Printer Friendly

Airline sell-off blasted.

The Mexican Airline Pilots' Union (ASPA) has criticized the proposed sell-off of Mexico's two main airlines, asserting that the carriers' problems won't be resolved by the action, The Associated Press reported.

The airlines have been losing market value for more than 10 years.

ASPA sponsored a study that indicated Cintra--the holding company for the two carriers, AeroMexico and Mexicana--has lost 8.2 percent of domestic market share and 7.2 percent of international market share since 2000, the AP reported.

The study suggested "the market share was being lost to major U.S. airlines and domestic and foreign low-cost carriers."

Although the domestic market has grown significantly over the past decade, AeroMexico and Mexicana have seen passenger numbers drop by 3.4 million.


ASPA Secretary-General Jesus Ramirez said the airlines "require major

repositioning in the market to contend with bigger competitors." He also criticized insufficient use of charter flights, said the use of air freight in the country is negligible and price and cost problems must be addressed, the AP reported.
COPYRIGHT 2005 American Chamber of Commerce of Mexico A.C.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:NEW BUSINESS; Mexican Airline Pilots' Union
Publication:Business Mexico
Article Type:Brief Article
Geographic Code:1MEX
Date:Apr 1, 2005
Previous Article:Debt restructured.
Next Article:GlobeTel Communications Corp.

Related Articles
Ready for takeoff: the low-cost model comes to Mexico as the government prepares to get out of the airline business.
Company Watch August 2005.
Company Watch September 2005.
Airline Finance News - North America.
Airline Finance News - North America.
Airline Finance News - Europe.
Airline Finance News - North America.
Company Watch - Northwest Airlines.
Airline Finance News - North America.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters