The Mexican government's decision to launch a military-run airline is aimed at offering affordable travel options to millions of countrymen. Currently, the domestic airline industry is dominated by a handful of private carriers, making it unaffordable for an average Mexican citizen. The new airline will focus on providing affordable travel to people who travel within the country to increase tourism and trade.
Mexicana de Aviacion was once Mexico's largest airline, but it filed for bankruptcy in 2010 and ceased operations soon after. Mexico's purchase of its brand for $48 million will allow the new airline to use Mexicana's slots at airports and its route network, which could help it establish itself quickly in the competitive domestic market. However, the new airline will need to navigate regulatory hurdles and fierce competition from established players like Aeromexico and Volaris.
The Military Connection: Mexico's new airline will be run by the country's military, a move that has raised questions and concerns about the involvement of the armed forces in a civilian industry. However, officials have stressed that the airline will operate independently from the military and will not be involved in any security-related activities. The military's involvement is seen as a way to save costs and leverage the expertise of the country's armed forces in logistics and operations.
The airline is expected to operate a dozen Boeing 737 model aircraft with a capacity of 180 passengers and whose tickets would be up to 20 percent lower than those offered by private airlines.
Mexicana de Aviacion was once Mexico's largest airline, but it filed for bankruptcy in 2010 and ceased operations soon after. Mexico's purchase of its brand for $48 million will allow the new airline to use Mexicana's slots at airports and its route network, which could help it establish itself quickly in the competitive domestic market. However, the new airline will need to navigate regulatory hurdles and fierce competition from established players like Aeromexico and Volaris.
The Military Connection: Mexico's new airline will be run by the country's military, a move that has raised questions and concerns about the involvement of the armed forces in a civilian industry. However, officials have stressed that the airline will operate independently from the military and will not be involved in any security-related activities. The military's involvement is seen as a way to save costs and leverage the expertise of the country's armed forces in logistics and operations.
The airline is expected to operate a dozen Boeing 737 model aircraft with a capacity of 180 passengers and whose tickets would be up to 20 percent lower than those offered by private airlines.
