Mexican regulator watchdog wants more airline competition

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Mexico's competition watchdog Comision Federal de Competencia (CFC) has called for improving the regulatory framework to incentivise more competition among airlines, despite rejecting a request from a parliamentary commission to investigate Aeromexico over alleged "monopolistic practices".

Eduardo Perez Motta, president of the CFC, said this week that "there are no elements to investigate alleged monopolistic practices of Aeromexico", explaining that Mexican regulation only allows investigations of this type if "competitors are actively displaced" by the market leader with anticompetitive behaviors.

Instead, he said that Mexico should improve its regulations in the sense of facilitating more competition.

"What we are seeing here is in reality the lack of clearly pro-competitive regulations," said Perez. "There is a lack of competition in the market and this it what causes concern among customers."

The permanent commission of the Mexican Congress asked the CFC to investigate Aeromexico earlier in January, a request to which Andres Conesa, president of the Skyteam member airline, declared his "availability to explain to the parliamentarians the situation of Aeromexico in the Mexican market".

Aeromexico is Mexico's only major network carrier after Mexicana's demise. However, in recent years low-cost carriers Interjet, Volaris and Vivaaerobus have increased their domestic market share significantly by picking up much of Mexicana's traffic.