MaverickM11
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Mexican LCC Scorecard

Mon Mar 26, 2007 2:03 pm

How are the new Mexican "LCCs" doing so far? It's tough to keep tabs on most of them since they don't file a schedule with OAG. Are they making money? Flying full? Expanding? Still taking all the planes they have on order? What's going on with Interjet, Avolar, Volaris, Alma, and anyone else I forgot? Are they expanding to the US or internationally any time soon?
E pur si muove -Galileo
 
juventus
Posts: 2017
Joined: Tue Dec 07, 2004 11:12 pm

RE: Mexican LCC Scorecard

Mon Mar 26, 2007 8:59 pm

Quoting MaverickM11 (Thread starter):
How are the new Mexican "LCCs" doing so far? It's tough to keep tabs on most of them since they don't file a schedule with OAG. Are they making money? Flying full? Expanding? Still taking all the planes they have on order? What's going on with Interjet, Avolar, Volaris, Alma, and anyone else I forgot? Are they expanding to the US or internationally any time soon?

Let's wait on the Mexican experts for better info. But I think:

-The top 3, Volaris, Interjet and Avolar are doing very well, taking airplanes, some expansion and turning a profit.

-ALMA and Vivaaerobus are doing fine/descent. ALMA just signed a lease for 5 more CRJs.

-Azteca has seen better days. Their financial troubles continue, they were about be evicted from MEX airport, where 80% of their flights originate. I don't know what came out of that.

-Aerocalifornia, I've done some research, can't find much about their situation.

I'm only speculating, a view from the surface.
 
MaverickM11
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RE: Mexican LCC Scorecard

Mon Mar 26, 2007 11:06 pm

Quoting Juventus (Reply 1):
-Azteca has seen better days. Their financial troubles continue, they were about be evicted from MEX airport, where 80% of their flights originate. I don't know what came out of that.

They pulled out of the US entirely recently I believe.

Quoting Juventus (Reply 1):
-The top 3, Volaris, Interjet and Avolar are doing very well, taking airplanes, some expansion and turning a profit.

Do they have good brand awareness among Mexicans?
E pur si muove -Galileo
 
juventus
Posts: 2017
Joined: Tue Dec 07, 2004 11:12 pm

RE: Mexican LCC Scorecard

Tue Mar 27, 2007 1:39 am

Quoting MaverickM11 (Reply 2):
Do they have good brand awareness among Mexicans?

Its growing for sure, specially in the bigger cities where they fly. You see adds and articles about them on TV and newspapers. In provincia (smaller states/towns), Mexicana and Aeromexico are the brand names people know. Aviacsa and Aerocalifornia are also very well known due to the time they've been in service. However the internet is changing that, more and more Mexicans are booking their travel via internet, like the US, so that balances things a little more. I remember during the 80s, even early 90s, we had to take a 30 minute bus ride to the Mexicana office, just to buy tickets. During those days in Morelia, people knew about AM, MX and a little airline called Aerocalifornia.

But yes, their awarness is growing, fast. ALMA just signed with worldspan to facilitate sales and information, the article also says they plan to increase their CRJ fleet to 20.

http://biz.yahoo.com/prnews/070326/clm015.html?.v=79

saludos
 
KLM685
Posts: 1506
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RE: Mexican LCC Scorecard

Tue Mar 27, 2007 2:54 am

Quoting MaverickM11 (Thread starter):
Are they making money? Flying full? Expanding? Still taking all the planes they have on order? What's going on with Interjet, Avolar, Volaris, Alma, and anyone else I forgot? Are they expanding to the US or internationally any time soon?

Interjet and Volaris are around their first succesfull year. Specially Volaris has seen a really good occupation factor in the past months. Their marketing is really aggresive as they try to keep their brand on people's mind ALL the time with lots of publicity and lots of ads in TV ( as they have the advantage of having a TV owner as a stock owner as well).

OTOH Interjet seems to be doing just fine and expanding, they have clearly gone second with Volaris as they don't have a stong strategy to win market and is more of a second option to everyone. But is the only one that seems to expand alot at the moment as they open new destinations more frequently that other LCC.

Fares are not really THAAT cheap as this fares only go out on a certain period or with a promotion, which is a strategy to keep people on standby all the time.


Alma, Viva and Avolar are doing fine as well though they have hubs on different cities so they don't "compete" in the level in which Volaris and Interjet do. They take out the same cheap fares once in a while.

Avolar seems to be doing great with their TIJ hub as they are trying to focus on pax that wants to cross the border to some US cities. Also the fact that they have a bus line that takes people to LAX, SAN, LAS, FAT, etc... seems to be helping them in creating an attractive alternative to flying directly to the US for people that wants to fly cheap.

So far they are all making money ( don't know about profit exactly) and their occupation factors seems to be around 70% in average.


The history with Azteca is different, I wouldn't put them as a real LCC. Their time in this world is about to finish as they do seem to be loosing against the LCC.

Cheers!

Alonso
KLM- The Best Airline in the World!
 
MaverickM11
Topic Author
Posts: 15456
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RE: Mexican LCC Scorecard

Tue Mar 27, 2007 6:17 am

Quoting Klm685 (Reply 4):
Their time in this world is about to finish as they do seem to be loosing against the LCC.

Well whaddya know...
http://yahoo.reuters.com/news/articl...56_N26233189&type=comktNews&rpc=44
E pur si muove -Galileo
 
rojo
Posts: 2266
Joined: Tue Sep 05, 2000 6:08 am

RE: Mexican LCC Scorecard

Tue Mar 27, 2007 6:29 am

Quoting MaverickM11 (Thread starter):
How are the new Mexican "LCCs" doing so far?

Don't know about the airlines, but us, passengers, are getting very good fares. This past weekend I paid US$150 all in for a MEX-SFO-MEX and the weekend before US$45 all in for a TLC-TIJ-TLC, so the blood bath is quite strong...

I also hold a ticket to Argentina MEX-EZE-MEX with AM for which I paid US$390 all in ...
 
ghost77
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RE: Mexican LCC Scorecard

Tue Mar 27, 2007 6:47 am

I was about to open a thread last week... but still we are in time... log on to:

www.avolar.com.mx

www.vivaaerobus.com.mx

www.volaris.com.mx

You are able to get fares going from 50USD r/t to 250USD r/t... low and good for what we used to pay... I'm flying Volaris to CUN, GDL and TIJ all legs for 50 USD with TAXES r/t from TLC... I'm flying Avolar on May and June from CVJ to TIJ, i paid for each, 35USD with Taxes included r/t!!! I got a ONE CENT PESOS fare... that's equall to ONE USD PENNY!!!!!!

Take into consideration that, the only TRUE LCC MODEL are:

AVOLAR AND VIVA AEROBUS

LOW FARES:

INTERJET, VOLARIS, CLICK BY MEXICANA, AEROCALIFORNIA, ALMA, AVIACSA

CHARTER OPERATORS:

ALADIA, MAGNICHARTERS, REPUBLIC AIR, NOVA AIR, GLOBAL AIR

FULL FRILLS CARRIERS:

MEXICANA, AEROMEXICO, AEROLITORAL, AEROMAR

Still, Mexico's DGAC/SCT haven't disclosed the stats of 2007, but it is said, Interjet flew 1.3M pax!!! Volaris claimed they did the same exact thing with over a million pax, and Viva Aerobus as well as Avolar are doing nice... Click by Mexicana is growing fast.. and I bet that the battle field will be a little better now that Líneas Aéreas Azteca is grounded for safety and financial reasons.

ASA Airports (government controlled airflields) rose in a 30% its passenger traffic last 2006.

It is said, last year, Mexico's aviation grew in a 10%, and it will continue steadily all the way to 2013 with 11 to 13% points each year.

I will later post the fleets of all Mexican carriers.

Richard
Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
 
MaverickM11
Topic Author
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RE: Mexican LCC Scorecard

Tue Mar 27, 2007 7:12 am

Quoting Ghost77 (Reply 7):
AVOLAR AND VIVA AEROBUS

It looks like Avolar is trying to capitalize on the cross border traffic. I guess they get you to Tijuana, and then charge you for a "crucero" to San Diego, Fresno, Santa Ana, etc and the pax save the difference they'd otherwise pay in taxes if they flew direct to the US.
E pur si muove -Galileo
 
juventus
Posts: 2017
Joined: Tue Dec 07, 2004 11:12 pm

RE: Mexican LCC Scorecard

Tue Mar 27, 2007 7:43 am

I like the fact that the LCCs are doing well and expanding. They will force MX and AM to expand internationally.

As far as Azteca, I feel sorry for their employees, I hope they find employment soon, who knows if the airline will fly again.
 
fly727
Posts: 1753
Joined: Tue Jul 29, 2003 8:27 am

RE: Mexican LCC Scorecard

Tue Mar 27, 2007 2:19 pm

Quoting Ghost77 (Reply 7):
I got a ONE CENT PESOS fare... that's equall to ONE USD PENNY!!!!!!

Wouldn't it be equal to 1/10th of a USD penny?

Just getting technical here, LOL!

RM  Smile
There are no stupid questions... just stupid people!
 
MaverickM11
Topic Author
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RE: Mexican LCC Scorecard

Tue Mar 27, 2007 11:47 pm

Quoting Juventus (Reply 9):
They will force MX and AM to expand internationally

What's more encouraging is that the Mexican government seems willing to let creative growth/destruction occur in the airline industry.
E pur si muove -Galileo
 
KLM685
Posts: 1506
Joined: Sat May 21, 2005 12:41 pm

RE: Mexican LCC Scorecard

Wed Mar 28, 2007 12:59 am

Quoting MaverickM11 (Reply 11):
What's more encouraging is that the Mexican government seems willing to let creative growth/destruction occur in the airline industry.

Well that's about the idea nowadays. But still AM is in an unfair position as it hasn't been out of the government arms.

Quoting Rojo (Reply 6):
I also hold a ticket to Argentina MEX-EZE-MEX with AM for which I paid US$390 all in ...

bitch...  Wink
KLM- The Best Airline in the World!
 
MaverickM11
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Posts: 15456
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RE: Mexican LCC Scorecard

Wed Mar 28, 2007 3:28 am

Quoting Klm685 (Reply 12):
But still AM is in an unfair position as it hasn't been out of the government arms.

I thought they just got privatized?

What about expansion plans to the US? Is there anything stopping the Mexican LCCs from flying to the US other than the bilateral?
E pur si muove -Galileo
 
KLM685
Posts: 1506
Joined: Sat May 21, 2005 12:41 pm

RE: Mexican LCC Scorecard

Wed Mar 28, 2007 7:02 am

Quoting MaverickM11 (Reply 13):
I thought they just got privatized?

Not at all, they are starting to restructure the company in order to sell it and privatize it. But as things are going, AM's privatization is far from real as no one would like to buy a company with big red numbers...

Quoting MaverickM11 (Reply 13):
Is there anything stopping the Mexican LCCs from flying to the US other than the bilateral?

Well the bilateral makes a first brake for a start, but OTOH flying to the US changes the LCC situation of the airline as their costs would be much higher and fares would be almost equal to that of the two legacies we have. The US-Mexican airspace is not as efficient and open as the EU skies which allow international low cost fly international.

Also the competition on the international routes is pretty much a blood bath all the time so I wouldn't imagine Volaris or Avolar competing directly with Delta, MX, CO, US, etc... you name it. Their product so far has been good ( and is focused only) on domestic air traffic as they intend to erase the use of bus in certain routes.

Someone correct me if I'm wrong but I believe Viva wants to start US routes sometime soon. A very risky proposal as they are not as established as an airline can be in order to venture into an adventure like that. Just imagine them competing with CO Express.


Cheers!
KLM- The Best Airline in the World!
 
rojo
Posts: 2266
Joined: Tue Sep 05, 2000 6:08 am

RE: Mexican LCC Scorecard

Wed Mar 28, 2007 7:33 am

Quoting Klm685 (Reply 12):
bitch...

Don't blame me, blame AM... mmm, well, MX for lowering the fares and AM retaliating and opening many spaces at this fare... after all it is a blood bath, jeje

Quoting KLM685 (Reply 14):
Someone correct me if I'm wrong but I believe Viva wants to start US routes sometime soon. A very risky proposal as they are not as established as an airline can be in order to venture into an adventure like that. Just imagine them competing with CO Express.

Viva is in the process of applying to the DOT and DGAC for rights to fly to the USA, but first they have to get certification from the FAA. I do see Viva successfully competing in the Mexico - US market and making a profit, since they will start flying to some airports in Texas and Arizona and their fares and cost structure will help them a lot. The secret will be to open one or two cities in the US which could become small hubs (multiple operations) and fly to hubs in Mexico (Viva will not be a hub and spoke airline, but they will have hubs like FR and U2 in Europe). By doing this, they could get the economies of scale they need to be profitable and face competition.
 
adriaticus
Posts: 989
Joined: Thu May 06, 2004 3:29 pm

RE: Mexican LCC Scorecard

Wed Mar 28, 2007 9:26 am

Quoting Juventus (Reply 1):
-Azteca has seen better days. Their financial troubles continue, they were about be evicted from MEX airport, where 80% of their flights originate. I don't know what came out of that.

-Aerocalifornia, I've done some research, can't find much about their situation

Azteca's operations were suspended by the SCT, the ministry of transportation. Aerocalifornia is operating again in a reduced mode; most of her fleet remains grounded, but she has apparently survivived the SCT's full suspension.

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juventus
Posts: 2017
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RE: Mexican LCC Scorecard

Wed Mar 28, 2007 11:25 am

Quoting Adriaticus (Reply 16):
Azteca's operations were suspended by the SCT, the ministry of transportation. Aerocalifornia is operating again in a reduced mode; most of her fleet remains grounded, but she has apparently survivived the SCT's full suspension.

__Ad.

Thanx. So the veridict is Azteca is pretty much done, and Aerocalifornia's situation is still very uncertain.
 
EddieDude
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RE: Mexican LCC Scorecard

Wed Mar 28, 2007 2:59 pm

Quoting Rojo (Reply 6):
This past weekend I paid US$150 all in for a MEX-SFO-MEX and the weekend before US$45 all in for a TLC-TIJ-TLC, so the blood bath is quite strong...

I also hold a ticket to Argentina MEX-EZE-MEX with AM for which I paid US$390 all in

I make Alonso's eloquent comment mine  Smile

No, seriously, good for you.

As for Interjet, there was an article online yesterday about their good performance at http://mx.invertia.com
I am sure it is still online. Seems they have exceeded their projected goals, will receive more aircraft this year and are in the process of opening more routes... including one international (still under consideration).
Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
 
juventus
Posts: 2017
Joined: Tue Dec 07, 2004 11:12 pm

RE: Mexican LCC Scorecard

Thu Mar 29, 2007 3:55 am

Quoting EddieDude (Reply 18):
including one international (still under consideration).

There was a rumor it was LAX, but the Los Angeles market is too congested with DL, UA, CO, AS, AM, and MX.

God please let it be SFO.....
 
orbis
Posts: 199
Joined: Mon Dec 29, 2003 2:15 pm

RE: Mexican LCC Scorecard

Thu Mar 29, 2007 7:52 am

Quoting Ghost77 (Reply 7):
Take into consideration that, the only TRUE LCC MODEL are:

AVOLAR AND VIVA AEROBUS

although "ocassionally" you can get fares on Avolar as low as $.01 MXP or as in my case $25 USD for a one way (plus another USD$25 in taxes) OAX-GDL flight. the truth is that the walk in fare for the same flight ranges from $100 to $120. So I still do not know where does the term LCC starts and ends. Full frills  liar   liar  airlines  laughing  are offering (TEMPORARILY) the same route for USD 99. (Premier miles included only for AM. MX gives non for this fares)

Quoting Juventus (Reply 9):
I like the fact that the LCCs are doing well and expanding. They will force MX and AM to expand internationally



AM is definetly doing its homework...what about MX and its long haul plans??????
we should live our lives as if we were really alive!!! H.M.
 
MaverickM11
Topic Author
Posts: 15456
Joined: Thu Apr 06, 2000 1:59 pm

RE: Mexican LCC Scorecard

Thu Mar 29, 2007 11:12 pm

Quoting Orbis (Reply 20):
what about MX and its long haul plans??????

For starters it would need long haul aircraft.
E pur si muove -Galileo

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