Low Cost Carriers in Mexico: Growth Prospects and Concerns



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Code : COM0088

Year :
2005

Industry : Transportation

Region : Mexico

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Mexico's flagship air carriers are Mexicana and Aeromexico. Though the two airlines controlled 80% of the Mexican market, since 2000, due to the high prices they charged, they started losing market share to other domestic and US airlines.

In addition, many US low cost carriers entered the Mexican aviation market and popularised the concept of low cost air travel, which resulted in the rise in air passenger traffic in Mexico.

To benefit from this growth, several new companies and existing Mexican airlines, including Mexicana started their own low cost airlines. However owing to some concerns analysts are divided on the prospects of low cost carriers in Mexico.

Pedagogical Objectives:

  • To discuss the evolution of the Mexican airline industry over the decades, and the growth of low cost carriers in the country * To discuss the growth prospects and concerns for the low cost airlines in Mexico.

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    Keywords : Mexican airlines; Low cost carrier; Code-sharing agreement; Industry Analysis Case Study; Mexicana; Restructuring plan; Breakeven; Aeromexico; Crossair; Loss-making routes; Incompetent managers and poor decisions; Market share; Structural problems; Growth strategies; Mexican airline industry; United airlines

    Contents :
    Mexican Aviation Market - Background
    Low Cost Airlines in Mexico
    Growth Prospects and Concerns


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