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KrustyTheKlown
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Mexico's Interjet is seeking investment from a foreign airline.

Mon Apr 16, 2018 1:56 am

Translated article from Forbes Mexico

TL;DR: Interjet is looking for investors to solve its debt problems and could close a deal with a foreign airline by year's end.

Interjet is a LCC and Mexico's 3rd largest airline behind ULCC Volaris and Skyteam's Aeromexico.

Oneworld and Star Alliance currently lack a local partner in Mexico but Star Alliance's member Avianca is reportedly looking to transform Aeromar (a regional airline operating turboprops) into Avianca Mexico. Volaris is part-owned by Indigo Partners and so it's unlikely that it will look for a partnership with Oneworld or Star alliance.

Interjet already has codeshare agreements with American, Iberia and LATAM so a partneship with a Oneworld member could make sense.
 
santi319
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Mon Apr 16, 2018 1:59 am

Latam Mexico comming soon? In all reality they are very much in debt but otherwise would be a wise idea.
 
jordanh
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Mon Apr 16, 2018 4:41 am

santi319 wrote:
Latam Mexico comming soon? In all reality they are very much in debt but otherwise would be a wise idea.

No; right now the focus is on balancing the hubs and fleets for the existing countries. The Argentina rapidly-growing base is taking up a lot of time and effort, with LA-BR planes coming to help on ARG-Brazil and ARG-Peru flights, and there are no plans to expand northward.
 
RCS763AV
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Mon Apr 16, 2018 5:09 am

I smell a takeover by Synergy. They have made statements of wanting to make further investments and Aeromar+Interjet would nicely round up the operation and garner them the required volume to be a relevant player. The common A32S fleet also helps.
 
LupineChemist
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Mon Apr 16, 2018 5:26 am

AA could go in to try and counter the DL/AM deal.

I'm wondering if IB (alone, not as IAG) would be interested?
 
Tailwinds13
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Mon Apr 16, 2018 2:54 pm

All the signs point to a Oneworld member investment though it’s anyone’s game at this point. The Mexican market is stable and growing much like other Latin American markets. The new MEX airport will definitely help Interjet, but it needs to solve its debt immediately before facing further trouble. Interjet has huge potential to go head to head with AM. Their product is good for a LCC.
 
ahj2000
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Mon Apr 16, 2018 3:22 pm

I’d love to see American come in with a Delta move and take a large share. Or maybe go 24.5/24.5 with LA or IB? A JV with AA would help some of 4O’s floundering transborder routes, and allow AA to expand in Mexico. If LA got in on it, it would be huge for Mexico-SA travel.
-Andrés Juánez
 
dodgers702
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Mon Apr 16, 2018 4:19 pm

Also was reading a few days ago that Interjet is looking to form an alliance with Hainan Airlines by 2018 second half. Will try and look for link.
 
slickvik
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Tue Apr 17, 2018 8:20 pm

This is a good airline except when things go wrong. I flew it once and the plane showed up 3 hours late without any rhyme or reason as to why. That being said the plane itself was great, very comfortable and friendly stewardesses (who all happened to be young and attractive).
 
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OzarkD9S
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Tue Apr 17, 2018 8:36 pm

ahj2000 wrote:

I’d love to see American come in with a Delta move and take a large share. Or maybe go 24.5/24.5 with LA or IB? A JV with AA would help some of 4O’s floundering transborder routes, and allow AA to expand in Mexico. If LA got in on it, it would be huge for Mexico-SA travel.


This opportunity does have AA/LATAM/oneworld written all over it.
"True, I talk of dreams,
Which are the children of an idle brain." -Mercutio
 
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LAXintl
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Tue Apr 17, 2018 9:04 pm

Interjet needs to figure outs its business model.

Flying single class yet low density A320s with mere 150 seats while earning LCC income is not a long term solution.

Imo they either must become a proper LCC or chose to become more a full service carrier offering multiple classes and try to earn the required revenue premium.

Certainly having two abortive IPOs also does not help the case and creates doubt in investor minds as to owners long-term commitment to the airline.
From the desert to the sea, to all of Southern California
 
winGl3t
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Tue Apr 17, 2018 10:30 pm

LAXintl wrote:
Interjet needs to figure outs its business model.

Flying single class yet low density A320s with mere 150 seats while earning LCC income is not a long term solution.

Imo they either must become a proper LCC or chose to become more a full service carrier offering multiple classes and try to earn the required revenue premium.

Certainly having two abortive IPOs also does not help the case and creates doubt in investor minds as to owners long-term commitment to the airline.


Can a LCC configurated A320 (~180 seats) operate without restrictions out of MEX?
 
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Polot
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Tue Apr 17, 2018 10:45 pm

winGl3t wrote:
LAXintl wrote:
Interjet needs to figure outs its business model.

Flying single class yet low density A320s with mere 150 seats while earning LCC income is not a long term solution.

Imo they either must become a proper LCC or chose to become more a full service carrier offering multiple classes and try to earn the required revenue premium.

Certainly having two abortive IPOs also does not help the case and creates doubt in investor minds as to owners long-term commitment to the airline.


Can a LCC configurated A320 (~180 seats) operate without restrictions out of MEX?

Volaris (174 seats on the A320, 186 on NEO) seems to have no issues.
 
ahj2000
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Wed Apr 18, 2018 4:07 am

LAXintl wrote:
Interjet needs to figure outs its business model.

Flying single class yet low density A320s with mere 150 seats while earning LCC income is not a long term solution.

Imo they either must become a proper LCC or chose to become more a full service carrier offering multiple classes and try to earn the required revenue premium.

Certainly having two abortive IPOs also does not help the case and creates doubt in investor minds as to owners long-term commitment to the airline.

Dropping to 31/32” in the back with a front section of 34/35” would help. They want to be a JetBlue but don’t quite have the higher-cost leisure travel section mastered IMO.
-Andrés Juánez
 
moa999
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Wed Apr 18, 2018 4:22 am

A worry that they can't make money even after the collapse of Mexicana.
 
slickvik
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Fri Jun 01, 2018 5:35 am

Something odd is going on flights were announced from BJX to IAH and SAT with great fanfare and now they’ve quietly disappeared from booking outlets
 
jetero
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Fri Jun 01, 2018 5:24 pm

slickvik wrote:
Something odd is going on flights were announced from BJX to IAH and SAT with great fanfare and now they’ve quietly disappeared from booking outlets


Great fanfare? I think that's just a tad bit of an overstatement.

They do have problems with aircraft shortages related to the SSJ, not that either was a recipe for success.

Here's hoping for Synergy and synergies with UA's Mexico operations.
 
slickvik
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Wed Jun 06, 2018 4:08 pm

jetero wrote:
slickvik wrote:
Something odd is going on flights were announced from BJX to IAH and SAT with great fanfare and now they’ve quietly disappeared from booking outlets


Great fanfare? I think that's just a tad bit of an overstatement.

They do have problems with aircraft shortages related to the SSJ, not that either was a recipe for success.

Here's hoping for Synergy and synergies with UA's Mexico operations.


There was a big press conference in BJX and lots of press. I almost booked a flight but used miles to take UA instead. Looks like I did the right thing. Unfortunate for those who had plans to go and cheap fares.
 
LH658
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Wed Jun 06, 2018 4:35 pm

Where Etihad at Lol.
 
flyguy84
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Wed Jun 06, 2018 4:39 pm

Synergy makes a lot of sense... they could easily combine AeroMar and Interjet into Avianca Mexico.
SFO
 
Kadish
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Wed Jun 06, 2018 6:44 pm

LupineChemist wrote:
AA could go in to try and counter the DL/AM deal.

I'm wondering if IB (alone, not as IAG) would be interested?

My first thought was IB..
 
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Polot
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Wed Jun 06, 2018 9:34 pm

Kadish wrote:
LupineChemist wrote:
AA could go in to try and counter the DL/AM deal.

I'm wondering if IB (alone, not as IAG) would be interested?

My first thought was IB..

IB is 100% owned by IAG. They can’t go and invest in another airline without IAG’s blessing. Why would IAG do the ownership via IB and not just directly?
 
LupineChemist
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Thu Jun 07, 2018 3:16 am

Polot wrote:
Kadish wrote:
LupineChemist wrote:
AA could go in to try and counter the DL/AM deal.

I'm wondering if IB (alone, not as IAG) would be interested?

My first thought was IB..

IB is 100% owned by IAG. They can’t go and invest in another airline without IAG’s blessing. Why would IAG do the ownership via IB and not just directly?


IAG is generally pretty hands-off with each airline and delegates business decisions to each business unit. IB might think it's more strategic to get more domestic Mexican feed to them in MEX (and JV partners in US gateways). Though with IAG's blessing, it could be a bigger play into Latin America, combined with the Norwegian Argentine AOC if they end up with them. I could see them trying to make Interjet a Latin American wide LCC (Though I think Volaris would be more successful trying that)

BA's investment in Openskies is a pretty good example. Though I have to say, I don't understand exactly what happened there with that AOC going to Level.
 
Byrdluvs747
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Thu Jun 07, 2018 11:08 am

LupineChemist wrote:
AA could go in to try and counter the DL/AM deal.


Don't hold your breath waiting for AA. They have a horrible track record in strategic thinking. Parker plays checkers while DL plays chess.
The 747: The hands who designed it were guided by god.
 
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Polot
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Thu Jun 07, 2018 12:02 pm

LupineChemist wrote:
Polot wrote:
Kadish wrote:
My first thought was IB..

IB is 100% owned by IAG. They can’t go and invest in another airline without IAG’s blessing. Why would IAG do the ownership via IB and not just directly?


IAG is generally pretty hands-off with each airline and delegates business decisions to each business unit. IB might think it's more strategic to get more domestic Mexican feed to them in MEX (and JV partners in US gateways). Though with IAG's blessing, it could be a bigger play into Latin America, combined with the Norwegian Argentine AOC if they end up with them. I could see them trying to make Interjet a Latin American wide LCC (Though I think Volaris would be more successful trying that)

BA's investment in Openskies is a pretty good example. Though I have to say, I don't understand exactly what happened there with that AOC going to Level.

Being hands off on the operations of the airline is completely different than being hands off on how they spend their money on strategic investments. Those have to be cleared by papa IAG and it is not obvious why IAG just wouldn’t do the investment directly instead of through IB. BA/Openskies predates the existence of IAG, it is not a good example. Acquisitions or stakes in new airlines (eg EI, stake in DY) since IAG has been from IAG directly, not through BA or IB.
 
slickvik
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Re: Mexico's Interjet is seeking investment from a foreign airline.

Mon Jun 11, 2018 11:22 pm

Flights to IAH from BJX tentatively will begin in fall depending on aircraft situation

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