JOSEMEX
Topic Author
Posts: 1437
Joined: Mon Oct 04, 1999 11:44 am

RUMOR: Iberia To Acquire Stake In Mexicana?

Mon Nov 24, 2003 11:53 am

I was out to dinner last night with some friends from Spain who are in MX), Mexico">MEX on vacation. One of them is a travel agent in Spain, and he insisted that there were very strong rumors regarding MX’s exit from Star and its rumored entry into Oneworld,. According to this rumors, the reason MX might be gravitating towards Oneworld is that IB is supposedly in very advanced talks about purchasing an interest in MX (within Mexico’s foreign investment in airlines restrictions, of course), which would be the catalyst for MX entering into Oneworld.

I insist, this is only a rumor, but I think if MX is really serious in starting transatlantic flights, it would benefit from IB’s extensive latin america-Europe experience, notwithstanding IB’s reputation for not-precisely-top-notch onboard service. (considering the other Oneworld transatlantic power (BA) has very limited service to the region).

Any thoughts on this? Has anyone else heard something similar?
 
fly727
Posts: 1752
Joined: Tue Jul 29, 2003 8:27 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Mon Nov 24, 2003 12:00 pm

No offense, but i hope it doesn't happen. Iberia's move with Aerolineas Argentinas was nothing but disaster for both companies.... In other thoughts, I don't know if IB is be strong enough to do such a move (unless acquiring only a small stake in MX). IB recently lost 25.8 USD million (my source, Entrelineas Magazine does not state the time period though) and reduced their seats offer in a 4%.

RM  Smile
There are no stupid questions... just stupid people!
 
AR385
Posts: 6742
Joined: Fri Nov 07, 2003 8:25 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Mon Nov 24, 2003 1:13 pm

A friend of mine at IB says ops has had intensive meetings last month about the issue. On the last one Xavier de Irala was present. The rumor is that they've agreed at OneWorld to lure MX in but they want IB to actually buy into it.

I see it as a good Strategic fit for IB and MX. IB it can move its hub from MIA to CUN, send its A-319's back to Spain and get Aerocaribe to do the Central American feeding, It might even diminish traffic into MX), Mexico">MEX by making CUN a good catchment area to all South-Central Mexican cities' traffic who now have to get to MX), Mexico">MEX to catch their flight to Spain.

Let's see how long the Spanish magnificent style of management takes to run MX into the ground, like AR, Ladeco and VIASA.
 
navega
Posts: 467
Joined: Tue Nov 02, 1999 10:58 pm

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Mon Nov 24, 2003 1:21 pm

Just rumors folks, not true. Just plain wishing and hoping.

More likely for AA to get involved with MX as they were about to purchase MX before September 11.

I cannot see IB involved with MX. Not a good match
and MX is better managed.

One World is probably the next Alliance but we will have to wait until January to hear the real story.

This is really exciting to say the least.
 
AR385
Posts: 6742
Joined: Fri Nov 07, 2003 8:25 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Mon Nov 24, 2003 4:01 pm

MY mistake, it's not Xavier de Irala the guy, but Fernando Conte.

Ar 385
 
jopavon
Posts: 282
Joined: Wed Nov 05, 2003 12:53 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Mon Nov 24, 2003 9:05 pm

No offense, but I hope it doesn't happen. Iberia's move with Aerolineas Argentinas was nothing but disaster for both companies
Yes and no, IB was controlled by SEPI (like the Fobaproa in Mexico) and SEPI made a reorganization plan for IB which has been very successful. Their cash flow is great, and they have good money in the bank. SEPI tried to do the same thing with AR, but their unions didn't let that happen, so they sold that to a new investor: the same group that holds 25% of JK.
IB is doing fairly well in terms of profit.

To be honest, I particularly dislike IB, and I don't think MX fits in their strategy. They foresee a union with BA as KL is doing with AF. If they were thinking small, TP is more strategic than MX.

IB relation with it's pilot union is a mess. Every summer they are in a tough battle. Last year seamed to be the first with not that big disruption...and I think MX's relation with its unions is by far much better.

What CINTRA could be doing is trying to get the purchase price higher, that could be the reason to pullout from *A and have no compromises of any kind.

Rumors have been around for a long time, once it was UA, then LH, at some point CO and AA. Now IB. The topic is getting hot, but the privatization process will be long if they have to go with an international public licitation.
 
jopavon
Posts: 282
Joined: Wed Nov 05, 2003 12:53 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Tue Nov 25, 2003 7:18 am

To complement my earlier comment, the latest news on IB-BA arrangement is that they could merge common routes. I think IB will focus in it's strategic alliance in Europe.

Here's the link:
http://news.airwise.com/stories/2003/11/1069670743.html
 
LeoDF
Posts: 349
Joined: Mon Aug 02, 1999 11:44 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Tue Nov 25, 2003 7:27 am

Greetings!

Even if American was about to buy Mexicana previous to 9-11, they are all in the same alliance. So, I wouldn't take out the possibility that maybe it's true.

But I also think Iberia would mess up Mexicana!! Their service really isn't what anyone expects, even thought their load factors are quite impressive (75%+).

Time will tell! How I hate time sometimes!!!

See ya all folks!!

A. De Leo
Lloyd Aereo Boliviano
 
Iberia340600
Posts: 758
Joined: Fri Oct 10, 2003 5:57 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Tue Nov 25, 2003 3:03 pm

No offense, but i hope it doesn't happen. Iberia's move with Aerolineas Argentinas was nothing but disaster for both companies.... In other thoughts, I don't know if IB is be strong enough to do such a move (unless acquiring only a small stake in MX). IB recently lost 25.8 USD million (my source, Entrelineas Magazine does not state the time period though) and reduced their seats offer in a 4%.

Fly727:
IB's mishaps with AR and Viasa happened when IB was controlled by the spanish state holding company SEPI...things are different now and any interest taken in another airline would be done seriously, not so when you are talking about a money hungry state holding company. I dont blame AR and Viasa's troubles on IB...I blame it on the spanish governments mismanagement and greediness.

Now...working for the company I can say I have not heard any rumors regarding purchasing a stake in MX...nor do I think it is in Iberia's best interest. I think it would make more sense to purchase a stake in TAP...which they have already held talks.

As far as being able to purchase a stake in another airlline...IB is very financially secure right now...we are one of the most profitable airlines in Europe right now and our financial funds are quite high. Not sure where the number stands but we have the fund to purchase another European airline outright and still be financially secure.

As far as that magazine article is concerned, it is either wrong or from a few years ago as we have not had a negative quarter since 1996. Do you happen to have a copy of it? I think the article may have said that we earned 25.8million less than last year which would be true, but still had a positve quarter.

Hope that helped!!

Regards,

Federico
Visca Barça!!
 
JOSEMEX
Topic Author
Posts: 1437
Joined: Mon Oct 04, 1999 11:44 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Wed Nov 26, 2003 4:38 am

Does anyone know if the current bilateral agreement between Mexico and Spain allow MX to codeshare on IB's MX), Mexico">MEX-MAD flight?
 
rojo
Posts: 2257
Joined: Tue Sep 05, 2000 6:08 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Wed Nov 26, 2003 6:21 am

No problems with codesharing, bilateral agreement with Spain will allow MX to codeshare on IB flights if both airlines sign an agreement.
 
fly727
Posts: 1752
Joined: Tue Jul 29, 2003 8:27 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Fri Nov 28, 2003 2:06 am

Iberia340600:

I'm on a business trip. I'll be back home on Sun29th. I'll promise to send you a copy of the scanned article and will share it with the forum. About its recency, it is from a month ago, I took it from one of MX's Executive Class lounges (never heard of that magazine before but it was quiet complete and professionally-looking)

RM  Smile
There are no stupid questions... just stupid people!
 
JAVOMD88
Posts: 285
Joined: Sun Aug 27, 2000 3:17 pm

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Fri Nov 28, 2003 8:27 am

IBERIA BUYING ANY AIRLINE=D I S A S T E R !!!!!!!!!!!!!!!!!!!!!

HISTORY HAS TOLD US THAT IBERIA IS NO GOOD BUYING ANY AIRLINE!

BYE
JAVO.
aeromexico.....the only true carrier of mexico
 
JOSEMEX
Topic Author
Posts: 1437
Joined: Mon Oct 04, 1999 11:44 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Sat Nov 29, 2003 2:12 am

FWIW, this morning on the "Negocios y Finanzas (Business & Finance )con Eduardo Ruíz Healy" radio show, one of the analysts was quoting someone from Cintra about the possibility of some european carriers purchasing a stake in either AM or MX. The three carriers he mentioned were LH, AF and IB.
 
LastBaron
Posts: 269
Joined: Tue Oct 21, 2003 9:55 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Sat Nov 29, 2003 3:27 am

JAVO is right... look at what they did to Aerolineas Argetinas...formerly the Rolls Royce in South America's skies, now the Yugo! AM and MX, resist IB investment ANY WAY YOU CAN!
 
jopavon
Posts: 282
Joined: Wed Nov 05, 2003 12:53 am

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Sat Nov 29, 2003 4:47 am

If LH gets part of MX, then they will get to stay in *A.
 
ghost77
Posts: 4461
Joined: Wed Mar 01, 2000 2:07 pm

RE: RUMOR: Iberia To Acquire Stake In Mexicana?

Sat Nov 29, 2003 4:53 am

Huh!!! I would love to see LH investing on MX!!! Or BA with AM....!! IB with hmmm...... JR (Thu they have a very similiar livery).

Ricardo Morales - APM  Smile

Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!