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Home  >  Mexicana • News  >  Will United Step in to Fill Void Left by Mexicana?
MexicanaNews

Will United Step in to Fill Void Left by Mexicana?

Matthew Klint Posted onAugust 29, 2010 4 Comments

Mexicana ceased flying (again) on Saturday and it is increasingly likely that the historic Mexican carrier will be joining the likes of PanAm and TWA in that great boneyard in the sky.

That gives other air carriers a chance to grow in Mexico and the merged Continental/United (now officially approved) is in a position to lead the charge. Mexicana leaves a particular void in Los Angeles, a United hub, and if United is willing to re-invest in Latin America and re-allocate equipment, I see a market for growth and profit. At the very least, I am looking for United to add one more flight to Mexico City each day from LAX and a flight to Guadalajara or Monterrey.

Of course Mexican authorities might not like the idea of middle class Mexican jobs being replaced by American jobs. New and additional routes would require government approval and I expect Mexico would hold out for at least a little while (assuming slots are limited) to see if some financing group or rich investment outfit swoops in to “save” Mexicana, perhaps rebranding it Mexicana Airways, as Olympic did in the wake of its restructuring.

And that won’t be easy, either. Tenedora K, an investment group, already tried to purchase the airline on the condition that 1,366 flight attendants would be laid off and all FA’s would take smaller severance payments. The government promptly rejected their plan.

It would not surprise me if United is busy at work already thinking about how they can capitalize on Mexicana’s demise. I wish them success and hope to soon report back on new Mexican and Latin American destinations on United.

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About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

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4 Comments

  1. Oscar Reply
    August 30, 2010 at 2:01 am

    Im sure United will be one of the big winners apart from national carriers. I also think AA will add some flights and AirCanada should add one flight from Vancouver to Mexico.

  2. Steve Reply
    August 30, 2010 at 7:36 am

    Matthew,
    Just wanted to say thanks for all of your blog posts. I visit this site a few times a day every day because of your excellent and frequent posts.

    Thanks again!

  3. Matthew Reply
    August 30, 2010 at 4:30 pm

    @Oscar: I should have mentioned that Aeromexico will probably be the biggest winner.

    @Steve: Thanks for your kind words.

  4. Matthew Reply
    September 21, 2010 at 8:48 pm

    Looks like UA will be ramping up service to MEX!

    http://www.flyertalk.com/forum/14725265-post1.html

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