GUY NORRIS / LOS ANGELES

Boeing 717s originally destined for the Mexican newcomer reallocated to AirTran Airways

Four Boeing 717s originally destined for Vuelamex, a start-up Mexican airline, will now be delivered on lease from Pembroke Capital to low-cost US carrier AirTran Airways following the Mexican civil aviation body's decision not to grant authority to operate (ATO) to the new airline.

The would-be no-frills carrier was set to take delivery of its first two Boeing 717s when the verdict was handed down late last month. The first two aircraft had been completed and painted for Vuelamex. These aircraft, plus another two going through final completion, will be diverted to AirTran, which has accelerated plans to grow its 717 fleet this year and next.

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Although there has been no explanation from the authority on its decision, the carrier was known to be facing significant bureaucratic and financial hurdles, including its reported ties to TAESA - the Mexican carrier that ceased operations in 2000. Incumbent airlines Aeromexico and Mexicana are also believed to have expressed concerns over Vuelamex's connections to TAESA, having raised similar issues over the concession last June of an ATO to another Mexican start-up Azteca Airlines.

Amid continuing delays with Vuelamex, leasing company Pembroke began marketing the 717s to other potential users including AirTran. The airline has 32 717s in service and will have around 50 by the end of 2002.

Given the ready availability of the Vuelamex aircraft, this build-up suggests a production rate of around 1.25 to 1.5 aircraft a month. Although Boeing achieved a rate of five a month in 2001 when it delivered 51 aircraft, it hopes to maintain last year's hard-won production efficiency at the much slower 2002 rate by going to a single shift.

Source: Flight International