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OneWorld - Lack Of Airline Partner In Mexico  
User currently offlinemiaami From United States of America, joined Jul 2007, 590 posts, RR: 0
Posted (1 year 4 months 1 week 1 day 14 hours ago) and read 3625 times:

Now that Mexicana has ceased operations are there any plans to bring in a new partner to fill the void? This is an interesting article about the Mexican market.

http://centreforaviation.com/analysi...grab-market-share-in-mexico-111229

Could a LCC mexican carrier be considered as a possible partner for OW?

11 replies: All unread, jump to last
 
User currently offlineEddieDude From Mexico, joined Nov 2003, 7587 posts, RR: 43
Reply 1, posted (1 year 4 months 1 week 1 day 14 hours ago) and read 3557 times:

Well, AA has a big coverage of MEX from DFW, so it is easy for AA and for oneworld members that serve DFW to access lots of Mexican secondary cities (when the geography makes sense of course). In addition, both LA and future member AM-Transportes Aereos Meridionais (Brazil)">JJ have codeshare and mileage agreements with AM, so for them their needs have kind of been solved.

Of the non-legacy carriers, we already have VW codesharing with UA. Perhaps AA could try to work out a deal with Interjet in the future. As the article mentions, Interjet is sort of a hybrid. It is an LCC but it is more comfortable and more international than the other LCCs, so who knows. In any case, I would not expect anything like that to happen in the near future. Just my thoughts.



Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently onlinemhkansan From United States of America, joined Jan 2010, 685 posts, RR: 1
Reply 2, posted (1 year 4 months 1 week 1 day 11 hours ago) and read 3282 times:

Quoting EddieDude (Reply 1):
As the article mentions, Interjet is sort of a hybrid. It is an LCC but it is more comfortable and more international than the other LCCs,

Sounds a lot like WestJet, which AA is expanding its's partnership with.


User currently offlineEddieDude From Mexico, joined Nov 2003, 7587 posts, RR: 43
Reply 3, posted (1 year 4 months 1 week 1 day 6 hours ago) and read 2878 times:

Yes, I would like to try Westjet some time. It seems DL have a comprehensive agreement with them as well.

Interjet is one-class only, but the seat pitch is very generous and the cabin looks very smart because it is all leather-gray. Their latest tv ad reminds me a lot of VS. They may have a loyalty program, but I don't think it is mileage-based.



Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently onlineAR385 From Mexico, joined Nov 2003, 6236 posts, RR: 31
Reply 4, posted (1 year 4 months 1 week 1 day 5 hours ago) and read 2825 times:
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Quoting miaami (Thread starter):
Could a LCC mexican carrier be considered as a possible partner for OW?

I don´t think there is a choice, since AM won´t leave Skyteam. As EddieDude says, what will most likely occurr is an expansion of existing code-sharing agreements with AM and some new ones, probably with Interjet.


User currently onlineBigGSFO From United States of America, joined Jun 2005, 2926 posts, RR: 6
Reply 5, posted (1 year 4 months 1 week 1 day 5 hours ago) and read 2784 times:

Well there's not much of a choice left in Mexico, is there? I would imagine if Mexicana was reborn or another carrier with substantial funding started then perhaps Oneworld would have a potential partner. But until then (which is more magical thinking than reality, at least for now), then Oneworld will continue on without a Mexican member.

Now, hypothetically, does anybody think LAN would expand their reach into Mexico?


User currently onlineAR385 From Mexico, joined Nov 2003, 6236 posts, RR: 31
Reply 6, posted (1 year 4 months 1 week 1 day 4 hours ago) and read 2753 times:
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Quoting BigGSFO (Reply 5):
Now, hypothetically, does anybody think LAN would expand their reach into Mexico?

As in more flights or as in a LAN-México?

The latter? I wouldn´t think so. I´m not current with the law, but I do believe airlines in Mexico cannot have more han 25% foreign ownership. If it is more than that, they have to be shares where the control remains within the Mexican investors. But I´m pretty sure the 25% limit is the current law. LAN does not usually enter into agreements where they can´t have 100% control of their airline.


User currently offlineSCL767 From Chile, joined Feb 2006, 8824 posts, RR: 5
Reply 7, posted (1 year 4 months 1 week 1 day 4 hours ago) and read 2705 times:
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Quoting BigGSFO (Reply 5):
Now, hypothetically, does anybody think LAN would expand their reach into Mexico?

LATAM already has a cargo affiliate based in México (Aerotransportes Mas de Carga, S.A. de C.V.) and LAN has previously shown an interest in directly entering the Mexican market... Chile's LAN eyeing stake in Aeromexico: paper


User currently offlineEddieDude From Mexico, joined Nov 2003, 7587 posts, RR: 43
Reply 8, posted (1 year 4 months 1 week 13 hours ago) and read 2060 times:

I would not be surprised if at some point in the future LAN Ecuador would try to challenge AM, who recently announced UIO. Other than that, I would not expect much from LA in Mexico other than tweaking frequencies or adding one or two more weekly flights on the existing routes here and there (and expanding their cargo capabilities). As AR385 metioned, Mexican foreign investments law prohibits foreign investors owning control of a Mexican carrier. I believe 25% is, as he said, the limit for voting shares. An authorization for the ownership of a larger percentage involving non-voting shares could be obtained, but never for control.


Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently onlineAR385 From Mexico, joined Nov 2003, 6236 posts, RR: 31
Reply 9, posted (1 year 4 months 1 week 10 hours ago) and read 1907 times:
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Quoting SCL767 (Reply 7):
LAN has previously shown an interest in directly entering the Mexican market... Chile's LAN eyeing stake in Aeromexico: paper

That piece of news is six years old. A lot has changed since then, both in AM and in LAN.


User currently offlineLJ From Netherlands, joined Nov 1999, 4435 posts, RR: 0
Reply 10, posted (1 year 4 months 1 week 10 hours ago) and read 1896 times:

Quoting SCL767 (Reply 7):
and LAN has previously shown an interest in directly entering the Mexican market... Chile's LAN eyeing stake in Aeromexico: paper

That was in 2007, a lot has changed. Moreover, DL alkready owns 4.17% (unless it's somehow diluted) which means LAN can only get 20.83% (if no other foreigner has any stake).


User currently offlineLJ From Netherlands, joined Nov 1999, 4435 posts, RR: 0
Reply 11, posted (1 year 4 months 1 week 10 hours ago) and read 1896 times:

Quoting SCL767 (Reply 7):
and LAN has previously shown an interest in directly entering the Mexican market... Chile's LAN eyeing stake in Aeromexico: paper

That was in 2007, a lot has changed. Moreover, DL already owns 4.17% (unless it's somehow diluted) which means LAN can only get 20.83% (if no other foreigner has any stake).


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