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).
In this post:
Mexico’s government is starting a new airline
In the coming months, Mexico’s government plans to launch an airline, which will be run by a military general. This week, the Mexican government spent $48 million 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 as hoped with airlines; interestingly the airport is also run by the military
- The airline plans to begin selling tickets in September 2023, and launch flights by December 2023
- The airline will begin service with 10 leased Boeing 737-800s, which will be delivered in September and October 2023
- 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 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 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
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?
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 at the press conference — the airline will exclusively fly 737-800s, yet the model aircraft 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.
What do you make of Mexicana being revived? What do you think the odds are the airline succeeds?
This man is so insane, just like his old neighbor to the north. I do not see it ending well. Just like the New Mexico City airport, and the new Maya train that is destroying the environment.
Loved the airline as a Kid, and it does make me happy its coming back. Hoping a private investment group takes over it, and makes it a competitor to AeroMexico.
Yo estoy muy contenta que vuelva Mexicana, que si el aeropuerto AIFA no ha tenido el exito que se esperaba?, como lo va a tener si las erolineas que hay como son muy pocos vuelos sus precios estan por las nubes, por eso me da mucho gusto que Mexicana sea parte del gobierno y que su sede sea en AIFA, el aeropuerto es muy moderno y hermoso, estoy anciosa de poder visitarlo de nuevo, y que mejor que con Mexicana.
"What’s the real motivation here?"
AMLO is ideologically motivated; he distrusts private ownership of anything of importance. In his mind, Mexican commercial aviation will not come into its own until there is a government owned airline. That it will have his fingerprints on it, and be based out of an airport that has his fingerprints on it, probably doesn't hurt.
Another populist scheme from that Mexican clown president. He wants flights to and from that useless new airport he built (which the international airlines have snubbed for being declared unsafe, except for a coule of third world South American airlines)
Most certainly has to do with utilizing the new airport. However whichever angle one supposes, why not offer incentives to Aeromexico or others to start ops? If to make employees 'whole', just pay them, or again, subsidize employment with existing private airlines for guaranteed time frames?
The ONLY angle which doesn't scream corruption is if any of the aforementioned is simply prohibited, full stop, by Mexican laws/regulations to pay owed wages and/or throwing an anchor...
Most certainly has to do with utilizing the new airport. However whichever angle one supposes, why not offer incentives to Aeromexico or others to start ops? If to make employees 'whole', just pay them, or again, subsidize employment with existing private airlines for guaranteed time frames?
The ONLY angle which doesn't scream corruption is if any of the aforementioned is simply prohibited, full stop, by Mexican laws/regulations to pay owed wages and/or throwing an anchor at the new airport .
I'm not well versed in Mexican laws / constitution, but highly doubt is that restrictive.
So then what's left? Either Mexico is preparing for some conflicts/war which requires airplanes for national security, OR few politicians and military generals are about to live the high life, and can finally afford a house in the Gables, or on the private islands of Miami Beach - plus a few of them will get their yachts in the Mediterranean.
Since governments can seize private businesses in case of wars or national security, there's no reason to resurrect Mexicana. So, follow the money, and men of this deal and what properties they add to their portfolio.
I flew Mexicana in 1993 from TPA - CUN on MD80. I loved it, and they were excellent. Perhaps someone just shared some hefty nostalgia, and it's purely childhood innocence? (Nah...)
Does the purchase come with the legacy OneWorld membership?
Why is the military involved with tourism and transport?
The military is involved in transport security all over Mexico on the roads and highways, there are plenty of countries in this era that grant monopolies to their military - I guess that's last been seen in the west in the colonial periods.
Infrastructure like this also gets subsidies because it's defense infrastructure in a lot of places, historically in the US as well. And many pilots get their training hours qualifying in the service.
...The military is involved in transport security all over Mexico on the roads and highways, there are plenty of countries in this era that grant monopolies to their military - I guess that's last been seen in the west in the colonial periods.
Infrastructure like this also gets subsidies because it's defense infrastructure in a lot of places, historically in the US as well. And many pilots get their training hours qualifying in the service.
Mexican warships actually tie off at piers adjacent to the Fonatur marinas all over Mexico. Their military is much more oriented toward civil defense and their personnel get a lot of soft skills. You really get to like them.
Goals: pay off the ex employees with claims; and get users of the new airport. Both earn votes.
Yup. The airport is the crux of the story. Nothing more, nothing less. The outstanding claims are a handy side effect though. The new airport can work based on various current market conditions, location, etc so this may be the jumpstart it needs. Time will tell.
AA's board thought a repeat-offending drunk driver was fit to be CEO for many years.
Happy to see Mexicana coming back but dont like the paint scheme. They should use the early 90s livery.