Mexicana Making Comeback As Military-Run Airline

Mexicana Making Comeback As Military-Run Airline

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This has to be one of the strangest attempts to revive an airline brand that I’ve ever seen (and that’s saying a lot, because reviving an airline brand is rarely a successful endeavor). Nonetheless, this is really happening, and tickets are now on sale…

Mexico’s government is starting a new airline

Mexico’s government is launching an airline, and it’s being run by a military general. In early August 2023, the Mexican government spent $48 million USD to purchase the brand of Mexicana de Aviacion, which used to be Mexico’s major national carrier. The airline liquidated in 2010, after being privatized in 2005.

Mexican President Andres Manual Lopez Obrador is reviving this airline with the stated goal of offering low-cost options to travelers, and creating more jobs for Mexicans. That purchase price is going primarily to nearly 7,500 former Mexicana employees, who had claims against the airline for lost wages when it went out of business. The purchase of Mexicana also includes three buildings and a flight simulator.

So, what should we expect from the “new” Mexicana?

  • Mexicana will be based at Felipe Angeles International Airport (NLU), which is Mexico City’s new second airport, as it hasn’t gained as much traction with airlines as the government had hoped; interestingly the airport is also run by the military
  • The airline plans to launch flights as of early December 2023, and tickets are now on sale
  • The airline will begin service with 10 leased Boeing 737-800s, which are in the process of being delivered
  • The Boeing 737s will be in an all-economy configuration, each featuring 180 seats
  • The airline is promising “quality service at an affordable cost,” with tickets 18-20% cheaper than competitors
  • The airline will operate exclusively domestically, and initially intends to serve up to 20 destinations, including Cancun, Guadalajara, Oaxaca, Mérida, Los Cabos, Tijuana, Mazatlán, León, Hermosillo, Ciudad Juárez, Puerto Vallarta, and Monterrey
  • The government will give the airline ~$235 million USD in funding to launch operations
  • The Mexicana aircraft will feature the traditional Mexicana logo on the tail, but will otherwise be white and green, with red engines

You can visit Mexicana’s website here. Below is the carrier’s initial route map.

Mexicana route map

Rather unbelievably, flights are already on sale, and fares are quite reasonable.

Mexciana tickets are on sale

This has to be one of the fastest airline startups ever in terms of going from being announced to actually starting operations. Then again, I guess Mexicana doesn’t face the same issues as other airlines with getting government approval. 😉

Does this airline startup make any sense?

The Mexican government had been talking about launching this airline for some time, but I figured they wouldn’t actually follow through on this. It looks like it’s really happening, though, and it makes little sense to me.

The thing is, I can understand when a country without much air service decides to launch an airline, even if it’s not likely to make money. After all, air connectivity is important. However, in this case the government is simply launching a domestic airline that will compete with existing private companies, of which there are a decent number in Mexico.

It’s not often you see a government launch an airline in a country that has plenty of good air service. What’s the real motivation here? Is this just about making former Mexicana employees whole? Is this about bringing service to Mexico City’s new airport, which otherwise hasn’t performed as well as hoped?

The only logical explanation is that this is an attempt to increase traffic at Mexico City’s second airport. Not only will that happen directly with Mexicana being based there, but I imagine the government thinks other airlines will increasingly compete there as well.

In terms of maximizing the odds of the airline being profitable, do they really think a military general is the right person to run the airline? Like, I don’t want to be overly critical, but I’m not terribly impressed by the attention to detail shown so far — the airline will exclusively fly 737-800s, yet the model aircraft shown in the press conference is of a 737-300, plus the graphic contains a picture of a plane with four engines.

You know, people often ask me how I don’t get bored writing about airlines 365 days per year, for 15+ years running. Well, this is why. There’s never a dull moment in the airline industry. I mean, how can you not be fascinated by Mexico’s government launching an airline run by a military general, and being curious about how this unfolds?

Bottom line

Mexicana will be returning to the skies in late 2023, as the airline brand is being revived after being purchased by the government. Mexico has decided to bring back its former national airline, and it will initially fly domestically from Felipe Angeles Airport to destinations across Mexico. Tickets are now on sale, so this is really happening… wow.

What do you make of Mexicana being revived? What do you think the odds are the airline succeeds?

Conversations (17)
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  1. Pablo G. Guest

    Great article, it is weird to know that the military is behind a business like the airport, but the military has proven themselves as being organized and to execute very great things already in Mexico, so I think they're going to do an awesome job. PGS

  2. Pierre Diamond

    Are they coming back into Oneworld ? They never left formally.

  3. Zain Nensey Guest

    Pakistan international airlines did the same thing with mixed results. Most recently not working although the macroeconomics are the main driver behind that.

  4. Jerry Diamond

    AIFA could be a good connecting airport, and there certainly a lot of people in EdoMex that are nearer to AIFA than AICM. For a purely domestic airline, it might make sense, but AIFA isn't a good option if you actually want to go to Mexico City. For going places like Chetumal, Villahermosa, Tapachula where you need a domestic connection anyway, I'd definitely consider the new MX out of CJS.

  5. Ronbo Guest

    This kind of follows what some South American countries do.
    Example, LADE in Argentina (now defunct I believe), but those were established by the military to provide air service to small communities that do not have air service and to some military outposts.
    Why Mexicana is concentrating on main routes in competition with other airlines is very interesting but as one guest stated maybe it is to provide more routes and business at the new airport.

  6. XPL Diamond

    "What’s the real motivation here?"

    It's yet another ego project for Mexico's president.

    1. Jed Guest

      Correct. Also, for the guy who's built his political brand on "helping the poor" (by stealing from the non-poor, defunding basic services, etc), it looks great given that his party wants to stay in power at next year's election.

  7. Icarus Guest

    Why is the military involved with an airline ? The military has another purpose.

    1. Bernardo Ng Guest

      The military is involved in everything now. Even the police departments are now run by the military.

  8. RF Diamond

    It would be great to have a new airline launch this quickly in the U.S. I'd like to see competition in the market. Not entirely tax-payer funded though and certainly not lead by a general.

  9. VITOR SILVA Guest

    If only it'd step back into Star Alliance soon, for the nightmares of awful Aeromexico!

    1. DenB Diamond

      Mexicana was in oneworld, Aeromexico in Skyteam. No Mexican carrier was in StarAlliance

    2. Bernardo Ng Guest

      Mexicana was in star alliance from 2000-2004. And left when it decided not to renew a codeshare agreement with United. Then in 2009 it was sponsored by Iberia to join one world until it ceased operations in 2010.

    3. Mark Guest

      Mexicana first joined Star Alliance in 1999?...then left and joined One World

  10. NedsKid Diamond

    As far as driving traffic at the new Mexico City airport, I think you are definitely correct there. Will it spur competition there? Doubtful. I mean, how many airlines have flocked from RSW to Punta Gorda to compete against Allegiant or even half the places Ryanair fly to across Europe? There's very much such a thing as creating your own market and having it to yourself because nobody else wants it.

    1. Pierre Diamond

      There is no convenient ground link between Mexico City and the new airport. Just very low class buses and ONE better bus frequency per day. A rail link is announced but ground has apparently not been broken. Mexicana might as well provide better transportation and they might even make money on it.

  11. Greg Guest

    The decal flag isn't even stuck on straight on the model

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Icarus Guest

Why is the military involved with an airline ? The military has another purpose.

3
Jerry Diamond

AIFA could be a good connecting airport, and there certainly a lot of people in EdoMex that are nearer to AIFA than AICM. For a purely domestic airline, it might make sense, but AIFA isn't a good option if you actually want to go to Mexico City. For going places like Chetumal, Villahermosa, Tapachula where you need a domestic connection anyway, I'd definitely consider the new MX out of CJS.

1
Bernardo Ng Guest

The military is involved in everything now. Even the police departments are now run by the military.

1
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