ATW Daily News

Mexicana prepares for first European service

Friday November 21, 2008

Mexicana has been hit by the current industry downturn like many carriers, but it remains in "adequate" financial health and is focused on a long-term plan that includes oneworld entry and the launch of its first European services early next year, CEO Manuel Borja said yesterday at the ALTA Airline Leaders Forum in Cancun.

On Jan. 17, Mexicana will begin twice-weekly flights from Mexico City to London Gatwick aboard a 767-200ER leased from American Financial Group. The arrival of a second -200 the following month will allow it to double the frequency. The aircraft also will be used on a new five-times-weekly Sao Paulo Guarulhos service scheduled to start Dec. 10.

MX will begin serving Madrid from MEX in February with a daily A330-300 flight. It announced the lease of two aircraft from CIT Aerospace this week (ATWOnline, Nov. 18). The A330s are new and originally were destined for XL Airways, which shut down in September, and will be leased for 10 years each. Borja said the newly arriving 767s are on lease for four years each, while the terms on the carrier's two current 767-300ERs expire in 2010. MX "probably" will look to add A330s as it moves forward, as its narrowbody fleet is composed entirely of A320 family aircraft.

Asked by ATWOnline why MX is embarking on a historic transatlantic expansion in this economic environment, Borja joked that "I have asked this question several times." In reality, the timing was unplanned. The CEO said that MX has "a road map we have worked very hard in structuring" and that flights to GRU, LGW and MAD were on the agenda but unavailable owing to bilateral agreements or slot issues.

"At the beginning of this year, when we saw the opportunity, we started pushing these three fronts hoping one. . .would open at one moment, and then later the next one. Our surprise was that all the three fronts opened at the same time," he said, adding, "If you don't go forward when you have the opportunity, the opportunity isn't there anymore."

All three routes are underserved, he said. The GRU and LGW flights largely will cater to corporate customers, with a "small percentage" of leisure travelers, while MAD is "more of a mix." He conceded that MX will post a "small" loss in 2008 but expects a "neutral" 2009.

by Brian Straus

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