Low-cost carrier Interjet has signalled a thirst for kick-starting the airline consolidation process in Mexico with a failed attempt to acquire Aviacsa.
Toluca-based Interjet, which launched services just over two years ago, becoming one of the first of a wave of new low-cost carriers to enter the Mexican market, recently approached Aviacsa with a speculative offer but was rejected by the airline. "We are the third largest airline in Mexico and because of our position and cost structure, we are like the jewel in the crown for new airlines that are looking to fast grow their networks, to gain market share and to start flying from Mexico City Airport," says Aviacsa planning director Manuel Cung.
Privately-owned Aviacsa launched operations in 1990, long before the low-cost airline revolution reached the Mexican market. It operates an ageing fleet of Boeing 737-200/300s, whereas Interjet operates a modern fleet of Airbus A320s. But while their fleet and cost structures differ, Aviacsa is sitting on a bank of sought-after slots at congested Mexico City Airport.
Cung insists Mexico City-based Aviacsa is "not for sale", but says he understands why carriers are beginning to look towards consolidation as the market becomes increasingly difficult. "This year airlines will face several threats and will have to sort out many challenges, not only in the domestic market but also in the international market," he explains. "The economic slowdown and the strengthening of US migration laws are having a negative impact on passenger growth, but even more capacity from new entrants is expected, which means much more pressure on low fares and weaker yields."
Until now there have been differing views as to whether the Mexican market is over-saturated and in need of consolidation. While network carriers such as Aeromexico and Mexicana point to significant overcapacity and stress the need for consolidation, budget operators such as Volaris and VivaAeroBus believe there is plenty of room for low-cost carrier growth. Interjet's approach to Aviacsa could be a sign that those views are beginning to change.
Aviacsa is "not for sale" according to planning director Manuel Cung
Source: Airline Business