LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

Mexican LCCs Blamed For Financial Woes Of Legacies

Sat Sep 01, 2007 7:48 am

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
 
Marcus
Posts: 1666
Joined: Fri Apr 20, 2001 5:08 am

RE: Mexican LCCs Blamed For Financial Woes Of Legacies

Sat Sep 01, 2007 8:08 am

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
 
XA744
Posts: 630
Joined: Sat Mar 13, 2004 11:40 am

RE: Mexican LCCs Blamed For Financial Woes Of Legacies

Sat Sep 01, 2007 8:53 am

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 !
 
civilav
Posts: 293
Joined: Sat Oct 16, 2004 8:51 am

RE: Mexican LCCs Blamed For Financial Woes Of Lega

Sat Sep 01, 2007 12:34 pm

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 !
 
XA744
Posts: 630
Joined: Sat Mar 13, 2004 11:40 am

RE: Mexican LCCs Blamed For Financial Woes Of Legacies

Sat Sep 01, 2007 2:36 pm

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 !
 
ghost77
Posts: 4461
Joined: Wed Mar 01, 2000 2:07 pm

RE: Mexican LCCs Blamed For Financial Woes Of Legacies

Sat Sep 01, 2007 3:09 pm

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!
 
Fly2HMO
Posts: 7207
Joined: Sat Jan 24, 2004 12:14 pm

RE: Mexican LCCs Blamed For Financial Woes Of Legacies

Sat Sep 01, 2007 3:20 pm

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.
 
MEA-707
Posts: 3666
Joined: Mon Nov 15, 1999 4:51 am

RE: Mexican LCCs Blamed For Financial Woes Of Legacies

Sat Sep 01, 2007 5:19 pm

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?
 
juventus
Posts: 2017
Joined: Tue Dec 07, 2004 11:12 pm

RE: Mexican LCCs Blamed For Financial Woes Of Legacies

Sun Sep 02, 2007 12:15 am

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.
 
SkyyMaster
Posts: 1082
Joined: Sun Feb 11, 2007 7:34 am

RE: Mexican LCCs Blamed For Financial Woes Of Legacies

Sun Sep 02, 2007 10:00 am

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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