkets, department stores, et. al. You may guess which bank and which stores will be participating -those owned by the members of the controlling group.

Finally, Barraza and Conesa asked us (the FAs) to sign a productivity agreement with the company to help reduce the labour cost...

More info said, but those are the most important topics.


User currently offlineRojo From Spain, joined Sep 2000, 2431 posts, RR: 9
Reply 5, posted (6 years 3 months 1 week 1 day 9 hours ago) and read 4669 times:



Quoting FA4AM (Reply 4):
Aeromexico will also be expanding and growing its sell-points in the domestic market. Aeromexico.com will be experiencing some new changes, ticket payment will become availabe in banks, ATM machines, supermarkets, department stores, et. al. You may guess which bank and which stores will be participating -those owned by the members of the controlling group.

mmmm.... HSBC!!!! at least they open until 7pm

Hope it helps to boost demand, but I am a little bit skeptical. I know that most of the employees (from the Bank you mention) have been flying Volaris and Interjet (personal trips). Pseudo cheap AM fares were offered to employees but they were more expensive than most of the faresavers...


User currently offlineAR385 From Mexico, joined Nov 2003, 5946 posts, RR: 30
Reply 6, posted (6 years 3 months 1 week 1 day 9 hours ago) and read 4657 times:
Support Airliners.net - become a First Class Member!

The key thing is if I read correctly that they will be using non-unionized pesonnel.


MGGS
User currently offlineGhost77 From Mexico, joined Mar 2000, 5197 posts, RR: 51
Reply 7, posted (6 years 3 months 1 week 1 day 7 hours ago) and read 4635 times:

Quoting FA4AM (Reply 4):

Thanks FA4AM! So good to read you again in the forums., please visit us more often! Now that you confirmed some of the info i've gotten, i'll share mine, new names i heard were: Aeromexico Lite, Aeromexico Lift, Aeromexico Fun and Aeromexico Leisure. The former just makes me remember quite well the late 90s and the beginning and short lived Continental Lite as well as United Shuttle, a very important scenario in the US aviation and more recently, we've seen Ted come and now going, Song singing and now hushed... list goes on and WN keeps on rocking!!!

I really like this whole new idea and concept, very hopefully, this project statys this way and far from AM's domestic route system, and they really make up a hard up front and focus on building something incredible out of CUN, ACA, SJD, PVR, CZM, MZT and more beaches just like the failed attempts of Latur, AeroCancun, Taesa and Allegro just to name a few.

It also makes me wonder, what if, later, AM starts to introduce its Lite (one single class config frames?) into its domestic network with this new labor contracts and all of a sudden on the latter we just get to have Lite and Connect in Mexico and leaving Aeromexico for the international market. An AM Lite sounds well in this new times, almost like QA's in MX.

Can you confirm to us if Lite or whatever its called in the end is due for charters only? Possible to see them later or in the start doing some schedule flights?

Hopefully too, we get to see AeroMexico Cargo which is also now on the pipeline. What's really wonderful, is the growth of the long haul fleet, its a shame no B777s are on the second hand market, but if AM is to go alà LA, ok then!! Bring then more B767s and fought hard with frequencies and thankfully too, interiors are getting a change, there's still lots of life on many B767s. LA will fly those beauties probably till 2020 and a little more.

Yes, ex and sole ever flown BRA B767-300ER is due for AM as well another B767 is planned and the wish is to bring on by mid-08. Also, according to AM, 2006 stock exchange annual report, initial deposit was for 06 EMB190s when signed, I imagine 02 more are to join the 04 active frames.

Quoting AR385 (Reply 6):

I understand they'll be unionized in ASPA and ASSA but with lower payments and benefits. Whatever it is, good they'll create more jobs and boost more Mexico's aviation. There's still more to do and catch out from that big cake out there. It's a shame MX and AM weren't sold in 2000.

g77

[Edited 2008-01-13 01:02:28]


Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
User currently offlineLatinplane From United States of America, joined Dec 1999, 2696 posts, RR: 14
Reply 8, posted (6 years 3 months 1 week 1 day 5 hours ago) and read 4605 times:



Quoting Ghost77 (Reply 7):
Aeromexico Lite, Aeromexico Lift, Aeromexico Fun and Aeromexico Leisure.

Those names sounds pretty dull. Not that I'm a big Mexican cultural-nationalistic-hyprocite, like many Mexican people I've met but god, just AeroMex would do the trick. Big grin LOL... I'm so blunt, ain't I!

 Smile LatinPlane


User currently offlineAdriaticus From Mexico, joined May 2004, 1117 posts, RR: 19
Reply 9, posted (6 years 3 months 1 week 22 hours ago) and read 4524 times:



Quoting AR385 (Reply 6):
The key thing is if I read correctly that they will be using non-unionized pesonnel

My sources tell me that's one key item about this. At the moment, the business plan states only ex-AM commanders and new, out-of-the-street young hires are to fly the a/c, and should not unionize. As for the rest, the current BP states F/As can be unionized or not, but if they are, the initial collective contract is to be nothing close to the current ones.

A word about the a/c: the MD-88s will supposedly be converted to 162-pax, single-class configuration.

Cheers!
__Ad.



A300/18/19/20/21 B721/2 B732/3/G/8 B741/2/4 B752 B762/3/4 B772/3 DC8/9/10 MD11 TU134/154 IL62/86 An24 SA340/2000 E45/90
User currently offlineAdriaticus From Mexico, joined May 2004, 1117 posts, RR: 19
Reply 10, posted (6 years 3 months 1 week 22 hours ago) and read 4512 times:



Quoting Juventus (Reply 1):
Don't know what the range of those MD88s is, can it reach the northern US and Canada, or will they be domestic charters??

With the statutory extended range of 2640nm, the MD-88 can comfortably fly city pairs like ANC-TIJ, PDX-CUN, YHZ-CUN, MTY-PTY, MTY-YYZ, CUN-MAO or CUN-LIM. That gives you an idea of the flexibility it brings to the business plan...

Quoting Latinplane (Reply 8):
just AeroMex would do the trick.

Doesn't it sound to much like AeroMexpress?

__Ad.



A300/18/19/20/21 B721/2 B732/3/G/8 B741/2/4 B752 B762/3/4 B772/3 DC8/9/10 MD11 TU134/154 IL62/86 An24 SA340/2000 E45/90
User currently offlineAR385 From Mexico, joined Nov 2003, 5946 posts, RR: 30
Reply 11, posted (6 years 3 months 1 week 22 hours ago) and read 4499 times:
Support Airliners.net - become a First Class Member!

AeroMexico already tried this type of leisure airline a while back, with AeroMonterrey and a pair of 752, one of which later went on to take a swim in the Pacific Ocean next to Lima. I know for sure that at least the FA's in AeroMonterrey were non-union.


MGGS
User currently offlineAdriaticus From Mexico, joined May 2004, 1117 posts, RR: 19
Reply 12, posted (6 years 3 months 1 week 21 hours ago) and read 4481 times:



Quoting AR385 (Reply 11):
AeroMexico already tried this type of leisure airline a while back, with AeroMonterrey

Yep. However, AeroMonterrey's dissapearance had more to do with Gerardo de Prevoisin's ambitious plans with reference to Alas de America than with a failure of the plan. And you are right, the F/As were not-unionized (like those in Aladia nowadays).

Quoting AR385 (Reply 11):
a pair of 752, one of which later went on to take a swim in the Pacific Ocean next to Lima.

Yep. Sad event. The FP on that flight, Capt. Schriber, was a first-degree uncle of a compadre of ours.

View Large View Medium
Click here for bigger photo!

Photo © Carlos A. Morillo Doria
View Large View Medium
Click here for bigger photo!

Photo © Jay Selman


__Ad.



A300/18/19/20/21 B721/2 B732/3/G/8 B741/2/4 B752 B762/3/4 B772/3 DC8/9/10 MD11 TU134/154 IL62/86 An24 SA340/2000 E45/90
User currently offlineFA4AM From Mexico, joined Nov 2004, 36 posts, RR: 0
Reply 13, posted (6 years 3 months 1 week 15 hours ago) and read 4351 times:



Quoting Ghost77 (Reply 7):
Thanks FA4AM! So good to read you again in the forums., please visit us more often! Now that you confirmed some of the info I've gotten, I'll share mine, new names i heard were: Aeromexico Lite, Aeromexico Lift, Aeromexico Fun and Aeromexico Leisure.

Thks Ghost, well, altought I do not post much, I visit the forum a lot. I am always looking forward to reading your posts even tough you do not like AM much, je je. And just to add one more option to the name the new company will be getting, let me share "Aeromexico Travel", this one I heard from someone really close to the project.

Quoting Latinplane (Reply 8):
Those names sounds pretty dull. Not that I'm a big Mexican cultural-nationalistic-hyprocite, like many Mexican people I've met but god, just AeroMex would do the trick. LOL... I'm so blunt, ain't I!

I agree with you, I just don't understand why everything in Mexico has to be named in english, considering that spanish is is the second or third most spoken language in the world and provided that a name in spanish or even latin could make a bigger impact. Well, those in Marketing ought to know better.

Quoting Ghost77 (Reply 7):
Can you confirm to us if Lite or whatever its called in the end is due for charters only?

Well, at least that is what Barraza and Conesa want us to think. I am pretty sure, as you suggest, that this new "charter" airline could pretty much fill in the gap as the "low cost carrier" that AM desperately needs to maintain its supremacy in the domestic market. If it works out for the Aeromexico group, well, so be it. On the other hand, I am suspicious about it because that airline could grow even bigger than Aeromexico and who knows, they might eventually get much of the international market as well... Hope ASSA gets the contract.

And it really makes me wonder, why are they considering to start a new "charter airline" when revenue for charter flights between 2006 and 2007 only grew up 1%, going from 2 to 3% of the airline's total.


User currently offlineRojo From Spain, joined Sep 2000, 2431 posts, RR: 9
Reply 14, posted (6 years 3 months 1 week 14 hours ago) and read 4331 times:



Quoting FA4AM (Reply 13):
And it really makes me wonder, why are they considering to start a new "charter airline" when revenue for charter flights between 2006 and 2007 only grew up 1%, going from 2 to 3% of the airline's total.

I shouldn't say this, but it is part of the strategic plan to lower AM's cost structure so it can compete with the LCC's. We are in the middle of a price war in Mexico and the airline industry is yelling for consolidation. With oil prices touching USD$100, it is impossible for airlines to make a profit with the fares we have seen; but all attempts to increase fares have been unsuccessful. On friday, many papers were reporting that airlines like AM, MX, 6A and QA had fuel surcharges of up to MXN$500 per segment and others like Volaris and Avolar had check in surcharges. Therefore, Interjet decided to get rid of all surcharges and Viva said they will not introduce a fuel surcharge... with overcapacity in the industry, it is logical to see revenue managers trying to fill airplanes at a big cost.


User currently offlineCessnalady From Mexico, joined May 2004, 310 posts, RR: 4
Reply 15, posted (6 years 3 months 2 days 16 hours ago) and read 3955 times:

Family members of mine who are active in ASPA tell me two things: (1) the proposed name is AeroMexico Lift, and (2) Consorcio AeroMéxico's big idea is to employ non-unionized pilots only; i.e., AM captains will need to either retire or quit (seems improbable), sign an agreement with ASPA whereby they will refrain from forming a new labor union, and voilá, they can join AeroMexico Lift. Co-pilots will be hired out of the street. Four MD-88s will form the start-up fleet of this venture. CUN-Canada and CUN-USA budget flights are the primary target.

Not a word about flight attendants.

Marie


User currently offlineJuventus From United States of America, joined Dec 2004, 2835 posts, RR: 2
Reply 16, posted (6 years 3 months 2 days 15 hours ago) and read 3904 times:



Quoting Cessnalady (Reply 15):
CUN-Canada and CUN-USA budget flights are the primary target.

That's what I was thinking. Competition between Cancun and the US/Canada is intense, but Cancun is where people want to go. I'm just a little concerned, how much more can that airport take with only 1 runway?

My birthday wish, they get a couple of second hand 767s and charter to Europe from good old Cancun.......


User currently offlineGhost77 From Mexico, joined Mar 2000, 5197 posts, RR: 51
Reply 17, posted (6 years 2 months 4 weeks 1 day 20 hours ago) and read 3778 times:



Quoting FA4AM (Reply 13):
Thks Ghost, well, altought I do not post much, I visit the forum a lot. I am always looking forward to reading your posts even tough you do not like AM much, je je. And just to add one more option to the name the new company will be getting, let me share "Aeromexico Travel", this one I heard from someone really close to the project.

Mr A!! True i don't like but nor hate it! It just another mexican carrier that i really hope the best and do what's best for them!! I really hated its admin under CINTRA and the compadrazo's to name a few CEO's, i'm sure a dozen inside more know that Conesa and that most probably would have done good and better things long before... but anyway, probably in next life... as for now things are running and hopefully AM gets a brighter future and start having black numbers in 18 months as forecasted by Barraza.

And lets officialy welcome AeroMexico Travel. Hopefully we have a different and colorful ad-hoc c/s for this mission.

Quoting FA4AM (Reply 13):
Well, at least that is what Barraza and Conesa want us to think. I am pretty sure, as you suggest, that this new "charter" airline could pretty much fill in the gap as the "low cost carrier" that AM desperately needs to maintain its supremacy in the domestic market. If it works out for the Aeromexico group, well, so be it.

I would totally go for it!! If this is needed in order to survive, i would just go for it. Look at Allegiant, taking all AM/AS MD80s around and getting black numbers. There's still much to do with this frames and if for the leases they aren't getting any far till 2010, then damn it, kick the market and give some headaches... but considering the "Travel" has been officially selected it sure its focus will be the charters.

Quoting FA4AM (Reply 13):
On the other hand, I am suspicious about it because that airline could grow even bigger than Aeromexico and who knows, they might eventually get much of the international market as well... Hope ASSA gets the contract.

Considering the "Travel" titles, it will grow but moderately. I think AM will focus with Connect for now to the domestic market whereas I see AM more international.

Quoting FA4AM (Reply 13):
And it really makes me wonder, why are they considering to start a new "charter airline" when revenue for charter flights between 2006 and 2007 only grew up 1%, going from 2 to 3% of the airline's total.

You sure? Wow had no idea it was a very small %. I don't have the numbers handy but I'll try to bring the revenue for Jan-Sep07 later. As for the number of passengers for Jan-Sep 07 here's what i have (I'm including 5D):

Domestic 2006: 125,000
Domestic 2007: 082,000

International 2006: 112,000
International 2007: 310,000

Total 2006: 237,000
Total 2007 (Jan-Sept): 392,000

We have to even consider 2006 was an active charter year for AM in Germany but lately and as no surprise for me and since 2006 AM has been focusing a lot and growing vastly its numbers of passengers with charters. Year to year it was a net growth of 39.55%. And we are still even missing the last Q stats!!

Hopefully soon i get some pictures of AMTravel which heard is due to start operations March 1st 2008?

g77



Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
User currently offlineRojo From Spain, joined Sep 2000, 2431 posts, RR: 9
Reply 18, posted (6 years 2 months 4 weeks 1 day 17 hours ago) and read 3717 times:



Quoting Ghost77 (Reply 17):
I would totally go for it!! If this is needed in order to survive, i would just go for it. Look at Allegiant, taking all AM/AS MD80s around and getting black numbers. There's still much to do with this frames and if for the leases they aren't getting any far till 2010, then damn it, kick the market and give some headaches... but considering the "Travel" has been officially selected it sure its focus will be the charters.

Allegiant business plan is different from AeroMexico's business plan. The MD80 has proven to be the perfect airplane for Allegiant because it is a low cost airline with a low utilization rate of the MD80's; additionally, Allegiant owns most of the MD80's in its fleet (some of them paid with loans, but they bought them for $3 to $5 million USD a piece), so they don't pay a lease for most of them. If AM transfers some MD80's to a leisure division, the MD80 could be a good aircraft "only" if they keep the newest and cheapest ones. We all know that AM has been paying high lease prices for the MD80's, because contracts were signed before 2001 but they need to renegotiate leases or find the way to get them cheap because JetA prices do not help when operating these type of aircraft.


User currently offlineSkyone From Mexico, joined Feb 2001, 416 posts, RR: 0
Reply 19, posted (6 years 2 months 4 weeks 1 day 17 hours ago) and read 3712 times:



Quoting Juventus (Reply 16):
That's what I was thinking. Competition between Cancun and the US/Canada is intense, but Cancun is where people want to go. I'm just a little concerned, how much more can that airport take with only 1 runway?

I was in CUN yesterday and the new second runway is on its way. From the air you can see that it has been fully design (the whole path is finished). It will be across the main street and will have a bridge to conect it with the other runway a la DFW. So Cancun Airport knows that it has to grow as yesterday it took more than half an hour for the airplanes to get clear for take off as the airport was crowded. If they do not grow, then the new Riviera Maya airport will take its business.


User currently offlineMTYFREAK From Mexico, joined Apr 2004, 375 posts, RR: 2
Reply 20, posted (6 years 2 months 2 weeks 5 days 20 hours ago) and read 3462 times:

According to this article the MD 80's will be configure in a single class,

Makes sense for a charter airline,

article in Spanish:

http://www.aerolatinnews.com/index.php?accion=noticia&id_noticia=23069



Only here for the beer...
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Aeromexico New C/S posted Sat Mar 10 2007 10:02:09 by Guilledc10
Aeromexico New International Destinations posted Fri Jan 5 2007 02:38:33 by Krasof
AeroMexico's New Uniforms posted Mon Nov 13 2006 23:07:24 by Latinplane
AeroMexico New Long Haul Changes/Plans/Fleet posted Sat Nov 11 2006 18:33:16 by Ghost77
AeroMexico New Livery And Delta posted Tue Sep 5 2006 12:29:27 by AR385
Aeromexico New Colors posted Tue Jul 25 2006 22:30:33 by Wedgetail737
Aeromexico New Color Scheme, Is It For Real? posted Sat Feb 4 2006 07:07:32 by RvA340
AeroMexico New B737-700 Order? posted Fri Jun 17 2005 05:36:02 by Ghost77
Air India's Charter Division Buying Boeing Too posted Mon May 16 2005 15:22:09 by Reggaebird
AeroMexico's New Website posted Tue Oct 5 2004 02:21:46 by CAL
Adria Wings..new Charter Startup Croatia posted Fri Jan 25 2008 04:26:48 by DHR
A New Charter Airline For GRB - MetJet posted Fri May 11 2007 23:01:48 by KarlB737
Aeromexico New C/S posted Sat Mar 10 2007 10:02:09 by Guilledc10
Aeromexico New International Destinations posted Fri Jan 5 2007 02:38:33 by Krasof
AeroMexico's New Uniforms posted Mon Nov 13 2006 23:07:24 by Latinplane
AeroMexico New Long Haul Changes/Plans/Fleet posted Sat Nov 11 2006 18:33:16 by Ghost77
AeroMexico New Livery And Delta posted Tue Sep 5 2006 12:29:27 by AR385
Aeromexico New Colors posted Tue Jul 25 2006 22:30:33 by Wedgetail737
Aeromexico New Color Scheme, Is It For Real? posted Sat Feb 4 2006 07:07:32 by RvA340
AeroMexico New B737-700 Order? posted Fri Jun 17 2005 05:36:02 by Ghost77