Tag Archives: MEX

AeroMexico announces a new route to Managua, Nicaragua

AeroMexico (Mexico City) has announced the beginning of its new service with six weekly flights between its Mexico City hub and Managua.

This is the sixth destination in Central America and its 16th in Latin America.

The new AeroMexico Connect route will be served with six weekly flights with 76-seat Embraer 170 aircraft.

Copyright Photo: Rurik Enriquez/AirlinersGallery.com. Embraer ERJ 170-100SU XA-ACP (msn 17000019) arrives in Mexico City.

AeroMexico aircraft slide show: AG Slide Show

AeroMexico Connect aircraft slide show:

AeroMexico to introduce the Boeing 787 on the Mexico City-Los Angeles route

AeroMexico (Mexico City) is planning to introduce the Boeing 787-8 on the Mexico City-Los Angeles route on April 5, 2015. The upgraded route will be operated four days a week.

Update: On March 10, 2015 AeroMexico issued this statement confirming this report:

AeroMexico announced that it will begin to operate four weekly flights between Mexico City and Los Angeles with its Boeing 787 Dreamliner as of April 5, 2015.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Set against stormy skies, Boeing 787-8 Dreamliner N965AM (msn 35307) arrives in London (Heathrow).

AeroMexico aircraft slide show: AG Slide Show

 

AeroMexico to add Managua, Nicaragua on December 10

AeroMexico (Mexico City) has announced it will connect Mexico City to Managua, Nicaragua, six times a week starting on December 10.

Managua will be AeroMexico’s 5th Central American destination and the 14th Latin American route served by the airline.

The six flights a week will be operated by an AeroMexico Connect (Aerolitoral) Embraer 170 aircraft, seating 76 passengers.

Copyright Photo: Rurik Enriquez/AirlinersGallery.com. Embraer ERJ 170-100SU XA-ACV (msn 17000046) in the SkyTeam livery completes its final approach to the Mexico City hub.

AeroMexico: AG Slide Show

AeroMexico Connect: AG Slide Show

Volaris to go public

Volaris (Mexico City) will become a publicly-owned company. The Mexican carrier has issued this statement:

Volaris has announced it has priced its initial public offering comprised of 61,992,540 Series A shares for the Mexican offering and 226,469,000 Ordinary Participation Certificates (CPOs) in the form on American Depositary Shares (ADSs) for the international offering at an initial offering price of Ps.15.51 per Series A share and U.S. $12.00 per ADS. Each ADS represents 10 CPOs and each CPO represents a financial interest in one Series A share of common stock of the Company. Shares are expected to begin trading on the Mexican Stock Exchange (BMV) and the New York Stock Exchange (NYSE), under the symbols “VOLAR” and “VLRS”, respectively.

Deutsche Bank Securities Inc., Morgan Stanley & Co. Incorporated and UBS Securities, LLC acted as international joint bookrunners; Santander Investment Securities Inc. and the before mentioned acted as joint local bookrunners. Santander, Evercore, Barclays Capital Inc., and Cowen and Company, LLC served as international co-managers; Evercore Casa de Bolsa, S.A. de C.V.and Barclays served as local co-managers.

Copyright Photo: Juan Carlos Guerra/AirlinersGallery.com. Airbus A319-133 XA-VOP (msn 4403) in the promotional Puebla livery departs from the Mexico City hub.

Volaris: AG Slide Show

 

Aeromar is coming to Austin, Texas

Aeromar (Transportes Aeromar S.A.) (Mexico City) is coming to Austin, Texas. The Mexican carrier will commence nonstop Mexico City-Austin nonstop flights on October 21 per the Austin Business Journal. The new route will be operated five days a week with Bombardier CRJ200 regional jets.

Aeromar (Mexico) logo-1

Copyright Photo: Juan Carlos Guerra/Airlinersgallery.com. Bombardier CRJ200 (CL-600-2B19) XA-UPA (msn 7545) arrives at the Mexico City hub.

Aeromar (Mexico): AG Slide Show

Sol del Paraguay’s first aircraft is painted

Copyright Photo: Andre Du-Pont/Mexico Air Spotters.

Sol del Paraguay (Asuncion) is a new airline in Paraguay. The carrier is getting ready to take delivery of its first aircraft, this ex-Mexicana Click Fokker F.28 Mk. 0100 XA-TCP (msn 11341). A second Fokker will be added in order to start regional operations in 2011.

Copyright Photo: Andre Du-Pont/Mexico Air Spotters. XA-TCP is pictured at Mexico City after repainting.

Mexicana: “financial and labor situation is no longer sustainable” (files for protection)

Compania Mexicana de Aviacion (CMA/Mexicana Airlines) (Mexico City, a subsidiary of Nuevo Grupo Aeronautico (NGA), informed the media and general public that the company’s financial and labor situation is no longer sustainable. Here is the full statement:

NGA’s CEO Manuel Borja called a press conference and gave several interviews informing the public of the situation CMA is facing and reassured passengers that it has not and will in no way affect the operations, flights or itineraries of MexicanaClick and MexicanaLink. Although they are also subsidiaries of NGA, these airlines operate under completely different business models; CMA is focused on the international market, while MexicanaClick and MexicanaLink cover the domestic market, said Borja.

The situation has forced CMA to make some minor adjustments to its international flight schedules.

Despite of investments of over US$300 million in credit lines and resources put up by NGA and its subsidiaries, MexicanaClick and MexicanaLink, CMA explained that its current financial situation is no longer tenable. Concerted efforts have been made over the last four and a half years to restructure costs, efforts that have translated into savings of some US$800 million as a direct result of investment in IT systems, new routes and more efficient aircraft, but have not been sufficient to offset its crew costs.

Although the airline’s operating costs excluding crew labor costs are 30% lower than the average of legacy airlines in the United States, these non competitive labor costs are the main reason why the company has continued to suffer losses, to the extent that it is now financially non-viable. According to company sources, CMA’s pilots earn 49% more than the average wage paid by legacy airlines in the United States and 185% more than the average pilots flying Airbus A320s for other Mexican low cost airlines like Volaris or Interjet. Likewise, Mexicana Airlines flight attendants earn 32% more than the U.S. average and 165% more than their Mexican counterparts employed by the same airlines.

Numbers confirm, that if the CMA’s collective contracts had been more competitive, instead of registering losses of US$350 million from 2007 to date, the company would have posted profits of US$350 million, illustrating that CMA does indeed have the potential to be a profitable, financially viable carrier.

However, in light of the current situation, CMA has presented its pilots’ and flight attendants’ unions with two alternatives.

The first is the option to enter into a new collective contract to secure the CMA’s long-term financial viability. This would imply accepting cuts of 41% and 39% in wages and fringe benefits for pilots and flight attendants, respectively. This alternative also calls for additional cost-cutting measures, including downsizing 40% of the airline’s pilots and flight attendants. On the upside, it incorporates a profit-sharing plan whereby the unions would get a percentage of any operating profits that exceed 5% of the company’s total revenues.

As a second alternative, stockholders have offered to sell CMA to its unions for the token sum of $1 peso, proving them convinced of the vital role these labor organizations will play in the future of the company. As the only entities capable of turning the situation around, CMA’s management have stated that it would be willing to transfer control of the airline to its unions. The transaction would require further and more detailed negotiations with the unions, but in broad terms would require NGA to assume liabilities of US$120 million in bank credit lines, while the unions would have the option of retaining a BANCOMEXT loan for US$80 million or transferring this credit line and its respective sureties to NGA. The unions would also be given a six-month permit for the use of the Mexicana Airlines brand name, among other measures designed to allow for a smooth transition.

In response to statements by representatives of the pilots union (ASPA) to the effect that both proposals outlined by CMA would be rejected, the company said that it is time to acknowledge reality, that the paradigm of commercial aviation has changed worldwide and that only airlines that operate at competitive costs can hope to survive and continue flying. CMA will continue to negotiate with its unions.

As a result, Mexicana filed for creditor protection on August 2 in both Mexico (Concurso Mercantil) and the USA (Chapter 15) after the company and the unions failed to agree on wage and staff cuts to keep the debt-ridden airline flying.

Copyright Photo: AirSpeed. Boeing 767-3P6 XA-MXE (msn 23764) of Mexicana arrives at the MEX base.

Mexicana Click paints ex-Midwest Airlines Boeing 717-2BL N928ME in Oneworld colors

Copyright Photo: Andre Du-Pont. N928ME is now flying out of MEX.

Mexicana Click (subsidiary of Mexicana) (Mexico City) has painted its ex-Midwest Airlines Boeing 717-2BL N928ME (msn 55194) in the 2009 Oneworld Alliance color scheme.

Mexicana introduces an Airbus A320 Oneworld logojet

Copyright Photo: Andre Du-Pont. Airbus A320-214 XA-MXK (msn 3304) is pictured on the ramp at Mexico City.

Mexicana (Mexico City) has introduced its first Airbus A320 Oneworld logojet. The airline use to have Star Alliance logojets when it was in that alliance.