miaami
Topic Author
Posts: 604
Joined: Thu Jul 12, 2007 2:27 am

OneWorld - Lack Of Airline Partner In Mexico

Sat May 25, 2013 3:24 pm

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?
 
EddieDude
Posts: 6169
Joined: Fri Nov 14, 2003 10:19 am

RE: OneWorld - Lack Of Airline Partner In Mexico

Sat May 25, 2013 3:50 pm

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-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
 
mhkansan
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RE: OneWorld - Lack Of Airline Partner In Mexico

Sat May 25, 2013 6:11 pm

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.
 
EddieDude
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Joined: Fri Nov 14, 2003 10:19 am

RE: OneWorld - Lack Of Airline Partner In Mexico

Sat May 25, 2013 11:38 pm

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-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
 
AR385
Posts: 6735
Joined: Fri Nov 07, 2003 8:25 am

RE: OneWorld - Lack Of Airline Partner In Mexico

Sun May 26, 2013 12:22 am

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.
 
BigGSFO
Posts: 2213
Joined: Sun Jun 12, 2005 5:27 am

RE: OneWorld - Lack Of Airline Partner In Mexico

Sun May 26, 2013 12:42 am

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?
 
AR385
Posts: 6735
Joined: Fri Nov 07, 2003 8:25 am

RE: OneWorld - Lack Of Airline Partner In Mexico

Sun May 26, 2013 12:53 am

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.
 
SCL767
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Joined: Sun Feb 26, 2006 6:25 am

RE: OneWorld - Lack Of Airline Partner In Mexico

Sun May 26, 2013 1:14 am

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
 
EddieDude
Posts: 6169
Joined: Fri Nov 14, 2003 10:19 am

RE: OneWorld - Lack Of Airline Partner In Mexico

Sun May 26, 2013 4:15 pm

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-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
 
AR385
Posts: 6735
Joined: Fri Nov 07, 2003 8:25 am

RE: OneWorld - Lack Of Airline Partner In Mexico

Sun May 26, 2013 7:17 pm

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.
 
LJ
Posts: 4103
Joined: Wed Nov 17, 1999 8:28 pm

RE: OneWorld - Lack Of Airline Partner In Mexico

Sun May 26, 2013 7:22 pm

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).
 
LJ
Posts: 4103
Joined: Wed Nov 17, 1999 8:28 pm

RE: OneWorld - Lack Of Airline Partner In Mexico

Sun May 26, 2013 7:23 pm

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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