This is surprising. B6 are doing well on their south american bases (BOG, CTG, MDE, UIO, GYE and LIM) even recently starting GYE-JFK. Markets which are all smaller than MEX and have a lot of competition (especially Colombia). I just think the DL/AM JV is a though competitor to deal with.
Too bad for MEX.
It's not just the JV but also all the ulcc. A lot of low cost competition.
Indeed. A lot of low-cost competition is present on Mexico-USA.
But that can also be said of Colombia-USA. B6 has ULCC competition (Spirit and Vivaair) on all of its routes to Colombia except for JFK-CTG. I guess the combination of ULCCs + the JV squeezed them out of Mexico as you stated. That leaves me to wonder, will that be the story when UA/AV/CM/AD form their JV? Is the B6 product just not competitive enough due to higher costs - having to compete with ULCC fares?
Kinda worrying for the macro picture of their LatAm operation in the coming years.
So B6 typically does terribly when it gets squeezed from the top and bottom and doesn't have a visible point of sale to get. That's how they got crushed on FLL-BWI/DTW/PIT. All markets where point of sale is dominated on the other side and they faced WN/DL on the top end and NK on the bottom. They clearly have higher cost than the likes of NK, so need higher fares to be viable. And if nobody is willing to pay higher fares to fly with them, they lose out.
For most of their JFK routes, they don't have this problem, since there is no lower cost competition than B6. It is however a huge problem on JFK-MEX. It's not able to get the same revenue as DL/AM JV nor does it have the lower cost of the Mexican ULCC in a market that's more toward Mexican point of sale. Even in markets where there is strong presence on the other side like JFK-ATL, they do ok because there is enough point of sale from New York side to make a reduced schedule work and there is no ULCC competition for the crowd that prefers JFK over LGA.
For MCO-MEX, they just don't have enough point of sale at MCO. A lot of their MCO routes are struggling due to lack of investment in the market.
FLL-MEX is another JFK situation where they are getting squeezed by both AM/DL and AA on the top end and ULCC on the bottom. They still chase mostly O&D at FLL, so not getting enough connections to make it work.