The unfriendly skies. (New Business).Mexican airlines, like many around the world, were hit hard by the Sept. 11 terrorist attacks, which caused a several-day grounding of flights to the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and a marked increase in flight cancellations. U.S. destinations account for 50% of Mexicana's traffic and local airlines estimate that cancellations have averaged around 25% since the attacks. To help the struggling flagship carriers Aeromexico and Mexicana cope with cancellations, the government offered a 10% discount on jet fuel as part of a package presented in early October. Also in the package is a 10% discount on fees charged by the government to use Mexico's airspace, and a freeze on fees charged to airlines at government-run airports. Both airlines--controlled by holding company Cintra, which, in turn is majority-owned by the government--were feeling the effects of the economic slowdown before Sept. 11, posting operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of US$54 million for the first half of 2001. The Fox administration plans to sell the government's stake in the airlines, but many analysts say the medium-term effects of the attacks may be the unwillingness of U.S. carriers to participate in the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of Aeromexico and Mexicana. Meanwhile, Mexicana and Aeromexico have accused U.S. airlines of lowering tariffs below their costs for several U.S.-Mexico routes, and announced that they will ask the Communications and Transport Secretary (SCT Sacrococcygeal teratoma (SCT) A tumor occurring at the base of the fetus's tailbone. Mentioned in: Prenatal Surgery ) to intervene. Officials from the two airlines claim that because of their US$15 billion government bailout bailout The financial rescue of a faltering business or other organization. Government guarantees for loans made to Chrysler Corporation constituted a bailout. , U.S. airlines now have the necessary liquidity to charge extremely low prices on international airfares. "Mexicana cannot compete under unequal conditions in routes between Mexico and the United States Relations between the United States and Mexico are among the most important and complex that each nation maintains. They are shaped by a mixture of mutual interests, shared problems, and growing interdependence. , against airlines that have just received strong financial support and are now using that to sell tickets below cost," Fernando Flores Carlos Fernando Flores Labra (born January 9, 1943) is a Chilean engineer, philosopher, entrepreneur and politician. He is a former cabinet minister of president Salvador Allende and is currently senator for the Tarapacá Region. Biography Flores was born in Talca, Chile. , general director of Mexicana de Aviacion, told local press. In mid-October, U.S. airline Delta was charging more than 30% less than Mexicana and Aeromexico on round trips for popular routes such as Mexico-Los Angeles and Mexico-New York. |
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