Cintra, the Mexican government-owned airline holding company, has delayed privatising Aeromexico and Mexicana on the advice of financial consultant Merrill Lynch. The Mexican economy has been hindered by its close links with the USA, meaning "the short-term conditions are not favourable for the sale", says Cintra.
The company has reported a net loss of 99 million pesos ($9.9 million) for the third quarter, an improvement on its 233 million pesos loss in 2001. Operating profit rose almost 25% to 202 million pesos. Revenues from the two carriers, plus their regional and cargo subsidiaries, fell by 4%.
This contrasts with airline performance in the USA's northern neighbour, with Air Canada reporting 6% higher revenues for the quarter and a net income of C$125 million ($80 million), a C$1 billion improvement over the same period last year. Unlike most of its North American counterparts, Air Canada expects a full-year profit.
Air Canada chief executive Robert Milton attributes the return to profitability to a market segmentation strategy and increased focus on low-cost operations. The Tango low-fare, long-haul sub-brand makes up over 19% of mainline traffic. Operating costs for Tango and no-frills subsidiary Zip are 25% lower than for mainline flights, Milton says.
Source: Flight International