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AMX-2005-01 2004 STATS
AMX-2011-08 - DELTA INVESTMENT
AMX-2013-08 - 1ST 787-8
AMX-2013-09 - 787 PROGRESS
AMX-2016-10 - 1st 787-9-A.jpg
AMX-2016-10 - 1st 787-9-B.jpg
AMX-2016-10 - 787 Social Space-A.jpg
AMX-2016-10 - 787 Social Space-B.jpg
AMX-2016-10 - 787 Social Space-C.jpg
AMX-2018-06 San Jose to MEX.jpg
AMX-2018-07 ACCDT E190.jpg
AMX-Cabin Attendant 2018-11.jpg
AMX-VISIT MEXICO - CAUTION-2013-05
FORMED IN 1934. FORMERLY AERONAVES DE MEXICO. DOMESTIC, REGIONAL & INTERNATIONAL, SCHEDULED, PASSENGER & CARGO, JET AIRPLANE SERVICES.
PASEO DE LA REFORMA 445-60
06500 MEXICO CITY, (DISTRICT FEDERAL), MEXICO
The population of Mexico City is 20 million.
Mexico was established in 1821, covers an area of 1,958,201 sq kms, its population is 101 million, its capital city is Mexico City, and its official language is Spanish.
JULY 1995: 1ST 6 MONTHS = -$10.2 MILLION (-$168 MILLION) (NET LOSS).
NOVEMBER 1995: TO CODE SHARE WITH AIR FRANCE (AFA), ON MEXICO CITY - PARIS.
JANUARY 1996: 1995 = -$22.76 MILLION (-$451.32 MILLION): -18.9% (RPK) PASSENGER TRAFFIC, -12% (ASK) CAPACITY, 59.8% LF LOAD FACTOR (-4.7). 4TH QUARTER = -$17.11 MILLION (-$352.65 MILLION).
APRIL 1996: MEXICO CITY TO PERU (757, 175 PAX, 2 CLASS), PART OF "WINGS OF AMERICA" MARKETING ALLIANCE WITH MEXICANA (CMA) & AEROPERU (PER).
RETURNED 2 MD-82'S TO LESSOR AT END OF 1995.
MAY 1996: OUTSOURCING DEVELOPMENT OF COMPUTER EQUIPMENT TO (EDS).
1 767-200ER (24716), EX-LANCHILE (LAN), AWAS (AWW) LEASED. 1 DC-9-31 (47006).
AUGUST 1996: SWAPPED 2ND 767-300 FOR 767-200, EX-LANCHILE (LAN).
SEPTEMBER 1996: MAINTENANCE CONTRACT FOR DUTCH CARIBBEAN AIRLINES (ALM) 2 MD-82'S (49661, 49123) "C" MAINTENANCE CHECKS IN LATE 1996.
OCTOBER 1996: CODE SHARE WITH DELTA AIRLINES (DAL) TO AUSTIN, TEXAS AND WASHINGTON DC.
NOVEMBER 1996: APPLIED TO FLY CULIACAN, MEXICO CITY, LOS ANGELES (LAX) (MD-80).
2 ORDERS MD-81'S.
DECEMBER 1996: 1 MD-87, EX-VALUJET (VAU). PLANS FOR 2ND, TO REPLACE A DC-9. UPGRADED 767 SEATS, TO SAME AS THOSE USED IN 747-400.
JANUARY 1997: CODE SHARE WITH UNITED AIRLINES (UAL), MIAMI (MIA) TO MEXICO CITY. CODE SHARE WITH DELTA AIRLINES (DAL), LOS ANGELES (LAX) TO GUADALAJARA & MEXICO CITY, ALSO NEW YORK (JFK), ATLANTA, & DALLAS/FORT WORTH (DFW). CODE SHARE WITH MEXICANA (CMA), (MIA) - COZUMEL.
1996 = 5.52 BILLION (RPK) PASSENGER TRAFFIC (#47 HIGHEST IN THE WORLD) (+4.3%), 5,319 EMPLOYEES.
FEBRUARY 1997: 2ND MD-87, EX-VALUJET (VAU). UPGRADES 767 FIRST "F" CLASS WITH NEW 747-400 TYPE SEATING. 1 MD-82 (JT8D-217), EX-AERO LLOYD (ACH).
MARCH 1997: RAUL SIFUENTES, VP, 3RD PARTY MAINTENANCE, TO PERU, TO SET UP AEROPERU (PER) MAINTENANCE PROGRAM, & COORDINATE HEAVY CHECKS.
APRIL 1997: 5,516 EMPLOYEES (INCLUDING 1,753 FLIGHT CREW (FC).
1996 = +$303M (NET PROFIT).
+1 MD-80, IN 5/97, & LOOKING FOR MORE.
MAY 1997: 1ST Q, CINTRA PROFITS = +3.3%: +6% PASSENGERS (PAX).
JUNE 1997: TO SAN DIEGO.
2 MD-83 (49643; 49658), EX-ALASKA AIRLINES (ASA).
AUGUST 1997: CINTRA HOLDING COMPANY, WHICH CONTROLS AEROMEXICO (AMX) & MEXICANA (CMA), REPORTS 2ND QUARTER = +29.7% PROFITS. 1ST 6 MONTHS = -26.8% TO 952 MILLION PESOS (1.3 BILLION PESOS).
1 DC-9-32 (48151) SOLD TO (AEX).
SEPTEMBER 1997: IXTAPA TO LOS ANGELES (LAX).
1 MD-83 (JT8D-219), EX-(MDF).
OCTOBER 1997: 5,516 EMPLOYEES.
MONTERREY - DALLAS.
PABLO LOPEZ, VP ENGINEERING, SWAPPED WITH AGUSTIN ALMONTE, VP FLIGHT OPERATIONS. MARCOS FRAGASO, VP LINE MAINTENANCE.
84 180 MINUTES 767 EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) FLIGHTS/MONTH OVER NORTH ATLANTIC.
1 MD-83 (49659), EX-AEROPOSTAL (LAV), 10 YEAR LEASED.
INCDT: DC-9-32 (47594) DESTROYED & WRITTEN OFF (W/O) IN TAIL STRIKE LANDING AT MEXICO CITY = 72 OK.
NOVEMBER 1997: 1 767, SCANDINAVIAN AIRLINES (SAS) LEASED.
DECEMBER 1997: 1 MD-87 (49724), EX-(GAR), CIT (TCI) 5 YEAR LEASED.
JANUARY 1998: CINTRA NOW OWNS 70% OF AEROPERU (PER).
ONE DC-10-15 (CF6-50C2F) PARKED.
MARCH 1998: PLANS FOR CAT II & III CAPABILITY FOR 767, TO SANTIAGO & BUENOS AIRES.
TO TAKE OVER OPERATIONS OF 757 LEASED TO AEROPERU (PER). 1 ORDER (1998-11) 767-300ER (PW4062) (27618), (ILF) 77 MONTH LEASED.
APRIL 1998: 5,516 EMPLOYEES (INCLUDING 1,753 FLIGHT CREW (FC)).
LOOKING AT ABS HUSHKITS, FOR 6 - 8 MD-80'S.
DC-9-32 (XA-JEB) USED TO BE THE FORMER PLAYBOY "BLACK BUNNY." "D" MAINTENANCE CHECK ON DC-10-15 (CF6-50C2F) (48275), PRIOR TO DELIVERY, IN 1998-06, TO SKYJET (SKJ), (IAL) LEASED.
MAY 1998: COMPLETES "C" MAINTENANCE CHECK ON AMERICA WEST AIRLINES (AMW) 757.
1 757 (25592) TO BE LEASED TO AEROPERU (PER).
JUNE 1998: CODE SHARE WITH AUSTRIAN AIRLINES (AUL) TO VIENNA, VIA NEW YORK.
JULY 1998: 1997 = 6.23 BILLION (RPM) TRAFFIC (+12.9%).
1 MD-83, ALLEGRO (AEG) LEASED UNTIL DECEMBER 1998. +2 ORDERS (1998-08) MD-82'S, EX-FAR EASTERN AIR TRANSPORT (FAT).
AUGUST 1998: FORMER CEO, GERARDO DE PREVOISIN IS ARRESTED IN SWITZERLAND, TO BE EXTRADITED TO MEXICO FOR CHARGES OF EMBEZZLING $37.5 MILLION FROM AEROMEXICO (AMX).
MD-82 (53119), EX-FAR EASTERN AIR TRANSPORT (FAT).
SEPTEMBER 1998: MONTERREY - ATLANTA.
MD-82 (53066), EX-FAR EASTERN AIR TRANSPORT (FAT). 1 MD-83 (49848), ALLEGRO (AEG) WET-LEASED FOR 6 MONTHS, FOR OPERATIONS BY AEROCARIBE (AEB). PLANS TO DOUBLE ITS FLEET TO 120 AIRPLANES, IN 5 YEARS, AT COST OF $700 MILLION.
OCTOBER 1998: FY 1997 = +$95 MILLION. 1ST 6 MONTHS: 5.1 BILLION (RPK) TRAFFIC (+8.9%), 64.3% LF, 48.6 MILLION (FTK) FREIGHT (+18.6%), 3.7 MILLION PASSENGERS (PAX) (+5.2%). 1ST 9 MONTHS: +8.5% (RPK), +6.3% (ASK).
767-3Q8ER (PW4062), (ILF) LEASED.
CELEBRATES 25 YEARS ANNIVERSARY OF 1ST ILFC (ILF) LEASE, A DC-8-51.
VILLAHERMOSA - HOUSTON.
DECEMBER 1998: 1 757-2Q8 (836-29380), (ILF), EX-MEXICANA (CMA).
JANUARY 1999: 1998 = 7.8 MILLION PASSENGERS (PAX) (+3.9%); 93.8 MILLION (FTK) FREIGHT (+3.9%).
MARCH 1999: CINTRA, PARENT GROUP OVER AEROMEXICO (AMX) AMD MEXICANA (CMA) 4TH QUARTER = +$68.6 MILLION (-$264,000). 1998 = +$46.6 MILLION (-80%): MAINTENANCE COSTS +19.2%; FUEL COSTS -9.6%; 2.67 BILLION (RPK), +6.3% (ASK), 7.5 MILLION PASSENGERS (PAX).
(AMX) IS NOW 10 YEARS OLD.
END OF 1999 = 6,431 EMPLOYEES, 63 AIRPLANES.
APRIL 1999: (http://www.wotw.com/aeromexico). SITA: MEXWBAM.
757-23A (25490, N53AW), ANSETT (AWW) LEASED.
MAY 1999: 6,467 EMPLOYEES.
PLANS TO UPGRADE ENGINES: 757 (PW2037 TO 2040), 3 767'S (PW4060 TO 4062), & 7 MD-82'S (JT8D-217A TO -219).
767-3YO RETURNED TO (GECAS) (GEH), EX-SCANDINAVIAN AIRLINES (SAS). WILL BE REPLACED BY ANOTHER 767-283, EX-TRANSBRASIL (TBL), IN 1999-06.
JUNE 1999: ARTURO BARAHONA, (CEO). ALFONSO PASQUEL, CHAIRMAN & PRESIDENT. FORMER CHAIRMAN, GERARDO DE PREVOISM, SHOULD BE EXTRADITED FROM SWITZERLAND TO MEXICO TO FACE CHARGES, HE EMBEZZLED $38 MILLION FROM AEROMEXICO (AMX).
CINTRA PLANS TO PRIVATIZE (AMX), & MEXICANA (CMA), POSSIBLY AS EARLY AS 1999-09.
747-300, 14 MONTH LEASED, FOR SERVICE TO ROME. CODE SHARE WITH DELTA AIRLINES (DAL), TOKYO NARITA - LOS ANGELES (LAX), WITH CONNECTING SERVICE TO MEXICO CITY, GUADALAJARA, LEON, AND PUERTO VALLARTA.
1998 = 6.66 BILLION (RPM) TRAFFIC (+6.8%), 701.1 MILLION (FTM) FREIGHT (+6.7%).
1998 TOP WORLD AIRLINES PASSENGER TRAFFIC (RPM) (BILLION):
40 EAD 8.07; 41 AIN 7.68; 42 ELA 7.55; 43 GIA 7.09; 44 PIA 6.82; 45 AMX 6.66; 46 FIN 6.66; 47 GUL 6.59; 48 ARG 6.58; 49 PAL 6.50; 50 CMA 6.41.
JULY 1999: 1ST 6 MONTHS = 5.69 BILLION (RPK) TRAFFIC (+11.8%), +12.3% (ASK) CAPACITY.
757-23A (PW2037) (25490), EX-AEROPERU (PER), (AWW) LEASED. AEROMEXICO (AMX) IS NEGOTIATING 747-300, 14 MONTH LEASE FOR CHARTER SERVICES TO ROME. 767-283, EX-TRANSBRAZIL (TBL), TO REPLACE 767-3Y0, RETURNED TO SCANDINAVIAN AIRLINES (SAS).
AUGUST 1999: ALONG WITH KOREAN AIR (KAL), AEROMEXICO (AMX) MAY JOIN NEW, AIR FRANCE (AFA)/DELTA AIRLINES (DAL), UNNAMED ALLIANCE, BEFORE THE END OF 1999.
PLANS TO SPEND $4 MILLION TO UPGRADE RAMP AREA AND MAINTENANCE FACILITIES, AT MONTERREY, MEXICO.
SEPTEMBER 1999: PARENT COMPANY CINTRA, ERNESTO MARTENS, CHAIRMAN, REPLACED BY JAIME CORREDOR, EX-FINANCE MINISTER.
GOVERNMENT TO PRIVATIZE 13 AIRPORTS: CIUDAD JUAREZ, CHIHUAHUA, CULIACAN, MAZATLAN, DURANGO, MONTERREY, REYNOSA, TAMPICO, ZACATECAS, SAN LUIS POTOSI, ZIHUATANEJO, AND ACAPULCO.
AEROMEXICO (AMX) INTENDS TO JOIN A NEW GLOBAL ALLIANCE WITH DELTA AIRLINES (DAL) & AIR FRANCE (AFA).
GERARDO DE PREVOISIN, FORMER CEO, FINALLY EXTRADITED FROM
SWITZERLAND, AFTER FLEEING THERE WITH ALLEDGED MILLIONS OF DOLLARS, EMBEZZLED FROM (AMX) SEVERAL YEARS AGO, IS NOW CONFINED TO A CELL, IN MEXICO CITY'S XOCHIMILCO PRISON.
OCTOBER 1999: JUAN DIEZ - CANEDO RUIZ, GENERAL DIRECTOR, CINTRA.
DECIDES TO SELL GOVERNMENT'S 63% STAKE IN CINTRA.
1ST 9 MONTHS = 8.93B RPK (+10.8%), 66M FTK (-6.8%), 6.40M PAX (+9.2%).
1 MD-82 (49126), CIT (TCI) LEASED, & 1 MD-83 (49845), EX-ALLEGRO (AEG).
NOVEMBER 1999: IN 12/99, TO PHOENIX, & COZUMEL - ATLANTA.
1ST 9 MONTHS CINTRA = +$118 MILLION (-$30 MILLION).
MARCOS FRAGOSA, VP BASE MAINTENANCE RESIGNS.
1 MD-87 (49671), EX-SURINAM AIRLINES (SUR), (ILF) LEASED.
DECEMBER 1999: LOS ANGELES (LAX) - MONTERREY (MD-83, 125Y PAX), VIA HERMOSILLO.
FRANCISCO HERNANDEZ CANO, VP BASE MAINTENANCE.
1 757-200 (PW2037) (27203), EX-FAR EASTERN AIR TRANSPORT (FAT). 1 MD-83 (1592-49848, XA-SWW), EX-ALLEGRO (AEG), PEGASUS (PSS) LEASED.
JANUARY 2000: MD-82 (48079), EX-ALASKA AIRLINES (ASA), PEGASUS (PSS) LEASED. 1 MD-83 (49845), EX-ALLEGRO (AEG), (PSS) LEASED.
FEBRUARY 2000: (http://www.aeromexico.com).
MARCH 2000: TO CHICAGO (ORD) (ITS 10TH USA GATEWAY). IN 6/00, HERMOSILLO - LAS VEGAS (MD-80, DAILY).
AEROMEXICO (AMX) IS INVITED TO JOIN GLOBAL "SKYTEAM" ALLIANCE BY 2003, WITH AIR FRANCE (AFA), DELTA AIRLINES (DAL), AEROFLOT (ARO) AND KOREAN AIR (KAL).
DAVID NAKAMURA, VP PRODUCTIVITY & OPERATIONS DEVELOPMENT.
APRIL 2000: 6,431 EMPLOYEES.
1ST Q = 3.38B RPK (+21.5%); 13.17M FTK (-39.7%); 2.33M PAX (+14.7%).
1 MD-82 (48079), EX-ALASKA AIRLINES (ASA), PEGASUS (PSS) LEASED.
MAY 2000: DEPARTMENT OF TRANSPORTATION (DOT) OK'S MERIDA - ATLANTA, CODE SHARE WITH DELTA AIRLINES (DAL). CODE SHARE WITH (DAL), TO CAMPECHE. IN 6/00, HERMOSILLO - LAS VEGAS AND CHARTERS TO ORLANDO-SANFORD.
1 ORDER (3/01) 757-2Q8 (PW2037) (30045), (ILF) 3 YEAR LEASED. 767-3YOER (450-26200), RETURNED TO LESSOR.
JUNE 2000: CODE SHARE WITH DELTA AIRLINES (DAL), HERMOSILLO TO LAS VEGAS (MD-80, DAILY NONSTOP). NEW GLOBAL ALLIANCE: DELTA AIRLINES (DAL) - AIR FRANCE (AFA) - KOREAN AIR (KAL) - AEROMEXICO (AMX), NAMED "SKYTEAM," TO COMPETE WITH "ONEWORLD," AND "STAR" ALLIANCES.
MD-87 (49779), EX-RENO AIR (RNO), CIT (TCI) 5 YEAR LEASED.
JULY 2000: 1999 = 12.19B RPK (PASSENGER TRAFFIC) (+13.7%); 90.99M (FREIGHT TRAFFIC) FTK (-3%); 8.67M PASSENGERS (PAX) (+11%); 6,431 EMPLOYEES.
CODE SHARE WITH AIR FRANCE (AFA), FROM PARIS TO LYON, NICE, AND TOULOUSE.
SEPTEMBER 2000: CODE SHARE WITH COMAIR (COI), ON DALLAS - MEXICO CITY, PUEBLA & ATLANTA, DALLAS - MONTERREY, ROUTES.
1ST 6 MONTHS = 6.88B RPK (+21.2%); 27.32M FTK (-36.3%); 4.72M PAX (+13.8%).
SKYTEAM CARGO, INCLUDING AEROMEXICO (AMX) CARGO, DELTA AIRLINES (DAL) AIR LOGISTICS, AIR FRANCE (AFA) CARGO, & KOREAN AIR (KAL) CARGO, OPERATES 1,070 AIRPLANES, 6,810 DAILY FLIGHTS TO 411 DESTINATIONS (INCLUDING 12 MAJOR HUBS) IN 100 COUNTRIES.
1 MD-82 (49150), EX-FINNAIR (FIN).
OCTOBER 2000: CODE SHARE WITH DELTA AIRLINES (DAL), MERIDA - ATLANTA. CODE SHARE WITH (DAL), LEON - ATLANTA (737-800). CODE SHARE WITH (DAL), ATLANTA - ACAPULCO, VIA MONTERREY (MD-80). CANCUN - LOS ANGELES (LAX).
GOVERNMENT ORDERS PARENT COMPANY CINTRA, TO SELL AEROMEXICO (AMX) AND MEXICANA (CMA).
1ST 6 MONTHS TOP WORLD AIRLINES PASSENGER TRAFFIC RPK (B):
20 ASA 9.43; 21 SAB 9.26; 22 BEJ 8.26; 23 FIN 7.35; 24 AMX 6.88; 25 ARG 5.29.
ACCDT: DC-9 CRASHED ON LANDING AT REYNOSA AIRPORT, SKIDDING OUT OF CONTROL ON WET RUNWAY, RUNNING INTO HOUSES, KILLING MOTHER & 3 CHILDREN, + 2 OTHERS ON GROUND, = 5/83 CREW/PASSENGERS OK, DC-9-31 (571-47501) DESTROYED & WRITTEN OFF (W/O).
NOVEMBER 2000: (DOT) OK'S GUADALAJARA - ONTARIO, CALIFORNIA, (MD-80).
MD-82 (49126), RETURNED TO CIT AEROSPACE (TCI), LEASED TO SPIRIT AIRLINES (SPR). 1 MD-87 (1430-49404, N204AM), EX-FINNAIR (FIN), FIRST SECURITY (FSB) LEASED.
DECEMBER 2000: IN 1/01, MONTERREY TO NEW YORK (JFK) (DAILY NONSTOPS), (MD-80), WITH POSSIBLE CODE SHARE WITH SKYTEAM PARTNER, DELTA AIRLINES (DAL), WITH FLIGHT CONTINUING SOUTHBOUND, TO GUADALAJARA.
1ST 9 MONTHS = 10.77B RPK (+20.7%), 41.47M FTK (-37.3%), 7.32M PAX (+14.4%).
CARLOS NAJERA, PRODUCTION PLANNING MANAGER. RICARDO LORA, HEAVY MAINTENANCE MANAGER.
POSSIBLE ACQUISITION OF 717-200'S TO REPLACE DC-9 FLEET.
JANUARY 2001: CODE SHARE WITH GRUPO TACA PERU (TNM), TO LIMA (DAILY).
FEBRUARY 2001: 2000 ON-TIME RECORD = 88.7%, BETTER THAN ANY MAJOR USA CARRIER.
CODE SHARE WITH AIR FRANCE (AFA), TO ROME, LONDON, AND BARCELONA (SKYTEAM).
MARCH 2001: 2000 = 14.39B RPK (+18.1%), 110.90M FTK (+21.9%), 9.75M PAX (+12.4%).
757-2Q8 (957-30045, N301AM) DELIVERY.
APRIL 2001: 6,846 EMPLOYEES (INCLUDING 805 FC, & 1,443 CA).
HUBS AT GUADALAJARA, HERMOSILLO, & MONTERREY.
AEROMEXICO (AMX) IS ONLY AIRLINE, TO OPERATE NONSTOP, LOS ANGELES (LAX) - ACAPULCO (MD-82).
JUNE 2001: 2000 FISCAL YEAR (FY) = -$13M. 1ST Q = 3.45B RPK (+1%), 28.79M FTK (+33.7%), 2.34M PAX (-.7%).
LAYS OFF -400.
1 MD-87 (49857), EX-RENO AIR (RNO).
JULY 2001: IN 12/01, CODE SHARE WITH DELTA AIRLINES (DAL), TO SALT LAKE CITY. ALITALIA (ALI) BECOMES 6TH MEMBER OF "SKYTEAM" ALLIANCE: (AFA); (DAL); (KAL); (CSA); & (AMX).
1 MD-87 (49587), EX-AMERICAN AIRLINES (AAL).
AUGUST 2001: MEXICO CITY/HERMOSILLO - SALT LAKE CITY (2/WEEK) IN 12/01.
MD-82 (49440), RETURNED TO PEGASUS (PSS).
SEPTEMBER 2001: FOLLOWING INDUSTRY DOWNTURN, MAY LAY OFF -1,400 JOBS.
OCTOBER 2001: FACED WITH WORST CRISIS IN LATIN AMERICAN AVIATION HISTORY, THE HEADS OF 11 MAJOR AIRLINE MEMBERS OF THE LATIN AMERICAN AIR TRANSPORT ASSOCIATION (AITAL): INCLUDING (ACE); (AVI); (AMX)/(CMA); (LAV); (AVN); (SEZ); (COP); (LAN); (TAC); (VAR); & (VSP), MET IN MIAMI TO SEEK SOLUTIONS AND POSSIBLE HELP FROM GOVERNMENTS. SINCE "9/11," HAS EXPERIENCED -27% DROP IN PASSENGER TRAFFIC, IN FLIGHTS TO AND FROM THE USA, AND -14% SYSTEMWIDE.
NOVEMBER 2001: CODE SHARE WITH CZECH AIRLINES (CSA) (SKYTEAM PARTNER), TO PRAGUE, VIA NEW YORK (JFK), AND PARIS, IN 12/01. IN 1/02, TO ONTARIO, CALIFORNIA. MEXICO CITY - CANCUN - SANTO DOMINGO.
PLANS TO REDUCE DC-9 FLEET TO 6 AIRPLANES. WILL RETURN 4 MD-82'S AND ACQUIRE 2 MD-87'S.
JANUARY 2002: HERMOSILLO - ONTARIO, CALIFORNIA (MD-80, 5/WEEK).
2001 TOP 50 WORLD AIRLINES - PASSENGER TRAFFIC B RPM:
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.
1 MD-87 (49585), EX-SCANDINAVIAN AIRLINES (SAS), WELLS FARGO LEASED.
MARCH 2002: (TELEPHONE: (5) 327 40 94). (FAX: (5) 511 94 57).
CANCUN - MIAMI.
APRIL 2002: 7,414 EMPLOYEES. SITA: MEXWRAM.
(TELEPHONE: +52 (5) 133 4000). (FAX: +52 (5) 133 4619).
MAIN BASE: LIC. BENITO JUAREZ INTERNATIONAL (MEX).
HUBS: MONTERREY - GEN MARIANO ESCOBEDO INTERNATIONAL (MTY); GUADALAJARA (GDL); HERMOSILLO (HMO).
MAY 2002: CODE SHARE WITH JAPAN AIRLINES (JAL), TO VANCOUVER, CANADA (747, 2/WEEK NONSTOP).
July 2002: Monterrey - New York (JFK) (MD-88, 4/week nonstop).
2001 = -$46.82M (+$7.64M): 14.07B RPK (-4%); 66.1% LF; 9.48M PAX (-4.8%); 95.38M FTK (-14.1%); 7,414 employees (+8.3%). 1st 6 months = 6.33B RPK (-9.3%); 4.28M PAX (-9.6%); 35.58M FTK (-27.2%).
$500M, 15 orders (8/03) 737-700, (with winglets) leased, to replace DC-9's, 6 leased from Lombard Aviation Capital, and 9 from (ILF).
August 2002: Aeromexico (AMX) and Mexicana (CMA)'s privatization, is unlikely to be completed until end of 2003, because parent company, Cintra wants to wait until the industry recovers somewhat, and hopes to get a higher price.
To code share with Alitalia (ALI), on New York (JFK) - Rome.
MD-87 (1621-49727), Pegasus (PSS) leased.
September 2002: In 11/02, Loreto - San Diego (2/week).
Parent, Cintra 2nd Q = -# 710 Million Peso/-$71.5 Million (-# 69M Peso): the bad results due to the effects of "9/11" and currency devaluation.
October 2002: In 11/02, to Chicago (ORD), & Mazatlan - San Diego.
Parent, Cintra 3rd Q = -# 99 Million Pesos (-# 233 Million P).
MD-87 (1674-49780, XA-TWA), Pegasus (PSS) leased.
November 2002: Delta Airlines (DAL) Technical Operations, 10-year, Aeromexico (AMX) contract for (PW2037) engines and component maintenance for 8 757's, & as part of deal, (AMX) will install new insulation blankets in (DAL) MD-88'S/MD-90's, in Guadalajara.
Code share with (DAL), San Diego to Loreto, and Mazatlan.
February 2003: Selects MaestroCrew from (SBS) International, a wholly owned subsidiary of Boeing, for its next generation, real-time, flight-crew tracking and management systems.
9 orders (10/03) 737-700's (CFM56-7B), (ILF) 7 year leased.
March 2003: Cintra 2002 = -$149.5 Million (-123.4 Million).
MD-87 (1614-49706, XA-TWT), Air Trade Capital leased.
April 2003: In 6/03, Ontario - Los Cabos (4/week). In 7/03, Ontario, California - San Jose del Cabo (4/week nonstop).
June 2003: 6,430 employees. SITA: MEXWBAM.
Selected Rockwell Collins to provide avionics and inflight entertainment for all new 737-700 airplanes.
Aeromexico (AMX) and SkyTeam partners (DAL), (CSA), (AFA), & (KAL) are leasing facilities from airports operator (ADP) in the new purpose-built # EUR750 Million/$892 Million Terminal 2E at Paris Charles de Gaulle (CDG). Alitalia (ALI) operations will remain for now in nearby 2F. Terminal 2E, basically consisting of a main concourse 450 m long and a boarding pier 650 m long, ultimately will have a handling capacity of 17 on-stand parking gates and up to 10 Million passengers/year, with 6 Million passengers/year in the initial phase.
In 7/03, Fort Lauderdale - Mexico City (4/week). Orlando - Monterrey with continuing service to Guadalajara (MD-80, 2/week).
July 2003: Arturo Barahona, (CEO), replaces Alfonso Pasquel, who resigned and will become an adviser to the airline.
Code share with Delta Airlines (DAL), Ontario - Los Cabos & Las Vegas - Monterrey.
August 2003: Code share with Delta Airlines (DAL), Fort Lauderdale - Mexico City and Orlando - Monterrey.
September 2003: Tijuana - Cuernavaca.
Cintra 2002 = -$170.4 Million (-$146.8 Million): Aeromexico (AMX) 2002 = 13.31B RPK (-4.5%); -2.8% ASK; 64.8% LF (-1.2); 8.8M PAX (-6.4%); 87M FTK (-8.4%); 6,650 EMPLOYEES (+.2%).
2002 TOP WORLD AIRLINES PASSENGER TRAFFIC RPK (Billion):
48 (LTU) 16.10; 49 (JAA) 15.90; 50 (HAP) 14.40; 51 (JMA) 13.97; 52 (PAL) 13.52; 53 (AMX) 13.31; 54 (AIN) 13.25; 55 (FIN) 12.79; 56 (BER) 12.73; 57 (ELA) 12.54; 58 (TPR) 12.08.
MD-82 (1180-49190, XA-AMQ) returned to (GECAS) (GEF).
October 2003: 1st 2 737-752's (1381-33783, XA-AAM; 1393-33784, XA-BAM) deliveries.
November 2003: Cintra 3rd Q = -$6.2 Million: +3.7% RPK; 66.3% LF.
MD-82 (1028-48067, N1003X) returned to (ACG).
December 2003: Signed 10-year alliance agreement with Continental Airlines (CAL) for flights between the USA & Mexico starting 1st Q 2004.
January 2004: 737-752 (1439-33788, XA-GAM) delivery.
March 2004: Resumes Miami - Cancun (MD-88, 142 PAX, (2/week).
April 2004: Mexicana (CMA)'s boss, Fernando Flores is being transferred to lead Aeromexico (AMX) after the resignation of Arturo Barahona.
737-752 (33789, XA-HAM) delivery. DC-9-32 (48128) returned to (GEF).
May 2004: MD-82 (48067) leased to Aeropostal (LAV).
June 2004: ACSS, an L-3 Communications (ESM) and Thales company, earned another 5 (STC)'s for (T2CAS), its combined traffic & terrain avoidance system. The (STC)'s enable the new product to be used in revenue service at AeroMexico (AMX) for 7 757's & 5 767's, Air Atlanta Icelandic (AID) for 4 757's, European Air Transport (EPT) for 35 757's, and Virgin Express (EBA) for 9 737's.
Code share with Air Europa (ARE), Madrid - Cancun, & Mexico City - Madrid.
SkyTeam: Aeroflot (ARO) (applicant); Aeromexico (AMX); Air France (AFA)/(KLM); Alitalia (ALI); (CSA) Czech Airlines; Continental Airlines (CAL) (agreed to join); Korean Air (KAL); & Northwest Airlines (NWA) (agreed to join).
737-752 (33789, XA-HAM) delivery. 767-2B1ER (511-26471, XA-OAM), bought from (LAM) Mozambique.
July 2004: 2003 = -$88.2 Million (-$53.7 Million): 13.65 Billion (+2.6%); 66.2% LF; 8.91 Million PAX (+1.3%); 96.52 Million FTK (+10.5%).
Mexico City - San Pedro Sula (2/week charters for Hondumex until 10/04).
737-752 (1533-33790, XA-NAM) delivery.
August 2004: Parent Cintra 2nd Q = -$40 Million (-$65 Million).
737-752 (1557-33791, XA-JAM) delivery. 757-2Q8 (26270) returned to Boeing (TBC).
September 2004: Northwest Airlines (NWA), (KLM), & Continental Airlines (CAL) become the newest members of the SkyTeam alliance to join Aeromexico (AMX), Air France (AFA), Alitalia (ALI), (CSA) Czech Airlines, Delta Airlines (DAL), & Korean Air (KAL).
8 orders (7/05) 737-700's +2 leased. 737-752's (1565-28262, N904AM), (ILF) leased. 737-752 (1571-33792, XA-KAM) delivery. MD-82 (1139-49222, XA-), Pegasus (PSS) leased.
October 2004: Parent, Cintra received government approval to merge Aeromexico (AMX) and Mexicana (CMA) into a single carrier, and also Aerocaribe (AEB) with Aerolitoral into a single carrier, in order to sell both new airlines to 3rd parties.
2 737-752's (1586-29356, N906AM; 32842, XA-), (ILF) leased. +1 order (10/05) 737-700, (ILF) 10 year leased.
November 2004: Code share with Delta Airlines (DAL), Salt Lake City - Cancun.
2 737-752's (1601-30038, N908AM), (ILF) leased; 1597-33793, XA-LAM), deliveries.
December 2004: In 1/05, Puerto Vallarta - San Diego.
Andres Conesa, Chairman, Cintra.
737-76Q (1156-30283, N997AM), ex-EasyJet (EZY), Boullioun (BOU) leased.
January 2005: 2 orders 777-2Q8ER's (GE90-94B) (32718; 32719), (ILF) leased. Will replace 767-300ER's on intercontinental routes Mexico City to Madrid & Paris.
May 2005: MD-82 (48079) & MD-83 (49658) returned to lessor.
June 2005: 737-752 (33787, N852AM), (ILF) leased. 757-2Q8 (25624) returned to (ILF).
July 2005: 6,703 employees.
Los Angeles - Culiacan (2/week). Cancun - Atlanta.
737-752 (34293, XA-PAM), delivery.
August 2005: 6,730 employees (+.4%).
2 orders 737-700's and 3 orders 737-800's. 2 737-752's (34294, XA-QAM; 34295, XA-VAM), deliveries.
September 2005: (ARINC) was selected as data link service provider for AeroMexico (AMX). Under a contract just signed, (ARINC) will provide its GlobaLink VHF data link service to the carrier.
October 2005: Iberia Airlines (IBE) decided not to participate in the privatization of AeroMexico (AMX) and Mexicana (CMA), citing unfavorable market conditions. According to (AFX) in Madrid, Iberia Chairman Fernando Conte previously expressed concern over the ability of the 2 airlines to compete with their current business structure against emerging low-cost carriers. He also was not satisfied that foreign investment would be kept to 25%. However, according to Reuters, Spain's Globalia, which owns Air Europa (ARE), is interested in bidding for the airlines.
AeroMexico (AMX) announced that it received the (IATA) Operational Safety Audit certificate last month, becoming the first Mexican airline so certified. The carrier's audit was conducted June 13 - 17.
737-752 (34296, XA-WAM) delivery. 737-752's (33792; 33793), sold to ILFC (ILF) and leased back.
November 2005: Cintra SA, Mexico's state-owned airline company that has managed AeroMexico (AMX) and Mexicana (CMA) since the mid-1990s and is attempting to privatize them, said that only two bidders remain in the running for the government's shares in the airlines, according to media reports. Hotel operator Grupo Posadas and Grupo Xtra, a holding company run by a Mexican businessman, are the only remaining bidders from 10, including Iberia (IBE) and Icelandair (ICE), that were approved in August. Cintra will spend the next week evaluating the offers and the government can reject both bids if it chooses. One bidder will not be allowed to purchase both airlines.
3 737-752's (32842, N842AM; 34297, EI-DMX; 34298, EI-DMY), deliveries.
December 2005: Cintra SA said its shareholders unanimously approved the sale of Mexicana (CMA) and low-cost airline Click (AEB) to the Grupo Posadas hotel company for $165 million plus the assumption of $294 million in debt and $997 million in airplane lease obligations in the first stage of Mexico's long-anticipated airline privatization. Posadas also will take a 50% stake in other airline units including ground services and cargo, the Associated Press reported. The largest hotel operator in Mexico, Grupo Posadas also has hotels in the USA, Argentina and Brazil. Its brands are Fiesta Americana Grand, Fiesta Americana, Fiesta Inn, Caesar Park, Caesar Business and The Explorean.
Cintra, the state holding company for AeroMexico (AMX) and Mexicana (CMA), made the announcement as it said it will postpone the sale of AeroMexico (AMX), the larger of the two carriers, until next year. Grupo Posadas also bid on 75% of AeroMexico (AMX) while Grupo Xtrta SA bid for all the shares of both airlines. However, Cintra said both bids were too low.
Mexicana (CMA) earned 105.7 million pesos/$10 million in the 3rd quarter ended September 30, down -85% compared to income of +693.3 million pesos in the year-ago period net of a +299 million peso special gain. Revenues were basically flat at 4.9 billion pesos while operating expenses rose +6.3% to 4.08 billion pesos driven largely by a +37% jump in fuel expense. Operating profit declined -18.5% to 333.6 million pesos. For the 1st 9 months, Mexicana (CMA)'s net profit fell -17.5% to +118.1 million pesos from 143.3 million pesos.
AeroMexico (AMX) will launch 3x-weekly service between Mexico City and Phoenix December 15. It currently connects the cities via Guadalajara and Hermosillo.
AeroMexico (AMX) named Manuel Jaquez West Coast regional manager, USA Division.
Mexicana (CMA)'s operating fleet numbered 64 airplanes at mid-year.
January 2006: AeroMexico (AMX) applied to operate 2x-weekly Mexico City - Cleveland service aboard 737-700s beginning April 1. AeroMexico (AMX) and Mexicana Airlines (CMA) plan to end service from Dallas/Fort Worth International Airport (DFW), according to media reports. AeroMexico (AMX), which has served (DFW) since 1994 and operates one flight per day to Mexico City, will cease operations Feb 5. Mexicana (CMA) will leave (DFW) Jan 10. It flew once daily to Guadalajara, 4x-weekly to Morelia and 3x-weekly to Zacatecas. AeroMexico (AMX) codeshares with Delta Air Lines (DAL) and was hurt by the latter's withdrawal from (DFW) last year. AeroMexico (AMX) will expand its Mexico City - San Diego service from 2 to 4 flights per week beginning January 12. AeroMexico (AMX) plans to inaugurate nonstop service from Mexico City to Toronto on September 1st. (AMX) would operate a daily flight using a 737-700. AeroMexico (AMX) plans to inaugurate nonstop service from Mexico City to Detroit on September 6th. The airline would operate 3x-weekly, on Wednesday/Friday/Sunday, using a 737-700.
Cintra SA, Mexico's airline holding company, is changing its name to Consorcio Aeromexico, according to media repots. Cintra sold Mexicana (CMA) and its Click (AEB) Low-Cost Carrier (LCC) to hotel company Grupo Posadas last month, but opted to retain AeroMexico (AMX).
Mexico City Airport's new second terminal will be finished by (ICA), Mexico's largest construction company, under a new MXN1.9 billion/$180.2 million contract, Reuters reported. The work will run through August.
727-752 (34299, EI-DNB), delivery.
February 2006: Mexican airport operator Grupo Aeroportuario del Pacifico (GAP)'s shares jumped more than +30% as the government began selling 85% of its stock in the company. (GAP) operates 12 airports in Mexico, including Guadalajara, Tijuana and Puerto Vallarta.
The action represents the largest privatization in Mexico and highlights a government plan to privatize the airport industry, which until now has operated on long-term concessions handed out by the government.
AeroMexico (AMX) placed an order for 3 737-700s and 3 737-800s, Boeing announced. The airplanes are worth approximately $372 million at list prices and will begin delivery in 2007. "Since they were introduced to our fleet in 2003, the Boeing 737-700 has proved to be an exceptional airplane and with the acquisition of the 737-800 in 2006, we will continue our fleet renovation program with great success," said AeroMexico (AMX) (CFO) Francisco Cuevas. The carrier is scheduled to take delivery of 8 737NGs and 2 777-200ERs this year. It also placed an order for 14 Aviation Partners Boeing (AVP) blended winglet shipsets, covering the 8 737NGs to be delivered this year and the 6 new orders. The 737-800's will replace 757-200's on its services to the USA, including the 1816 nm route from Mexico City to New York.
737-752 (34300, EI-DNC), delivery.
March 2006: Korean Air (KAL) and AeroMexico (AMX) announced a codeshare agreement effective March 1 allowing Korean Air (KAL) passengers arriving in Los Angeles (LAX) to connect to AeroMexico (AMX) flights to Mexico City and Guadalajara. AeroMexico (AMX) passengers will be able to connect through (LAX) to (KAL)'s Seoul service. The airlines already share loyalty program reciprocity through SkyTeam.
AeroMexico (AMX) adds new service from Ontario, California, to Aguascalientes, Leon/El Bajio and Morelia, beginning the week of April 2, bringing the total number of weekly flights from Ontario to 19.
AeroMexico (AMX) took delivery of its first 777-2Q8ER (32718, N745AM) from Boeing, (ILF) leased. With the delivery, it also "becomes the first airline in the Americas to receive Boeing's Class 3 Electronic Flight Bag (EFB)," the airframer said. The airline will take a second 777-2Q8ER (32719, N746AM) in April and both are leased from (ILFC) (ILF) to replace 767s on European routes.
April 2006: Aeromexico (AMX) will operate a 3x-weekly Los Angeles - La Paz service through April 30, which it said would target passengers affected by Aerocalifornia (AEX)'s suspension by aviation authorities. Aeromexico (AMX) will increase the frequency on its Mexico City (MEX) to Chicago O'Hare (ORD) route from 1 to 2 flights a day on May 1st. Besides the existing daily flight, the airline will operate a (MEX) departure at 8:20 pm (daily except Wednesdays) and (ORD) departure at 1:30 am (daily except Tuesdays) using a 737-700.
777-2Q8ER (32719, N736AM), (ILF) leased.
May 2006: Falling passenger revenues and the mitigating effect of rising fuel prices on its cost control efforts, proved to be a drag on AeroMexico (AMX)'s bottom line as parent company Consorcio Aeromexico, which also operates Regional carrier Aeroliteral, reported a first-quarter net loss of -MXN270 million/-$24.4 million, widened from what is assumed to be a -MXN175 million deficit in the three months ended March 31, 2005. There was a discrepancy in the company's quarterly report, as it reported a +MXN174.6 million profit in the year-ago quarter on its P&L statement. However, in the text that accompanied the financial tables, it consistently referred to the year-ago result as a loss of -MXN175 million.
Consorcio Aeromexico, formerly known as Cintra, voted in December to sell off Mexicana (CMA) and low-cost carrier Click (AEB) to Grupo Posadas, a Mexican hotel chain, but opted to keep AeroMexico (AMX) after bids from GP and a pharmaceutical company were rejected. In addition, its net performance in the year-ago quarter was affected by a +MXN365 million special gain resulting from a victory in a tax-related court case.
Total revenues dropped -5.3% to MXN4.39 billion as income derived from domestic passenger services slipped -0.8% to MXN2.75 billion and international passenger revenue plunged -19.1% to MXN1.13 billion, owing to appreciation of the peso, the seasonality of the Easter holiday and increased competition on routes to the USA. The company did say that "commercial and administrative measures" aimed at strengthening its performance on USA routes "have begun to give positive results" and are expected to "lead to a sustained recovery." It also said the introduction of two 777s onto select European routes will benefit its bottom line.
Consorcio Aeromexico said an "integrated cost-reduction program" largely was effective as operating costs excluding fuel and payroll were reduced 8.6% across items including travel agent commissions, maintenance, insurance, passenger service and Information Technology (IT) systems. However, a +14.8% jump in fuel costs to MXN1.23 billion left total operating expenses at MXN4.12 billion, +0.07% higher than in the year-ago period. Consequently, operating loss more than doubled to -MXN363.4 million from -MXN125.5 million.
"It is worth noting that had jet fuel maintained the prices of the previous year and the Easter holiday season been located in March, operating income would have been very similar to that of the first quarter of 2005," the company said.
First-quarter passenger traffic dropped -4.8% to 3.42 billion (RPK)s against a -3.6% decline in capacity to 5.43 billion (ASK)s. The fleet numbered 97 airplanes at the close of the quarter compared to 92 last year. Load factor dipped -0.8 point to 63% LF. Yield fell as well, decreasing -2.2% to MXN1.14 owing to fare composition adjusted "in the face of growing competition." Fuel costs lifted (CASK) 2.2% to MXN0.85. Unit costs were down -2.3% to MXN0.63 excluding fuel.
AeroMexico (AMX) inaugurated nonstop service from La Paz to Los Angeles. The airline now operates 2x-weekly on Thursdays & Sundays, using an MD-87.
June 2006: 9 SkyTeam (STM) member carriers signed a Memo of Understanding (MOU) with the British Airports Authority (BAA) confirming their co-location at London Heathrow (LHR)'s Terminal 4 in 2008, when the new T5 opens and the airport reorganizes. The alliance said nearly 3.5 million passengers travel through (LHR) each year aboard Aeroflot (ARO), Air France (AFA)-(KLM), Alitalia (ALI), (CSA) Czech Airlines, and Korean Air (KAL). (KLM) already operates out of T4. AeroMexico (AMX), Delta Air Lines (DAL), and Northwest Airlines (NWA) are parties to the agreement and will have the option to take a place in T4 should they serve Heathrow (LHR) in the future.
The alliance will upgrade the terminal to include 32 check-in desks, additional luggage drop-off locations, lounges and space for self-serve kiosks.
AeroMexico (AMX) will lease three 787-8s from International Lease Finance Corporation (ILF), with deliveries beginning in 2010. The airplanes will replace 767s on leases set to expire and will be used on flights to Europe and Asia. ILFC (ILF) has 20 787s on firm order.
AeroMexico (AMX) recently took delivery of two 777-200ERs. "With similar speeds, mission capabilities and cockpit commonality, the combination of the 787 with the 777 will provide AeroMexico (AMX) with optimum fleet flexibility on long-range missions," said Boeing Commercial Airplanes VP Sales, Latin America and the Caribbean, John Wojick.
July 2006: Aeromexico (AMX) will inaugurate nonstop service from Culiacan to Los Angeles. The airline will operate 4 flights a week, on Mondays, Wednesdays, Thursdays, & Sundays, using an MD-80. AeroMexico (AMX)will increase the frequency on its Mexico City to Chicago O'Hare route from 2x- to 3x-daily on September 1st. The additional flight will depart Mexico in the morning and Chicago in the afternoon and all 3 flights will operate with 737-700s. AeroMexico will increase the frequency on its Mexico City to Phoenix route from the current 3x-weekly to daily service by September 10th. The airline will operate a 737 on Mondays, Wednesdays, & Saturdays and an MD-80 on Tuesdays, Thursdays, Fridays, & Sundays.
Delta Air Lines (DAL) and Aeromexico (AMX) formed a Maintenance Repair & Overhaul (MRO) partnership through which their respective maintenance divisions, Delta (DAL) TechOps and Aeromexico (AMX) Maintenance and Engineering, will market and perform (MRO) services jointly. In addition, Delta (DAL) will be the exclusive (MRO) provider for Aeromexico (AMX)'s (CFM56-7)s and (131-9B APU)s while (AMX) will provide heavy (MRO) for (DAL)'s MD-88s.
August 2006: 737-752 (35785, XA-GOL), delivery.
September 2006: AeroMexico (AMX) will inaugurate nonstop service from Mexico City to Fort Lauderdale on October 6th. The airline will operate daily flights using a 737-700.
737-852 (35114, EI-DRA), delivery see photo.
October 2006: AeroMexico (AMX) will inaugurate service from Mexico City to Tokyo Narita via Tijuana on November 16th. The airline will operate 2x-weekly, departing Mexico City on Mondays & Thursdays, Tijuana on Tuesdays & Fridays and Tokyo on Wednesdays, & Saturdays, using a 777-200.
Aeromexico (AMX) will increase the frequency on its Mexico City to San Antonio route from 1 to 7x-weekly on November 16th. Currently, (AMX) only operates the route once a week on Tuesdays, that will increase to daily service, all with 737s.
AeroMexico (AMX) will increase the frequency of its Mexico City to Sao Paulo route from 7 to 9x-weekly on January 3rd. The airline will operate a daily flight as well as a 2nd flight, departing Mexico on Tuesdays & Saturdays, and Sao Paulo on Wednesdays & Sundays with a mix of 767s and 777s.
Consorcio Aeromexico, the holding company for Aeromexico (AMX) and Aeroliteral, reported 3rd-quarter net income of +MXN124 million/+$11.4 million, narrowed from earnings of +MXN263 million in the year-ago quarter, according to Reuters. Revenues were down -0.7% to MXN5.61 billion.
2 737-852's (35115, EI-DRB; 35116, EI-DRC), deliveries.
November 2006: AeroMexico (AMX) will increase the frequency on its Mexico City to Houston route from 2 to 3 flights a day from November 5th. All 3 flights will operate with 737s with a couple of flights a week using an MD-87.
AeroMexico (AMX) will inaugurate nonstop service from Guadalajara to Chicago O'Hare on November 13th. The airline will operate a daily flight using a 737.
Aeromexico (AMX) will launch four-times-weekly on Mondays, Thursdays, Fridays, & Sundays, Mexico City - Austin flights from December 15, providing the only scheduled air link between the capital cities of Mexico and Texas.
AeroMexico (AMX) will increase the frequency on its Mexico City to Orlando route on November 20th. Currently, the airline operates 5 flights a week, on Thursdays, Fridays & Sundays and 2 flights on Saturdays using mostly MD-80s. On November 20th, the airline will operate a daily flight and continue the 2nd flight on Saturdays with mostly MD-80s and 737s on Tuesdays & Wednesdays. Between December 11th and January 7th, AeroMexico (AMX) plans to operate 2 flights almost every day.
SkyTeam carriers Aeromexico (AMX), Air France (AFA), Alitalia (ALI), and (KLM) have co-located their operations at Sao Paulo Guarulhos (GRU) Terminal 1, which the alliance said is the 1st co-location in its network where the participating airlines operate equally. A common-use ticket office and joint purchasing of ground handling services, also have been implemented. The alliance operates 75 weekly flights to and from (GRU).
Aeromexico (AMX) announced firm orders for 2 787-800s, 10 737-700s, orders that previously were listed by Boeing as unidentified. The combined value of the 12 airplanes is >$830 million. The 787s, to be delivered in 2011, are in addition to 3 (AMX) plans to lease from ILFC (ILF). The 737-700s, scheduled for delivery starting in early 2010, are in addition to 6 737NGs it ordered last winter.
(AMX) said the 787s and two recently leased 777-200ERs will be used on routes to Europe, South America and Asia, replacing 767s coming off leases. "The speed and flightdeck commonality of the 787 and the 777 will allow Aeromexico (AMX) to adjust its long-distance routes, such as between Mexico and Japan, according to capacity demands," CEO, Andres Conesa said.
Aeromexico (AMX) signed a Memo of Understanding (MOU) with (GE) for purchase of (GEnx) engines to power the two 787-8 orders confirmed this month. The deal, which includes an OnPoint Solutions Maintenance Repair & Overhaul (MRO) agreement, is valued at more than $100 million.
2 737-752s (35786, XA-AGM; 35787, EI-DRE), & 777-2Q8 (28689, N774AM), (ILF) leased, deliveries.
December 2006: Mexico's airline industry is facing a significant overcapacity situation following the emergence of several new entrants, Aeromexico (AMX) (CEO), Andres Conesa said at the (ALTA) Latin American Airline Leaders Forum. According to Conesa, Mexico currently has an average of eight airlines competing on city-pairs of more than 1 million annual passengers compared to four in the USA. Furthermore, the top 10 busiest domestic routes have 1.8 times the number of seats required to meet demand versus 1.2 in the USA.
Aeromexico (AMX) and its regional affiliate Aerolitoral are part of Consorcio Aeromexico, the renamed Cintra, following Cintra's sale of Mexicana (CMA) last year to Grupo Posadas. Mexican new entrants, all Low Cost Carrier (LCC)s, include Volaris (VLS) and InterJet (AAE)based at Toluca Airport outside Mexico City, Alma in Guadalajara, Avolar (AVL) in Tijuana and Viva Aerobus (VVS) in Monterrey. Additionally, Mexicana (CMA) subsidiary Click (AEB), the former Aerocaribe, operates as an (LCC). Conesa said he expects a shakeout, with only a few new entrants surviving. "It's hard to think they can all remain," he said.
Starting January 3rd, Mexico City - Sao Paulo, increased to 9/week, using 767/777s.
737-752 (35117, EI-DRD), delivery. MD-82 (49667), returned to (GEF). MD-87 (49724), returned to CIT Group (TCI).
March 2007: Starting April 4th, Mexico City - Buenos Aires, using 767-200s.
April 2007: 1st quarter = -$43 million, (-65%), partly due to excess domestic supply and "extremely aggressive fares." Had 23.6% Mexican domestic market share (highest of all Mexican carriers).
MD-83 (49826), returned to Triton (TIA). MD-83 (49848), returned to Pegasus (PSS). MD-87 (49673, XA-SFO), returned to AeroUSA.
May 2007: Starting July 4th, Guadalajara - Mexico City - Seattle, using 737-700s.
737-852 (35119, XA-MIA), delivery.
June 2007: 737-852 (35120, XA-ZAM), delivery.
July 2007: Aeromexico (AMX) increased its Austin - Mexico City service to daily from 4x-weekly. Flights are operated by Aerolitoral ERJ-145s.
Copa Airlines (COP) and Aeromexico (AMX) unveiled a codeshare agreement starting August 1. Initially, Copa (COP) will place its code on (AMX) flights from Mexico City to 17 Mexican destinations, while the latter will place its code on Copa (COP) flights from Panama City to Mexico City, Cancun and Guadalajara.
737-852 (35121, XA-JOY), delivery.
August 2007: Father and son, Alberto Saba Raffoul and Moises Saba Masri made an official bid for AeroMexico (AMX), after receiving permission from the country's National Banking and Securities Commission, announcing an offer valued at about $100 million.
Mexico's largest airline is controlled by state holding company Consorcio Aeromexico, which has been trying to sell the carrier to private investors since 2005, but has not received what it considers a viable offer. Archrival Mexicana (CMA) was sold to an investment group led by Grupo Posadas in late 2005, for $165.5 million plus assumption of liabilities, that brought the total value of the deal to $1.46 billion.
The Sabas' MXN1.10/$0.10 per share offer was deemed low given that the shares closed at nearly double that price. Consorcio, which is 62% government-owned, saw its stock price drop more than >-10% after the offer was made public. But Moises Saba, a former TV Azteca executive, told RadioFormula that the offer price takes into consideration that any new owner likely would inherit the airline's debt. (AMX)'s board is expected to vote on the proposal within 10 days.
737-752 (35122, XA-MAH), delivery and 777-2Q8ER (28692), ex-Varig (VAR), (ILF) leased.
September 2007: AeroMexico (AMX)'s board said all its members consider last month's $100 million offer from the Saba family to be "reasonable." (AMX) is controlled by state holding company Consorcio Aeromexico, which has been trying to sell it to private investors since 2005. Archrival Mexicana (CMA) was sold to an investment group led by Grupo Posadas in late 2005 for $165.5 million, plus assumption of liabilities that brought the total value of the deal to $1.46 billion.
Banamex, Citigroup (TCI)'s Mexican banking unit, said it will lead a group of investors prepared to launch a bid valued at more than >$150 million to purchase AeroMexico (AMX) from the government holding company Consorcio Aeromexico. The bid of MXN1.68/$0.15 per share tops the MXN1.10 per share offer valued at about $100 million recently made by the Saba family. AeroMexico (AMX)'s board called the Sabas' offer "reasonable." Banamex said it is seeking permission from Mexico's Federal Competition Commission, and National Banking and Securities Commission to make the bid formally. It said it has lined up 14 private investors.
The Competition Commission said this week that Mexicana (CMA) owner Grupo Posadas asked for permission to launch a bid for AeroMexico (AMX). Posadas has declined to comment and it is not clear whether antitrust officials would accept both of the country's major airlines under the control of one owner.
Later, AeroMexico (AMX)'s board said a $151 million bid by a group of Mexican investors represented by Banamex to take a controlling stake in the airline is "reasonable." The carrier, which currently is controlled by government holding company Consorcio Aeromexico, previously said that a $100 million bid by Mexico's Saba family was reasonable. It is unknown how long a decision could take on whether to sell the country's second-largest airline. Banamex, the Mexican arm of Citigroup (TCI), has said its bid is open through October 15 with an option to extend it until November 30. Other bids are possible.
Later, a full-fledged bidding war for AeroMexico (AMX) started, as the Saba family boosted its offer by more than >58% to MEX1.74 billion/$158.8 million, topping the bid valued at more than >$150 million made earlier this month by a group of investors represented by Banamex. Father and son Alberto Saba Raffoul, plus Moises Saba Masri made their original bid valued at about $100 million last month. The carrier currently is controlled by state holding company Consorcio Aeromexico, which has been trying to sell it to private investors since 2005, but has not received what it considers a viable offer. The Mexican government has a 62% stake in Consorcio Aeromexico.
Banamex, the Mexican arm of Citigroup (TCI), this month announced a bid backed by a group of 14 Mexican investors. That takeover offer is open through October 15 with an option to extend it until November 30. The Sabas' new offer is open through October 5.
AeroMexico (AMX) rival Mexicana (CMA) was sold to an investment group led by Grupo Posadas in late 2005 for $165.5 million, plus assumption of liabilities, that brought the total value of the deal to $1.46 billion.
737-752 (35123, XA-CTG), delivery, and 777-2Q8ER (28692, N776AM), ex-Varig (VAR), (ILF) leased.
October 2007: Mexicana (CMA) submitted a takeover bid for AeroMexico (AMX), valued at MEX2.17 billion/$199 million, topping recent bids made by the Saba family and Banamex. AeroMexico (AMX) is controlled by state holding company Consorcio Aeromexico, which is 62% owned by the Mexican government. Consorcio, previously known as Cintra SA, sold Mexicana (CMA) to Grupo Posadas in 2005, but retained AeroMexico (AMX). Bids for the latter, from the Saba family and Banamex, the Mexican arm of Citigroup, remain on the table, with Banamex raising its bid to MEX1.76 billion, slightly exceeding the Sabas' latest offer of MEX1.74 billion. Mexicana (CMA) Chairman, Gaston Azcarraga said combining the country's two largest airlines is in the best interest of the carriers and consumers. "Merging these two companies into one single aeronautical group, will boost their profitability, enabling them to offer reliable transportation alternatives at an attractive price, and guaranteeing job stability for their employees in the long term," he said. "What we are proposing, is a restructuring of the market that will ensure the survival of these two flagship airlines. We want to strengthen them, and we know how to." Mexicana (CMA) said it submitted documentation with its bid, that shows the "domestic market cannot support two flagship airlines," adding: "Faced with growing competition, the best option for the country and users, is a strong aviation group, complemented by more competitive, better-structured low-cost airlines. The number of airlines in the country has doubled since 2001, and the joint market share of Mexicana (CMA) and AeroMexico (AMX) has dropped -47% percentage points since 1990." In the first half of 2007, the two carriers' combined share of the domestic market, fell to 53% from 65%, and is expected to drop below 50% by year end, Mexicana (CMA) said. Low Cost Carriers (LCC)s could see their market share "increase to as much as +36%, once they receive delivery of 25 new airplanes, for which orders have already been placed." "The domestic aviation industry is facing a critical phase, and we estimate the sector will incur losses close to -$500 million in 2007," Azcarraga said. He added that Mexicana (CMA) is "prepared to accept the recommendations of the Federal Competition Commission to ensure the viability of the transaction."
Mexico's Federal Competition Commission rejected Mexicana (CMA)'s bid to acquire AeroMexico (AMX), ruling that a merger of the country's two largest airlines would be unfair to competitors and "unfavorable to consumers." Mexicana (CMA) had put the highest of three bids on the table for AeroMexico (AMX), which is controlled by state holding company Consorcio Aeromexico. The regulatory rejection leaves the wealthy Saba family and Banamex, the Mexican arm of Citigroup, in an apparent bidding war for the carrier, although Mexicana (CMA) insisted that it would forge on with its bid.
Banamex, earlier this month, raised its bid to MEX1.76 billion/$163 million, but the Saba family later boosted its bid to MEX1.8 billion. Mexicana (CMA)'s offer is valued at MEX2.17 billion, but the Competition Commission said that the "transaction would create an entity with significant power in the passenger air transport market, with the ability to unfairly displace competitors and impose prices and conditions unfavorable to consumers." Mexicana (CMA) responded that it would use available "legal resources . . . to preserve our right to acquire" AeroMexico (AMX). Noting that its bid is clearly higher than rival offers, it said a merged carrier would have a 53% domestic market share, that would drop to less than 50% in 2008, and that formidable Low Cost Carrier (LCC) competition would prevent it from becoming a monopoly player. In a statement, Mexicana (CMA) said it could combine the carriers "without affecting consumers . . . To the contrary, [a merger] will foment competition in the national market and strengthen Mexican aviation in the international market."
Shortly after, bidding for AeroMexico (AMX) intensified as both the Saba family and Banamex boosted their rival offers for the carrier and Mexicana (CMA) urged stakeholders not to dismiss its bid, despite a rejection by regulatory authorities on antitrust grounds. Father and son, Alberto Saba Raffoul and Moises Saba Masri, increased their bid to MXN1.89 billion/$174.7 million, while Banamex, the Mexican arm of Citigroup, said the group of investors it is leading, have upped their bid to MXN1.85 billion. But Banamex claimed that its bid actually was more valuable, because in addition to cash, it is including tradable warrants linked to the future value of the carrier, that it said would be worth more than >$42 million in three years. Banamex additionally said it would invest $240 million in the airline within three months of finalizing a purchase. AeroMexico (AMX)'s board said in a statement, that both bids are "reasonable from a financial point of view" and urged stakeholders to make a decision. AeroMexico (AMX) is controlled by state holding company Consorcio Aeromexico, which is 62% owned by various Mexican government agencies. Mexicana (CMA), which saw its bid rejected by the Federal Competition Commission, said in a statement that AeroMexico (AMX)'s board also should have issued an opinion on its offer, which the board declined to do. It said AeroMexico (AMX) shareholders should keep an open mind and that "the resolution by the Federal Competition Commission isn't a final judgment." It has appealed the agency's ruling, but it is unclear what legal recourse Mexicana (CMA) has to stay in the bidding.
Finally, Mexico's government agreed to sell its 62% stake in AeroMexico (AMX) to a group of investors led by Banamex, the Mexican arm of Citigroup, for MXN2.7 billion/$249 million, following an intensifying bidding war. Banamex prevailed over the Saba family, whose final bid of about MXN2.72 billion was rejected because it came in 2 minutes past Wednesday's 5 pm deadline. Banamex's final bid arrived just before the deadline. "We lost," conceded Moises Saba Masri, who has been critical of the government's handling of the process. Banamex appointed Jose Luis Barraza, Chairman of AeroMexico (AMX). Barraza has been President of business development organization, Consejo Coordinador Empresarial, and previously was VP Economic Development for the state of Chihuahua. "We are going to inject $240 million of fresh capital into the company to start to expand routes, frequencies and [acquire] more planes," he said. Banamex has said its investment group includes 14 members. The owners of Grupo Modelo, which produces Corona beer, are believed to be involved. Back-and-forth bidding by Banamex and the Sabas drove up the cost of Mexico's second-largest airline. Competition began in August with the Sabas' offer of about $100 million, well below the eventual sale price. AeroMexico (AMX) rival Mexicana (CMA) was sold to an investment group led by Grupo Posadas in late 2005 for $165.5 million. Assumption of liabilities brought the total value of that deal to $1.46 billion. It is not clear what liabilities Banamex will be taking on, but Moises Saba pointed out that inheriting the carrier's debt was a factor when his family made their initial bid. The remaining 38% of AeroMexico (AMX)'s stock, which is publicly traded, jumped in per-share value by more than >30% as the bids escalated in recent days.
November 2007: Mexico's flag carriers AeroMexico (AMX) and Mexicana (CMA) have seen their share of the domestic market decline from 84% to 50% since 2000, Mexicana (CMA) Chairman, Gaston Azcarraga said at the (ALTA) conference in Cancun. Azcarraga, who also is Chairman of the airline's parent company Grupo Posadas, noted that the country is served by 14 domestic airlines - - "that's where the problem starts," he told attendees - - and that "if this industry is going to make a profit, eventually it has to come through consolidation." Mexicana (CMA) tried to help that process along by bidding for AeroMexico (AMX) last month, but the competition authority rejected its bid.
Turning to Mexicana (CMA), Azcarraga noted that the airline's flight attendants (CA) average just 59 hours of flying a month. "How can you be successful in any industry if part of your workforce works [only] 59 hours a month?" he asked. The carrier has taken the flight attendant (CA) union to court over the issue. It won the first round but lost the second on appeal. It expects its counter-appeal to be upheld. He also said that Grupo Posadas got into the airline industry "by chance more than anything." He called the industry "exciting, but extremely, extremely complicated."
757-2Q8 (26272, N805AM), returned to (ILFC) (ILF).
December 2007: 737-752 (35124, XA-CYM), delivery. MD-88 (53174, N168PL), leased to Austral (ALA).
February 2008: MD-88 (49929, XA-AMV; 53175, N169PL), leased to Austral (ALA). MD-88 (49764), returned to Polaris.
March 2008: 757-29J (27203, N703AM), returned to (ILFC) (ILF), and leased to Eos (EOS).
April 2008: The Indian government announced the signing of aviation services agreements with Mexico and Chile.
MD-88 (49765, N162PL), returned to Polaris.
June 2008: Aeromexico (AMX) reached a labor agreement with (ASSA), which represents nearly 1,500 cabin staff (CA), including a +4.5% salary increase and concessions allowing the airline "to have access to greater crew availability," it said. The union had threatened to strike and the deal was reached "after several days of intense negotiations," (AMX) said.
2 MD-83s (49397, N838AM; 49659, N583MD), and MD-87 (49389, XA-TXC), transferred to Aeromexico (AMX) Travel (new charter subsidiary) - - SEE ATTACHED PHOTO - - "AMX-MD-87-JUN08."
July 2008: Aeromexico (AMX) provides scheduled, jet airplane services to domestic destinations, as well as scheduled international services to Europe, South America, and the USA.
Employees: 6,773 (including 818 Flight Crew (FC); & 1,469 Cabin Attendants (CA)).
(IATA) Code: AM - 139. (ICAO) Code: AMX (Callsign - AEROMEXICO).
Parent organization/shareholders: Consorcio Aeromexico (AMX) (99.26%).
Airline Subsidiaries/shareholdings: Aeromexico Connect (100%).
Alliances: SkyTeam (STM) Alliance; Aeromar (TRO); Air Europa (ARE); Continental Airlines (CAL); Copa Airlines (COP); Japan Airlines International (JAL); (LAN) Airlines; & Mexicana (CMA).
Main Base: Mexico City Lic Benito Juarez International Airport (MEX).
Hubs: Monterrey Gen Mariano Escobedo International airport (MTY); Guadalajara airport (GDL); & Hermisillo airport (HMO).
Domestic, scheduled destinations: Acapulco; Aguascalientes; Campeche; Cancun; Chihuahua; Ciudad Del Carmen; Ciudad Juarez; Ciudad Obregon; Ciudad Victoria; Colima; Cozumel; Culiacan; Durango; Guadalajara; Guerrero Negro; Hermosillo; Huatulco; Ixtapa/Zihuatanejo; Jalapa; La Paz; Lazaro Cardenas; Leon/Guanajuato; Loreto; Los Mochis; Manzanillo; Matamoros; Mazatlan; Merida; Mexicali; Mexico City; Minatitlan; Monterrey; Morelia; Oaxaca; Piedras Negras; Poza Rica; Puebla; Puerto Vallarta; Queretaro; Reynosa; Salina Cruz; San Jose Cabo; San Luis Potosi; Tampico; Tapachula; Tepic; Tijuana; Torreon; Uruapan; Veracruz; Villahermosa; & Zacatecas.
International, scheduled destinations: Atlanta; Barcelona; Boston; Chicago; Houston; Las Vegas; Lima; Los Angeles; Madrid; Miami; New York; Oakland; Ontario; Orlando; Paris; Phoenix; Portland; Punta Arenas; Sacramento; Salt Lake City; San Antonio; San Diego; San Jose; San Salvador; Santiago; Sao Paulo; Tucson; & Vancouver.
12 orders Embraer E190, for regional subsidiary, Aeromexico Connect.
August 2008: Embraer and Aeromexico Connect (AMX) signed a long-term service agreement supporting the carrier's growing fleet of ERJ-145s and E190s. The contract covers more than >500 part numbers and includes landing gear overhauls on the EMB-145s.
November 2008: Aeromexico (AMX) was No 1 Mexican carrier in September with total 376,580 (-9%) passengers.
SEE NEW LIVERY ON PHOTO - - "AMX-767-NOV08."
January 2009: AeroMexico (AMX) will launch daily flights from Mexico City to Toronto and San Francisco, both on February 2, and to Denver on March 2.
767-3YOER (24947, XA-MAT), Babcock & Brown (BBB) leased.
February 2009: MD-87 (49413), returned to Pegasus (PSS).
March 2009: AeroMexico (AMX) launched daily, Mexico City - Toronto service aboard a 737-700. Flights to Montreal are scheduled to begin April 2. Both routes are already flown by (AMX)’s archrival Mexicana (CMA), while Air Canada (ACN) flies nonstop to Mexico City from Toronto but not Montreal.
April 2009: AeroMexico (AMX) launched 2x-weekly, Mexico City - Montreal service aboard a 737-700.
June 2009: AeroMexico (AMX) will launch 6x-weekly, Mexico City - New Orleans service on July 7.
737-752s (34297; 34928), returned to (GEF). MD-87s (49641; 49671; & 49780), WFU; 49641 parted out, 49671; last (AMX) MD-87, and 49780 sub-leased to Macair Jet (MCJ) as (LV-BZH).
July 2009: 767-383 (24849, XA-MIR), returned to lessor. MD-87 (49706, XA-TWT), sold to Andes Lineas Aereas.
September 2009: Aeromexico (AMX) reportedly said it will permit passengers to make calls with their mobile phones following the Mexican government's decision last week to lift the ban on in-flight use in domestic airspace, although flight attendants (CA) will be allowed to suspend the privilege if necessary.
INCDT: An AeroMexico (AMX) 737 hijacking ended without further incident in Mexico City after 5 to 8 suspects were taken into custody. The suspects claimed they were carrying a bomb on board the flight originating in Cancun and reportedly demanded to speak with Mexican President, Felipe Calderon. The 112 passengers were freed but the crew remained on the airplane for some time. There were no explosives on board and the suspects never entered the cockpit, according to reports.
October 2009: Gol (GOT) and AeroMexico (AMX) signed a code share agreement that will allow (AMX) to add its code on Gol (GOT) flights from Sao Paulo to 6 Brazilian destinations.
737-752s (33784, XA-BAM; 33788, XA-GAM), sold to Sojitz Aircraft Leasing and leased back re-registered as (N784XA) and (N788XA).
December 2009: AeroMexico (AMX) (CEO), Andres Conesa told reporters in Mexico City this week that (AMX) expects a -3% fall in passenger numbers this year compared to the 10.5 million it posted in 2008 but a +5% year-over-year increase in 2010. It will relaunch its Shanghai service in March and is considering new flights to Atlanta, Washington, Costa Rica, and Colombia, according to Dow Jones.
737-752 (34299, XA-LUN), returned to (CIT) Group (TCI).
February 2010: Messier-Bugatti has begun retrofitting 36 AeroMexico (AMX) 737-700s/-800s with carbon brakes. It said the program marks the "1st actual replacement" of steel brakes on in-service 737NGs.
April 2010: Sabre Travel Network was selected by AeroMexico (AMX) to provide its SabreSonic Customer Sales and Service solution and "several" of Sabre's revenue management and accounting solutions from the Sabre AirVision Marketing and Planning suite including AirVision Competitive Revenue Management Service, Group Management and Revenue Manager and its Group e-Commerce portal.
737-8CX (32359, N359AM), (MASL) Ireland leased.
June 2010: International Communications Group (ICG) was selected by AeroMexico (AMX) to install its NxtLink ICS-120A communications systems offering flight deck voice and datalink services over the Iridium satellite network on five of its 767-200 and 767-300 series airplanes. (ICG) said the systems support (ACARS), (CPDLC) and other (FANS1/A) messaging. The agreement also covers the associated Configuration Identity Modules and Spectralux Avionics Dlink+ all-in-one (ACARS) system, it said.
Air France Industries (AFI) and (KLM) Engineering & Maintenance (E&M) reached a two-year renewal of its contract with AeroMexico (AMX) to maintain its fleet of 5 777s.
July 2010: The (FAA) on July 30 determined that Mexico is not in compliance with (ICAO) safety standards, causing the agency to downgrade the nation to a Category 2 rating. The rating change means Mexican carriers cannot establish new service, although existing flights will not be affected. The downgrade follows an assessment of Mexico’s civil aviation authorities. “While Mexico has been responsive to the (FAA)’s findings and has made significant improvements in recent months, it was unable to fully comply with all of the international safety standards,” the (FAA) says. “However, under the leadership of Director General, Hector Gonzalez Weeks, Mexico continues to make progress.”
The (FAA) says it will work with the Mexican government and provide technical assistance to help restore its Category 1 rating. According to the (FAA), a Category 2 rating means a country either lacks laws or regulations necessary to oversee air carriers in accordance with international standards, or that its civil aviation authority is deficient in one or more areas, such as technical expertise, trained personnel, record-keeping or inspection procedures.
October 2010: Aeromexico (AMX) will become the sole USA sales representative next month for SkyTeam (STM) alliance partner Air Europa (ARE). With this strategic alliance, (AMX) will be (ARE)’s sole contact for travel agencies, wholesalers and on-line tour operators. (AMX) will also promote (ARE) in North America under the
Air Europa (ARE) operates nonstop service between its base at Madrid Barajas Airport and New York Kennedy International Airport, a route launched about a year ago, and since March has operated a nonstop to Miami International Airport. This accord coincides with an expansion of (AMX)'s North American schedule, about 3 months after the collapse of the country’s largest international operator, Mexicana (CMA), significantly reduced capacity to the USA and Canada.
As part of the expansion, Aeromexico (AMX) on November 20 plans to resume operations between Ontario International Airport in California and Guadalajara International Airport with a seasonal daily service, and from December 15 it expects to resume seasonal flights to Denver International Airport from its Mexico City hub. Both of these routes are possible despite the USA (FAA) safety downgrade imposed in July because authority had previously been granted to the airline, confirms the (FAA). The downgrade does not allow Mexican airlines to add new service to the USA until the country’s rating returns to Category 1.
The upgraded schedule also includes increased frequencies for existing USA markets that boost Chicago, Los Angeles, Miami, and New York to twice daily, and Las Vegas to 2x-daily from Thursday to Sunday. The new frequencies should begin December 6.
Lufthansa Technik (DLH) (LTK) signed a 10-year component services contract with Aeromexico (AMX) under which it will provide (LTK) Total Component Support for (AMX)'s fleet of 34 737-700s/-800s.
November 2010: Aeromexico (AMX) will launch Mexico City service to New York (JFK) (daily), Las Vegas (4x-weekly), Los Angeles (daily), Miami (daily) and Chicago O'Hare (daily) beginning this month. It will increase frequencies to the cities on December 6 and will resume 3x-weekly, Denver - Mexico City service December 15 - April, as well as daily, Ontario, California - Guadalajara service on November 20. (AMX) will increase Mexico City service to Barcelona (3x-weekly to 4, on December 6, aboard a 767), and Sao Paulo (7x-weekly to 9, on November 21, aboard a 777).
3 737-8K2s (28376, PH-HZD; 28377, PH-HZE; 28378, PH-HZF), TransAvia (TAV) leased until April. 767-25DER (24733, N473AG), ACG Acquisitions leased.
December 2010: Mexico's aviation safety rating was raised to Category 1 by the USA (FAA) just 4 months after the agency downgraded the country to Category 2 for being "unable to fully comply with all of the international safety standards" set by (ICAO).
The (FAA) said a November review of Mexico's civil aviation authority led it to conclude that the nation now complies with (ICAO) standards. "Mexico has made significant progress," the agency stated, adding that the (FAA) "will continue to provide technical assistance to support and maintain the changes the civil aviation authority has made."
The (FAA) never explicitly explained where Mexico had fallen short, saying broadly that a Category 2 rating means a country "is deficient in one or more areas, such as technical expertise, trained personnel, record keeping or inspection procedures."
The change is meaningful for Mexican airlines, which were barred from adding service to the USA or code sharing with USA carriers while the country was rated Category 2.
Aeromexico (AMX) said it has reached agreement with its pilots (FC) on a new labor pact that will allow for growth and increases in productivity. Though details were not released, Chairman, Jose Luis Barraza said, "This agreement with the pilots (FC) is the most important structural change (AMX) has made in terms of labor agreements and will allow (AMX) a sustainable growth in the immediate future."
(CEO), Andres Conesa added that "this agreement will allow us to implement an ambitious growth program with a close to $1 billion investment in 25 airplanes in the coming months, which will create new jobs and help revitalize the airline industry in Mexico."
Peru and Mexico have agreed to expand their bilateral air accord to include a significant number of new frequencies available for airlines from both countries, as well as new city pairs. The Peruvian Ministry of Transport & Communications has confirmed that the number of frequencies for flights between both countries will be increased from 13 to 56 weekly frequencies for each side. The agreement also includes a number of new cities to which flights between both countries can be operated in addition to Lima and Mexico City, namely Toluca and Cancun in Mexico, and Cusco and Arequipa in Peru, although a ministry source says that the "spirit of the agreement" calls for authorizing "any route" between both countries.
Any carrier of either country can use the available frequencies and both sides have committed to speed up the administrative authorization process. Additionally, the agreement introduces the full liberalization of air cargo services and gives full 5th freedom rights for flights with origin and/or destination within Latin America.
Currently, Aeromexico (AMX), (Lan) Peru (LPU) and (Taca) Peru (TNM) offer flights from Lima to Mexico City. (TNM) has already said that it plans to grow its 4 weekly frequencies between Lima and Mexico operated with A319s to daily flights, while (LPU) and (AMX), which are operating 767 and 737-800 equipment, respectively, have yet to announce their plans for the route.
January 2011: 737-700 and 737-800 narrow bodies based at Aeromexico (AMX)’s Mexico City hub should see significant additions to their number in the next several years, and the Engineering division that supports them is ramping up for the change now. Pointing to (AMX)’s “aggressive” growth plan, David Nakamura, Senior VP Maintenance & Engineering, says Information Technology (IT) upgrades and increased concentration on Mexico City operations will be imperative to managing that growth. Nakamura says (AMX) already has begun preparing for the 787, 5 of which it has on order.
(AMX) announced plans to lease 3 787-8s from International Lease Finance Corporation (ILF) in June 2006, and it bolstered that with an order for 2 more 787-8s of its own in November 2006. Nakamura says that a lot remains to be done support-wise, even though (AMX) does not expect to receive the airplane until next year. “There are many preparations to be made during 2011, especially in the area of (IT) infrastructure and maintenance and engineering process redesign,” he says. “(IT) infrastructure is definitely an area of interest. We need to update our Maintenance Repair & Overhaul (MRO) (IT) and consider the coming 787s to be an excellent opportunity because this airplane demands new technologies and processes.” (AMX) also may add pre-owned airplanes to its fleet. Nakamura says it plans to make adjustments to its core fleet of 737-700s and 737-800s, which he describes as “a model with high demand and less availability in the market.” However, the fleet changes will put added pressure on maintenance and engineering to retain its dispatch reliability. “We may be bringing in airplanes with different configurations, and this increases the complexity of maintenance and operation,” he says. “This also demands some additional investment, be it in standardization efforts or additional inventory.” These changes also may bring opportunities to widen (AMX)’s revenue from 3rd-party maintenance. This work primarily consists of airframe heavy maintenance, Nakamura says, but the future may bring new production lines. “We have a solid performance history in this area but have been constrained by the lack of additional hangar space [in Mexico City],” he says. “We will now have the possibility of expanding this operation.”
Delta Air Lines (DAL) announced it will reinstate code share flights with SkyTeam (STM) alliance partner, Aeromexico (AMX) following the USA Federal Aviation Administration (FAA)'s decision to upgrade Mexico's federal civil aviation authority to Category 1. The reinstated code sharing will connect (DAL) customers between 20 Mexican and nine USA airports on more than >125 (AMX) and Aeromexico Connect flights.
(AMX) added a 2nd daily service to its daily, San Antonio - Mexico City route.
737-73V (32423, N423AM), Macquarie leased.
March 2011: Guangzhou Aircraft Maintenance and Engineering Company (GAMECO) received a contract from AeroMexico (AMX) covering "C" maintenance checks, implementation of service bulletins (SB)s/Engineering Orders (EO)s, pylon modifications and airplane cleaning on 4 767-200 and 767-300 airplanes. Work has begun and is slated to be completed by September.
May 2011: Aeromexico (AMX) leased 2 737-800s from Air Lease Corporation (ALE). The leases run until mid-2017.
June 2011: Aeromexico (amx) will launch daily, Chicago O'Hare - Monterrey - Guanajuato Embraer E190 service on July 4.
(AMX) chose "Discover the World Marketing" to serve as its General Sales Agent (GSA) in Bosnia, Herzegovina, Croatia, Czech Republic, Denmark, Finland, Hungary, Iceland, Macedonia, Montenegro, Norway, Poland, Serbia, Slovakia, Slovenia, Sweden, and Ukraine.
(AMX) migrated its reservations and airport check-in systems to a Sabre platform.
August 2011: Aeromexico (AMX) increased 2x-weekly, Las Vegas - Monterrey service to 8x-weekly. (AMX) will increase 2x-weekly, Brownsville - Monterrey service to 3x-weekly on September 21.
Delta Air Lines (DAL) and Grupo Aeromexico entered into a commercial alliance under which (DAL) will invest $65 million in Aeromexico (AMX) in exchange for ordinary shares in the Mexican airline. Benefits will include network-wide code sharing for all (DAL) and (AMX) flights between the USA and Mexico, expanded code share flights within the carriers' domestic networks and to international destinations, and co-located airport facilities.
(DAL) (CEO), Richard Anderson said, "By forming an exclusive long-term commercial partnership, we will leverage the strengths of our 2 networks to provide expanded customer benefits and build the foundation for a joint venture (JV) to better serve the USA and Mexico marketplace."
The 2 carriers will also expand their existing Maintenance Repair & Overhaul (MRO) agreement and will open a new facility in the 2013 3rd quarter. "The (MRO) agreement will represent significant savings for our maintenance group, while continuing the extremely high quality work we receive from Aeromexico (AMX)," (DAL) President, Ed Bastian said. "The (MRO) facility is a natural next step for the two airlines, as we leverage the full benefits of our alliance."
October 2011: Aeromexico (AMX) began using 15% jatropha-based biofuel on a weekly flight from Mexico City to San Jose, Costa Rica. (AMX) says it will be running the "vuelo verde" at least through the end of the year, while evaluating adding more such flights if the bio-jet can be made available by Aeropuertos & Servicios Auxiliares, the government’s airport operator and fuel supplier. The Mexican government has committed to an ambitious goal of replacing 1% of the country’s jet fuel use with biofuel by 2015.
Aeromexico (AMX) started 2x-weekly, Guadalajara - Las Vegas service and daily, Mexico City - Caracas 737 service.
November 2011: 737-8K2 (34169, PH-HZD), TransAvia (TAV) wet-leased.
December 2011: Aeromexico (AMX) has begun 3x-weekly seasonal flying from Zacatecas to Chicago O'Hare with E190s.
January 2012: Grupo Aeromexico (AMX) has posted a record increase of 20% passenger boardings in 2011, up to 14.3 million. The international market grew +42% while domestic traffic increased +14%.
The consolidated results of the two group airlines, Aeromexico (AMX) and Aeromexico Connect, also show a +21% increase in (RPK)s, of which 31% is international boardings and 9% on the domestic side.
(ASK)s increased +20% system wide. Passenger load factor grew 2.5% points, to 76.9% LF in the domestic market, while the international market faced a -1.5% point decrease to 79.5% LF, resulting in a systemwide +0.5 LF load factor increase.
February 2012: In January, +11% (RPK) traffic (international (RPK)s +15%), and +7% (ASK) capacity.
Grupo Aeromexico (AMX) posted a 2011 net profit of +MXP2.08 billion/+$162.3 million on strong revenue gains as the benefits to (AMX) stemming from the demise of rival Mexicana (CMA) in August 2010 become apparent.
(AMX)'s 2011 net earnings were down -10.8% from a +MXP2.33 billion net profit in 2010, a dip the company blamed on nonrecurring items. Full-year revenue surged +27.5% to MXP35.81 billion, enough to mostly offset a +31.1% rise in expenses to MXP28.7 billion (including a +54.2% increase in aircraft fuel costs). Operating income was MXP7.11 billion, up +14.8% over 2010.
(AMX)'s full-year traffic increased by +21% year-over-year to 22.64 billion (RPK)s on +20% growth in capacity to 28.99 billion (ASK)s, producing a load factor of 78.4% LF, up +0.5 point. Yield rose +3.1%.
(AMX) (including regional affiliate Aeromexico Connect) took delivery of 4 Embraer E190s, 6 737s and 1 767 last year. Its fleet stood at 105 airplanes at year end, 8 more than December 31, 2010.
Total 2011 passenger revenue was 44% comprised of domestic sales, while 56% was generated from international operations. (AMX) flies to 73 destinations, comprising 42 in Mexico, 16 in the USA and Canada, 10 in Latin America, 3 in Europe and 2 in Asia.
March 2012: Avianca (AVI) and (TACA) (TAC) have signed a code share agreement with Aeromexico (AMX) under which they will "explore opportunities that will allow the airlines to supplement their network of routes." The airlines are now working on final details; the code share operation between Avianca (AVI) and Aeromexico (AMX) is scheduled to begin in the 1st half of 2012. The code share between (TACA) (TAC) and Aeromexico (AMX) is scheduled to begin during the 2nd half of the year.
Aeromexico (AMX) increased 21x-weekly Mexico City - New York (JFK) service to 26x-weekly.
(AMX) (which has leased 3 787-8s from International Lease Finance Corporation (ILFC) and ordered 2 from (TBC)) has agreed to lease an additional 2 new 787-8s from (ILFC) as part of its previously announced international expansion plan to add 20 new airplanes.
The 2 airplanes will be equipped with (GEnx) engines and are scheduled for delivery in the 1st half of 2014.
"The addition of these 2 787 airplanes to our current fleet of 5, 2 that we ordered from Boeing (TBC) and 3 previously leased from (ILFC) is great news for Grupo Aeromexico; it is part of our expansion plan to service all our international markets,” Grupo Aeromexico (CEO), Andres Conesa said. The airplanes will be deployed on long-haul routes and will replace (AMX)’s 767-200ER airplanes.
Aeromexico (AMX) was (ILFC)’s 1st customer,” (ILFC) (CEO), Henri Courpron said.
April 2012: Grupo Aeromexico (AMX) has reported 1st-quarter consolidated net income of +MXP $135 million/+$10.4 million, down -49% on the year-ago period. Revenue increased +17% to a record MXP$9.2 billion/$701 million.
(AMX) said the results were affected by a peso depreciation of 8%. Revenue increases were mainly due to a +16% improvement in passenger revenues and a +106% increase in cargo revenues.
First-quarter operating profit is +MXP$452 million, down -29% from the prior-year quarter.
Passenger traffic rose +9% to 5.5 billion (RPK)s on a +7% increase in capacity to 7.2 billion (ASK)s, producing a load factor of 76.9% LF, up +1.4 point. (CASK)s increased +13%. Yield increased +0.5% to MXP$1.4.
According to (AMX), airplane leasing costs increased +15% to MXP $906 million. (AMX) (which intends to lease 3 787-8s from International Lease Finance Corporation (ILFC) and ordered 2 from Boeing (TBC) agreed in March to lease an additional 2 new 787-8s from (ILFC) as part of its previously announced international expansion plan to add 20 new airplanes. The two airplanes, to be equipped with (GEnx) engines, are scheduled for delivery in the 1st half of 2014.
(AMX) operated +8 more airplanes in the period and took delivery of two Embraer E190s as part of its fleet acquisition plan. (AMX) has 106 airplanes in its fleet, comprising 4 777s, 7 767s, 44 737s, 38 Embraer ERJ-145s and 13 E190s.
Aeromexico (AMX) will launch daily, Mexico City - Washington Dulles 737 service on May 21. (AMX) and (TAM) Airlines (TPR) have reached a code share agreement to operate flights between Mexico City and Sao Paulo as well as connections to destinations in Brazil and Mexico, which launched April 23.
May 2012: AeroMexico (AMX) launches services to Washington Dulles Airport from Mexico City. (AMX) connects Mexico City and San Salvador.
AeroMéxico Connect will add 3 ex-Republic Airlines E170s to complement its fleet of 14 E190s and 38 ERJ-145s.
June 2012: Aeromexico (AMX) said that Delta Air Lines (DAL)'s $65 million investment in (AMX), 1st revealed last year, has been authorized by relevant government officials, enabling (DAL) to take a 4.17% stake in (AMX).
(DAL) announced its intention to invest in (AMX) last year as part of its overall push into the Latin American market. It also plans to similarly invest in Brazil’s GOL (GOT).
“This is the 1st time a global carrier buys equity in a national Mexican airline,” (AMX) said. (CEO) Andres Conesa added, “This undoubtedly reflects (DAL)’s trust in our company and will allow us to serve a larger number of passengers through our global network.”
The carriers, both members of the SkyTeam (STM) alliance, already collectively offer flight tickets to 93 code share destinations. The two companies also plan to jointly open new Maintenance Repair & Overhaul (MRO) facilities in Mexico next year.
Aeroméxico (AMX) will invest $30 million on a new maintenance facility at its Mexico City hub, which is scheduled to open in September, (CEO) Andrés Conesa told local media.
In addition, (AMX) will build a Maintenance Repair & Overhaul (MRO) facility in a joint venture with Delta Air Lines (DAL); each carrier will invest an estimated $20 million.
Construction of the 2nd facility is scheduled to begin in the 3rd quarter and should be completed by the 2013 3rd quarter. The location has not yet been determined but Guadalajara seems to be the favored destination. Monterrey, Toluca and Querétaro are also being considered.
(DAL) acquired a 4.17% stake in Grupo Aeromexico´s capital stock earlier this month. The (MRO) station joint investment is part of a broader alliance both carriers agreed to last year. Together, the two carriers offer 93 code share destinations, representing 733 daily flights.
(DAL) is working to improve its presence in Latin America through alliances and investments. (DAL) signed a long-term alliance with (GOL) Linhas Aéreas Inteligentes (GOT) with a $100 million investment, and code share agreements with Aerolíneas Argentinas (ARG).
(AMX) has launched flights from Cancun (CUN) on Mexico’s Caribbean coast to Bogotá (BOG), the capital of Colombia. Flights will depart Cancun at 01:55 3x-weekly on Tuesdays, Thursdays and Sundays using 737s. The return flight departs Bogotá at 07:00. The route is already served 2x-weekly by Copa Airlines (COP). (AMX) already serves Bogotá daily from its main base at Mexico City.
Aeromexico (AMX) will launch daily, Mexico City - Atlanta Embraer E190 service on July 1.
July 2012: Grupo Aeromexico (AM) reported 2nd-quarter net income of +MXP$153 million/+$11.8 million, down -73.8% from a +MXP$584 million profit in the year-ago period. (AMX) said that “despite a +14% increase in peso-denominated fuel prices and a -15.5% year-over-year exchange rate depreciation,” it reached the “2nd-best quarter in our history.”
This is the first report that includes the consolidated results for Aeromexico (AMX) Cargo, (AMX)’s wholly owned subsidiary that was incorporated in January.
The company also credited Latin America’s regional strength for the results. (AMX) reported a +7% growth in international boarding passengers and a +1% growth in domestic boarding passengers. It added two new domestic destinations (Chetumal and Manzanillo) out of Mexico City (MEX) and 2 new Latin American regional routes ((MEX) - San Salvador and Bogotá - Cancún) to its network.
Revenue rose +15.2% to MXP$9.9 billion, while total expenses increased +20.1% to MXP$8.1 billion, producing an operating profit of +MXP$744 million, down from a +MXP $981 million operating profit in the prior-year quarter. Traffic rose +4% to 5.7 billion (RPK)s on a +7% increase in capacity to 7.4 billion (ASK)s, producing a load factor of 76.6% LF, down -2.5% points. (RASK)s increased +4.7% to MXP$1.3 as total (CASK)s increased +12.1% to MXP$1.2, and (CASK)s ex-fuel was MXP$0.79 cents, up +11.9%.
A major highlight in the period was Delta Air Lines (DAL)’s acquisition of 4.17% of Grupo Aeromexico (AMX)’s outstanding stock, completed in early June.
Aeromexico (AM) announced it has signed a letter of intent (LOI) for up to 100 Boeing airplanes (a mix of 90 737 MAX 8s and 9s, as well as 10 787s). When finalized, the order will be worth $10.8 billion at list prices.
The 737 MAX airplanes will be powered by (CFM) International (LEAP-1B) engines — the sole source engine for the 737 MAX. (CFM) said the list value of the (LEAP)s was $2.25 billion. Deliveries of the 737-8 MAX airplanes will begin in 2018, according to (AMX).
The 787s will be powered by (GE) Aviation (GEC) (GEnx-1B) engines. (GEC) said the total list value of the deal was $400 million. The Rolls-Royce (RRC) (Trent) is also available for the 787.
Grupo (AMX) (CEO), Andres Conesa said the order “will allow us to maintain a flexible structure to grow according to market conditions.”
The commitment for 100 airplanes is in addition to a package of 10 Embraer E190s and 10 leased 737-800s (AMX) announced in 2011, as well as 9 787-9s scheduled to begin deliveries in summer 2013. (AMX) has already leased 5 787-8s from International Lease Finance Corp (ILFC) and ordered 2 from Boeing. In July, it announced it would receive $171 million in Export-Import Bank (Ex-Im) financing to support the acquisition of the 737s.
August 2012: Grupo Aeromexico (AMX) reported a +2.9% increase in (RPK)s in July and a +7.2% growth in (ASK)s. Load factor decreased -3.5% points to 83.4% LF.
Systemwide, (AMX) carriers posted an (RPK) growth of +4.5% in the domestic market and +2% in the international market. (ASK)s grew +9.3% on the domestic side and +5.8% on the international side. Load factor was 80.3% LF for domestic operations and 85.4% LF for international operations.
From January to July, (RPK)s grew +6% system wide and (ASK)s increased +7.1%. Load factor was 77.8% LF, down -1.1% points.
Grupo Aeromexico (AMX) said it has initiated discussions with Aimia Inc, related to Aimia’s intention to increase its equity participation in Grupo Aeromexico’s subsidiary and independent business unit, Premier Loyalty & Marketing, (S.A.P.I. de C.V.). The unit is also the owner and operator of loyalty program “Club Premier.” The parties will seek to reach an agreement by the end of the year.
Mexican airlines saw a +11.2% increase in domestic boardings in the 1st half of 2012, to 13.2 million passengers. The 5 Mexican carriers that operate international services saw traffic increase +31.4% to 2.6 million passengers.
According to the Dirección General de Aeronáutica Civil, Grupo Aeromexico (Aeromexico (AMX) and Aeromexico Connect) led domestic boardings with a 39% market share and 5.2 million boardings, followed by Interjet (AAE) with a 22% market share and 3.2 million boardings passengers.
Volaris (VLS) was next with 2.6 million boarding passengers, up +22.7%, followed by VivaAerobus (VVS) with 1.5 million, Magnicharters (MAM) with 402,332 boarding passengers, and Aeromar (TRO) with 267,031 passengers.
On the international market, Grupo Aeromexico boarded 1.8 million passengers, Interjet (AAE) 291,357; VivaAerobus (VVS) 60,424; and Aeromar (TRO) boarded just 119 international passengers.
Aeromexico (AMX) launched daily, Monterrey - Chicago O’Hare service on August 21.
Mexico is advocating for its neighboring countries (Belize, El Salvador, Honduras and Guatemala) to agree on an "open skies" policy to jointly market the leisure destination known as Maya World.
Under open skies, participating countries would benefit where local carriers operate 5th, 6th and 7th freedom rights in the region, linking city pairs such as Tikal - Cancún and Monterrey - San Salvador.
A spokesperson for Mexico’s State of Quintana Roo told local media that open skies would bring air fares down and the number of visitors up to 18% to the region within 2 years.
If an agreement is reached, VivaAerobus (VVS) said it could be ready to launch Cancún - San Salvador services by year end.
(CIT) Aerospace (TCI) will lease 2 new (GEnx-1B70)-powered 787-8s to Aeromexico (AMX), with deliveries scheduled in 2015 and 2016.
September 2012: On September 3rd, AeroMexico (AMX) launched services on the commuter route from Mexico City (MEX) to Querétaro (QRE), located just 175 km to the north-west of the Mexican capital. 20 weekly departures are now offered on the route, all of which will be operated with ERJ-145s. There is no competition on the route.
Grupo Aeromexico (AMX) and Delta Air Lines (DAL) signed a memorandum of understanding (MOU) to build an airplane Maintenance Repair & Overhaul (MRO) facility in Queretaro, Mexico.
The companies said the new facility, to be jointly operated, will take over work now being done in Guadalajara and “expand (MRO) capabilities.” According to (AMX)/(DAL), the new facility’s heavy maintenance capacity will be seven airplanes simultaneously.
(DAL) owns 4.17% of (AMX). Financial details regarding the Queretaro (MRO) facility were not disclosed, but (AMX)/(DAL) said each will invest equally.
(DAL) President, Ed Bastian said that “efforts now move to begin constructing this facility that will usher in lower maintenance costs.” (AMX) (CEO) Andres Conesa said the facility “will consolidate and complement the heavy maintenance and overhaul services both carriers have offered at the Grupo Aeromexico maintenance base in Guadalajara over the last 6 years.”
Grupo Aeromexico posted a slight +0.6% increase in traffic (RPK)s for August, against a +6.1% growth in capacity (ASK)s. Load factor decreased -4.5 points to 75.4% LF.
(RPK)s increased +2.3% in the domestic market, but dipped -0.5 points internationally. International and domestic (ASK)s grew +4.4% and +8.7%, respectively. Load factor decreased -4.9 points in the domestic market and -4.1 points in the international market.
The company reported that during August the “temporary closure of runways to carry out maintenance work” at its Mexico City hub resulted “in the cancellation of over >400 flights, equivalent to 1.7 days of operation.”
For the 1st 9 months of the year, Grupo Aeromexico boarded 9.9 million passengers, up +4.9%. International boardings grew +7.8% and domestic boardings rose +3.95%.
Panasonic Avionics has a new 10-year contract to provide technical support services for (AMX)’s fleet of 737-800 (BSI) airplanes. Panasonic said the contract requires it to provide unlimited spares and repairs for a total of 10 737-800 airplanes equipped with Panasonic’s eX1 in-flight entertainment system (IFE) system.
The ex1 is an Ethernet-based (IFE) system that uses a server-network-client architecture to deliver a 1,000 Mbps network to passengers.
October 2012: The (AMX) Group took delivery of 2 Embraer E190s, 2 E170s and 2 737-800s in the period. It also announced a letter of intent (LOI) with Boeing (TBC) to buy up to 90 737-8 Max and 10 787-9s in an estimated $11 billion deal.
November 2012: Mexico’s domestic air traffic grew +9.1% in September year-over-year, while international traffic increased +6.6%, according to the Director General of Civil Aviation.
Grupo Aeromexico (AMX) was the domestic market leader with a 37% share, followed by Interjet (AAE) (24.2%), Volaris (VLS) (20%) and VivaAerobus (VVS) (13.4%).
In the international market, Aeromexico (AMX) leads Mexican carriers with an 18% market share, followed by Volaris (VLS) at 5.4%. Systemwide traffic grew +8%.
(AMX) (CEO), Andres Conesa has confirmed that (AMX)'s largest shareholder Citigroup is considering selling the 37% it holds in (AMX) as part of a general strategy to sell assets outside the banking and finance sectors. It had acquired its stake back in 2007.
Aeromexico (AMX) resumed flights on the route from Mexico City (MEX) to Dallas/Fort Worth (DFW) on November 5. The 1,500 km trans-border route was previously operated by (AMX) with varying frequencies until it was eventually dropped in January 2006. The relaunched operation involves 2x-daily services, and sees MD-80s being replaced with E190s. Competition on the route comes from American Airlines (AAL), which operates 42x-weekly flights between the Texan city and the Mexican capital.
Boarding passengers keep growing in Mexico. The National Air Transport Chamber (CANAERO), an independent think tank set up by different players in the air transport industry, estimates Mexico is on track to break all records this year for the number of passengers carried. The organization foresees more than >55 million passenger boardings in Mexico this year, up at least +3% compared to the previous breaking record year of 2008. Of this total, 51% is estimated to correspond to the domestic market and 49% to the international market.
In the first half, domestic traffic grew +11.2%, while international traffic increased +7.3%. (CANAERO) said the increase in frequencies and fleet expansion are the main causes of industry growth. All together, local carriers will end the year with a total fleet of 247 airplanes, up +8% year-over-year.
December 2012: AeroMexico (AMX) inaugurated services on the 8,900 km route from Mexico City (MEX) to London Heathrow (LHR) on December 14. 3x-weekly flights are offered on the route and operated using a 767. British Airways (BAB) provides competition on the route – also with 3x-weekly frequencies. Andrés Conesa, (AMX)’s Director General, said of the new launch: “It is a great achievement, but also great responsibility for us, given the new route’s importance to the Mexican economy.”
January 2013: Whether Mexicana DE Aviacion (CMA) finally emerges from bankruptcy protection and resumes operations is the story to watch in Mexico this year. Newly inaugurated Mexican President, Enrique Pena Nieto vowed on the campaign trail to resurrect Mexicana (CMA), but it remains unclear if he will make good on that promise. A bankruptcy court dismissed an investment group that had pledged to recapitalize (CMA), and although several investors have expressed interest, the court has yet to approve a new restructuring plan. Since Mexicana (CMA)'s grounding, Interjet (AAE) has emerged as the country's largest domestic carrier and, along with Volaris (VLS) and Aeromexico (AMX), it has filled the gap left by Mexicana (CMA).
(AMX) now carries 38% of all domestic Mexican traffic (by passengers) and 14% of Mexican international traffic.
(AMX) has finalized an order that it had previously announced for 6 787-9s while also agreeing to take 4 additional 787 options. (AMX) now has a total of 15 787s on order and expects to take delivery of the 1st of 9 787-8s in summer 2013.
February 2013: Aeroméxico (AMX) announced 20.19% of its business has been acquired by a group of Mexican investors. The shares were previously owned by an affiliate of Banco Nacional de Mexico (Banamex).
The group of investors, led by Eduardo Tricio and Valentín Díez-Morodo, “is comprised of Aeroméxico (AMX)’s shareholders who had participated in the 2007 initial purchase of (AMX) and that have since remained invested in the company,” (AMX) said.
Tricio, currently Chairman of Grupo (LALA)’s (one of the world's largest milk producers), board of directors, was appointed Chairman of Aeroméxico, replacing José Luis Barraza González after a term of >5 years. Tricio is now the only board member to hold >10% of the company’s outstanding shares. Diez-Morodo was named Vice-Chairman, and Andrés Conesa will remain as (AMX) (CEO).
“Tricio, together with members of his immediate family, may be deemed to have significant influence (under Mexican law) in Aeromexico as a result of shareholders’ arrangements that, in certain circumstances, allow him to direct the vote of more than >20% of our outstanding shares. Some of our shareholders, that are also members of our board, have executed arrangements related to rights of 1st refusal, management and similar maters as provided under the Mexican Securities Market Act.”
Several transactions by Mexican businessmen related to Grupo Lala have taken place recently with the transactions expected to be worth approximately $172 million USD according to AeroMéxico (AMX). Banamex will continue to hold a 16.11% stake in (AMX).
March 2013: AeroMéxico (AMX) returned to the Mexican city of Toluca (TLC) on February 25 with 3 domestic routes operated by AeroMéxico Connect. (AMX) now operates services to Cancún (CUN), Guadalajara (GDL) and Monterrey (MTY), with daily, 2x-daily and 3x-daily frequencies respectively. Cancún is already served by Interjet (AAE) (2x-daily) and Volaris (VLS) (daily). The latter also offers daily flights to Guadalajara, while Interjet (AAE) markets 13x-weekly frequencies from Toluca to Monterrey.
(AMX) continued its expansion from Mexico City’s 2nd airport, Toluca (TLC) on March 1, when it launched 2x-weekly flights on the 300 km route to Acapulco (ACA). Services to this popular resort on Mexico’s Pacific coast are operated in competition with Interjet (AAE), which offers 11x-weekly departures on the route.
(AMX) added a 2nd stopping service connecting Culiacán (CUL) and Los Angeles (LAX) on March 24. In addition to the existing routing via Hermosillo, which (AMX) offers with daily frequencies, it is now also possible to make the journey with a stopover in Loreto (LTO). 2x-weekly frequencies are offered on the route and operated by AeroMéxico Connect using ERJ-145. Volaris (VLS) provides competition in the market from Culiacán to Los Angeles, which it serves directly with single weekly flights.
April 2013: Grupo Aeroméxico (AMX) has reported a 1st-quarter net loss of -MXN122 million/-$9.9 million, reversed from a net profit of +MXN135 million.
AeroMéxico Connect ((IATA) Code: 5D, based at Monterrey General Mariano Escobedo International (MTY)) is planning to introduce E175s for its domestic services on behalf of parent AeroMéxico (AMX). It plans to add several ex-(TRIP) Linhas Aéreas ((IATA) Code: T4, based at Campinas Viracopos (VCP)) (TIB) airplanes with operations scheduled to start from May 1 on routes from México City Benito Juárez International (MEX) to Aguascalientes Licenciado Jesús Terán Peredo International (AGU), Ixtapa/Zihuatanejo International (ZIH), Minatitlán Coatzacoalcos National (MTT), Oaxaca Xoxocotlán International (OAX), Poza Rica El Tajín National (PAZ), San Luis Potosí Ponciano Arriaga International (SLP), Tampico General Francisco Javier Mina International (TAM), Veracruz General Heriberto Jara International (VER) and Zacatecas General Leobardo C Ruiz International (ZCL). The airplanes will likely replace smaller ERJ-145s that (TIB) has started retiring. (TIB) currently operates 19 E190s, 3 E170s and 35 ERJ-145s.
May 2013: SEE ATTACHED "Seattle Times" ARTICLE ON MEXICO WARNING - - "AMX-VISIT MEXICO-CAUTION-2013-05."
Aeromexico (AMX) is adding frequencies to Chicago, Houston and San Francisco. It is also opening some new Los Angeles routes.
(AMX) has announced its initial 787 Dreamliner routes set to go live later this year when it takes delivery of its 1st 2 787-8s, on lease from the International Lease Finance Corporation (ILFC) (ILF). It has a total of 9 787-8s on order. (AMX) plans to start using its 787-8s in early October, initially operating on shorter routes from México City to Monterrey General Mariano Escobedo International (MTY), New York John F Kennedy International (JFK) and Tijuana General Abelardo L Rodríguez International (TIJ). Flights to Paris Charles de Gaulle (CDG) and via Tijuana to Tokyo Narita New Tokyo International (NRT) are scheduled to start from October 14. Buenos Aires Ezeiza Ministro Pistarini (EZE) is scheduled to see 1st 787-8 services from February 5, 2014.
GOL (GOT) has expanded its code share on Delta Air Line (DAL) flights between Brasília and Atlanta, Georgia, which is considered a key milestone in the partnership. The move should be completed by August.
The next steps will include all of (DAL)’s flights between Brazil and the USA, and “key connecting markets” operated by the carrier. These comprise all flights to Atlanta, New York (JFK) and Detroit, Michigan. On (GOT)’s side, connecting flights to Atlanta from Goiânia, Belo Horizonte, Curitiba, and Porto Alegre to Brasília will be included in the 2nd stage of implementation. Passengers will be able to mutually accumulate and redeem mileage at the respective Smiles and SkyMiles frequent flyer programs.
The expanded partnership is part of (DAL)’s strategy, which includes a long-term exclusive $100 million alliance with (GOT), a $65 million long-term exclusive alliance with Aeroméxico (AMX), and a code share agreement with Aerolíneas Argentinas (ARL).
(AMX) serves 19 countries, 85 destinations, and 185 routes.
In late December 2012, (AMX) also finalized an order for 6 787-9s, with reconfirmation rights for +4 additional 787 Dreamliners in a deal valued at US $1.46 billion.
SR Technics (SWS), part of the Mubadala Aerospace Maintenance Repair & Overhaul (MRO) network, and Aeromexico (AMX) have signed a 10-year integrated component services (ICS) contract for (AMX)’s 19 787s. Financing will be provided by Sanad Aero Solutions, also part of Mubadala.
(AMX) has added 3 Embraer E175 airplanes to its fleet, making it the 1st national airline in the country to operate this modern airplane. As part of the plan for the renovation of its fleet, the 86-seat, single-aisle airplane will gradually replace the ERJ-145s with 50 seats.
2 of the 3 airplanes will launch operations June 1 and on routes from Mexico City to Acapulco, Veracruz, Oaxaca, Guadalajara, Tampico, Zihuatanejo, Minatitlan, San Luis Potosi, and Aguascalientes.
(AMX) flies to >45 destinations in Mexico, 18 in the USA, 11 in Latin America, 3 in Europe, 2 in Asia, and 1 in Canada.
Grupo Aeroméxico reported a 1st-quarter net loss of -MXN122 million/-$9.9 million, reversed from a net profit of +MXN$135 million last year.
June 2013: 737-852 (36703, XA-AMB), delivery.
July 2013: Grupo Aeroméxico posted a 2nd-quarter net income of +MXP$322 million/+$25.7 million, more than doubling its year-ago net income of +MXP$153.
Aeromexico (AMX) began 2x-weekly, La Paz - Los Angeles Embraer E190 service. (AMX) also added frequencies on seasonal Mexico City service from Orlando, Miami, and Los Angeles.
737-852 (36704, XA-AMC), and E170-200LR (0137, XA-ACY) (GEF) leased, deliveries.
See video "AeroMexico (AMX) 787-8 Dreamliner 1st Flight" - -
August 2013: 1st 787-8 Dreamliner (35306, N961AM - - SEE PHOTO - - "AMX-2013-08 - 1ST 787-8"), (ILF) leased with 32J (premier class lie-flat seats), 211Y seating, delivery. 2 more are due in September. The inaugural service is planned for October 1st between Mexico City (MEX) and Monterrey, followed the same day by a (MEX) - Tijuana rotation. Flights to New York (JFK) operate October 2 - 13 then the first 787 moves to the Tokyo (Narita) route, flying westbound via Tijuana,. (MEX) - Paris (CDG) is scheduled to begin on October 21, Buenos Aires on February 5th, 2014, and Madrid from April 26th. Aeromexico (AMX) will acquire a total of 11 787-8s and 10 787-9s.
(AMX) begins Mexico City - Tokyo 787 service on October 14.
September 2013: Aeromexico (AMX) has launched its 1st 787 on 1 of its 4 daily flights between New York City to Mexico City. (AMX) took delivery of its 1st of the type in August.
The 787 is the 1st of 9 787-8s (AMX) will receive, including 5 on lease from International Lease Finance Corporation (ILFC). Aeromexico (AMX) will operate a total of 19 787 Dreamliners, including 10 787-9s ordered last year.
The 787 is configured with 32C premier class lie-flat seats and 211Y economy class seats. It is also equipped with personal entertainment systems with 16-inch elite high definition Panasonic screens in its (C) premier class and eco monitor touch-screens in (Y) economy.
October 2013: Grupo Aeromexico posted a 3rd-quarter net income of +MXP495 million/+$37.6 million, up +4.7% from a +MXP422 million profit in the year-ago period.
Aeromexico (AMX) and Delta Air Lines (DAL) have applied for 5 new USA - Mexico route authorities from the USA Department of Transportation (DOT), adding to their rapidly growing cross border network. The carriers are seeking authorisation to begin flights between Leon/Guanajuato and both Sacramento and San Francisco, between Monterrey and Los Angeles, and between Morelia and both Chicago and Fresno, according to a regulatory filing on September 27. (AMX) would operate the flights with the (DAL) code on an up to daily basis with 737 airplanes. (AMX) operates 28 737-700s and 19 737-800s.
No airlines fly the Leon/Guanajuato to Sacramento or San Francisco, Monterrey to Los Angeles or Morelia to Fresno routes. Volaris (VLS) flies between Morelia and Chicago Midway airport.
The (DOT) did approve Aeromexico (AMX) and (DAL)’s request for authority to fly between Chicago and Cancun on September 25.
Aeromexico (AMX) has launched 2x-daily flights between Culiacan (CUL) and Tijuana (TIJ), close to the border with California. The 1,265 km route is already served by Volaris (VLS) (with 4 daily flights) and VivaAerobus (VVS) (with 5 weekly flights). (AMX) will use 737-800s on the new route, which is its 7th from Culiacan, and its 9th from Tijuana. Last year, Tijuana International Airport handled 3.7 million passengers, making it the 5th busiest airport in Mexico. In the first 8 months of 2013, passenger numbers are up +11.6% to 2.8 million. Volaris (VLS) is the biggest carrier at the airport with 260 weekly departures, compared with 101 for Aeromexico (AMX), 42 for Interjet (AAE), and just 5 for VivaAerobus (VVS).
(AMX) launches daily, Mexico City - Quito 737-700 service on December 16.
Aeromexico (AMX) received its second 787-8, which commenced commercial operations on the Mexico City - New York route at the end of October.
November 2013: Aeroméxico (AMX) began 3x-weekly, Tapachula - Guatemala City, Embraer ERJ-145 service. (AMX) will launch new seasonal service from New York to Puerto Vallarta, and from New York to Los Cabos, on January 16 and 18, respectively. (AMX) will operate 3x-weekly on each route.
Separately, (AMX) will add 3 weekly flights to its daily service between New York and Cancun from December 20th. (AMX) will operate all flights with 737-800s. It is the only airline operating to Puerto Vallarta and Los Cabos from New York, but competes against American Airlines (AAL) and JetBlue Airways (JBL) on New York - Cancun.
December 2013: Aeromexico (AMX) introduced seasonal flights from Puerto Vallarta (PVR) to Chicago O’Hare (ORD) on December 21st. The 2,870 km sector will be served weekly (Saturdays) with a 737 until January 29th, when Wednesday flights will be added. The service ends on April 26th. This winter, there are some 130 weekly flights between Puerto Vallarta (located on Mexico’s west coast) and USA airports, all of which, with the exception of this new Aeromexico (AMX) service, are operated by USA carriers. Competition on the route is provided by American Airlines (AAL) (9x-weekly flights), United Airlines (UAL) (two) and Frontier Airlines (FRO) (one).
Grupo Aeromexico has priced 1.5 billion in peso-denominated senior trust bonds (CEBURES) in the Mexican stock exchange. This initial transaction was rated “AA+” (E) by (HR) Ratings and is made under a 5 billion pesos (CEBURES) program, backed by cash flows from credit card flows derived from ticket sales through offices and travel agencies in Mexico.
Aeromexico (AMX) started 3 new international routes, including linking Guanajuato (BJX) and Guadalajara (GDL) with San Francisco (SFO). The latter, a daily route, started on December 12, and will be flown in competition with United Airlines (UAL)’s 5x-weekly service, while the former 3x-weekly operation began a day later on December 13, but faces no direct competition. The last of the new route trio commenced on December 16th, and will see the capitals of Mexico and Ecuador linked by the SkyTeam (STM) Alliance carrier, operating a daily service between Mexico City (MEX) and Quito (UIO), currently against no competition. All 3 city-pairs will be flown by (AMX)’s 12C, 112Y-seat 737-700 fleet.
Aeromexico (AMX) has a new agreement to add Gogo's in-flight connectivity network to its fleet of Boeing 737 airplanes, Mexico's largest carrier said. Under the agreement, Gogo's Ku-band satellite service will be provided for the 737 fleet, and Inmarsat's SwiftBroadband satellite connectivity for (AMX)'s fleet of regional jets. The connectivity service and Gogo Vision are expected to be available to (AMX) passengers for the second half of 2014.
The (AMX) deal follows another recent major international partnership for Gogo, with Japan Airlines (JAL) signing the company's 1st foreign-based carrier contract to add the Ku-satellite network to its entire domestic fleet beginning in the summer of 2014.
"As the airline that connects Mexico and Mexico with the world, we look forward to being the 1st Mexican carrier and the 1st in Latin America to offer our passengers in-flight Wi-Fi via Gogo, the leader in this space," said Andrew Conesa, (CEO) of Aeromexico (AMX).
January 2014: Aeromexico (AMX) began daily, Mexico City - Quito 737-700 service.
Boeing (TBC) has rolled out the 1st 787 built at the increased production rate of 10 airplanes per month. The 787-8 and the 155th 787 built, will be delivered to International Lease Finance Corporation (ILFC) for operation by Aeromexico (AMX). This airplane will be the 4th 787 operated by Aeromexico (AMX) and will be used on (AMX)'s Mexico City - London Heathrow route.
February 2014: Grupo Aeromexico posted a +MXP385 million/+$28.9 million unaudited consolidated net profit for the 2013 4th quarter, down -37.1% from +MXP612 million the year before. Full-year consolidated net profit was +MXP1 billion, down from +MXP1.3 billion.
Total 2013 revenues were up +8.2% to MXP10.7 billion, while total revenue per (ASK) decreased -3.3% to MXP1.2 and total costs per (ASK) fell -5.5% to MXP1.1.
Operating profit for the year grew +70.4% to +MXP634 million.
In the 4th quarter, cargo revenues grew +4.5%, mainly due to the greater load capacity of 2 Boeing 787-8s incorporated into its fleet.
Passenger traffic went up +15.8% in (RPK)s, while (ASK)s increased +11.9% and load factor grew +2.7% points to 78.6 LF. Passenger numbers improved +13.6% to 4.2 million.
2 Boeing 787-8s, 1 Boeing 767 and 1 Embraer E190 were added to its fleet in the period, while 3 Embraer ERJ-145s were phased out.
Passenger numbers grew +4.6% to 15.4 million, a record for Aeromexico (AMX), despite moderate economic activity in 2013 - a growth of +1.3% forecast for the full year at its home base.
Domestic passenger revenue accounted for 51.6% of total fare revenues, while international passengers accounted for 48.4%.
Route Network Update for AeroMéxico (AMX):
AeroMéxico ((IATA) Code: AM, based at México City) (AMX) network changes:
New route: Cancún - Los Angeles International starting March 1, 2014.
New route: Los Angeles International - Cancún starting March 1, 2014.
Aeromexico (AMX) is upgrading its commercial fleet of 737-800s with Aviation Partners Boeing's (APB) Split Scimitar Winglets. The new winglets achieved (FAA) certification in early February. (APB) says the Split Scimitar Winglets are an improvement on its existing Blended Winglet structure, adding new strengthened spars, aerodynamic scimitar tips and a large ventral strake.
(APB) estimates the winglets will save Aeromexico (AMX) more than >55,000 gallons of jet fuel per airplane per year. "This important structural modification will represent a significant fuel burn improvement in our rapidly growing operations," said Corneel Koster, Chief Operating Officer (COO) for (AMX). "The installation of these highly innovative winglets will generate close to 170 thousand liters of annual fuel savings per airplane.
Currently, AeroMexico (AMX) operates 59 airplanes, and serves 20 countries, 82 destinations, 185 routes and 644 daily flights.
March 2014: Aeromexico (AMX) adds a 4th weekly, Mexico City - Tokyo 787 Dreamliner service in April. A 3rd weekly, Boeing 777 Mexico City - Shanghai service begins in July.
April 2014: (BOC) Aviation (SIL) will lease 3 new Embraer E190s to Grupo Aeromexico (AMX) for delivery between April and June.
May 2014: Grupo Aeroméxico posted a 1st-quarter net loss of -MXP90 million/-$6.9 million, narrowed from a -MXP122 million net loss in the 2013 1st quarter.
Revenues increased +6.6% year-over-year to MXP9.78 billion, despite a -3.6% decrease in (CASK)s, ex-fuel, to MXP0.733. Operating expenses grew +8.5% to MXP9.75 billion; the resulting operating profit came to +MXP31 million, down -83.5% year-over-year.
The company attributed its first-quarter performance to having “operated in an environment characterized by weak [Mexican] economic growth, negative seasonal effects [the Easter holiday began in April this year, as opposed to having occurred in March 2013], increased [competitive] air passenger traffic in Mexican industry and [Mexican peso - US dollar] exchange-rate depreciation.”
Passenger traffic rose +21.1% year-over-year to 6.8 billion (RPK)s on a +12.2% increase in capacity to 8.59 billion (ASK)s, producing a load factor of 79.3% LF, up +5.8 points year-over-year. Yield fell -13.1% to MXP1.302. (CASK) ex-fuel decreased -8.3% to 5.5 cents. Cargo revenues increased +7.8% to MXP538 million.
Grupo Aeromexico has a raft of initiatives under way to sustain and improve its fortunes in the Mexican aviation market, where traffic is growing despite uncertain economic conditions.
Mexico faces an uphill climb to meet its Gross Domestic Product (GDP) growth forecast of +3% in 2014 as Aeromexico (AMX) recently noted that Mexico’s general economic indicator only grew +0.9% in January 2014 versus +3.2% growth a year earlier.
Despite the economic challenges facing Mexico, Aeromexico (AMX) remains bullish on the untapped potential for air travel that lies within the country’s growing middle class. In order to ensure it maintains a competitive edge in capturing its fair share of latent demand for air travel, (AMX) is working to distance itself from its rivals, by leveraging its network strength and improving its cost and revenue management.
Delta Air Lines (DAL) is set to boost its shareholding in AeroMéxico ((IATA) Code: AM, based at México City) (AMX) parent firm, Grupo AeroMéxico, with the acquisition of an additional 4.9% stake. Acquired following the divestiture of a group of Mexican investors, (DAL) also is also reported to have its eye on Citigroup's 16% shareholding in (AMX). Should that acquisition come to pass, it would take (DAL) to the maximum permissible shareholding a foreign investor can hold in a Mexican airline.
AeroMéxico (AMX) and (DAL) have been collaborated extensively in recent months opening a new heavy Maintenance, Repair & Overhaul (MRO) facility at Querétaro (the largest of its type in Latin America). As part of a Memorandum of Understanding (MOU) and continuation of their commercial alliance signed in 2012, the carriers have also invested equal amounts in the project to move work at Guadalajara and expand (MRO) capabilities for their own airplanes and other carriers.
(DAL) has also advised the Mexicans in the development of their México City hub operations, which aims to become a core hub for travel between the Americas as well as Asia.
Grupo Aeroméxico retired 2 leased Boeing 737-700s during the quarter. As of March 31, the company had 115 airplanes in its combined Aeromexico (AMX) and Aeromexico Connect fleet, comprising 3 Boeing 787s, 4 Boeing 777s, 6 767s, 45 737s, 30 Embraer ERJ-145s, 7 E170s and 20 E190s.
July 2014: Grupo Aeroméxico incurred a net loss of -MXP89 million/-$6.9 million in the 2nd quarter, reversed from a net profit of +MXP322 million in the 2013 June quarter. Mexico’s largest airline operator noted the “Mexican economy continued to have a weak performance.”
Grupo Aeroméxico, parent of mainline Aeroméxico (AMX) and regional Aeroméxico Connect, also pointed out the Mexican peso depreciated -4% relative to the USA dollar during the second quarter and “Grupo Aeroméxico’s price of fuel denominated in Mexican pesos increased during the second quarter by +6.9% year-on-year due to the increase in the USA dollar-denominated average price of fuel and the exchange rate depreciation.”
Grupo Aeroméxico’s 2nd-quarter revenue increased +9% year-over-year to MXP10.36 billion, but expenses grew at nearly double the rate of revenue, rising +16% to MXP10.15 billion. 2nd-quarter operating profit decreased -73% compared with the 2013 June quarter to +MXP202 million and operating margin dropped -5.9 points from 7.9% in the prior-year period to just 2% in the 2014 second quarter.
Second-quarter traffic rose +21.6% year-over-year to 7.03 billion (RPK)s on a +17% increase in capacity to 8.92 billion (ASK)s, producing a load factor of 79.3% LF, up +3.4 points. Yield decreased -12.4% to MXP1.35.
Grupo Aeroméxico took delivery of 2 Boeing 787s, 1 737-800 and 4 Embraer E190s in the 2nd quarter, while retiring 1 737-700 and 2 ERJ-145s, ending the quarter with a fleet of 119 airplanes. (AMX)’s fleet at the end of 2nd quarter comprised 4 777s, 5 787s, 6 767s, 25 737-700s and 20 737-800s, while Aeroméxico Connect’s fleet included 28 ERJ-145s, 7 E170/E175 airplanes and 24 E190s.
August 2014: Aeromexico (AMX) added 2x-daily, Monterrey, Mexico - Houston and daily, Monterrey - Torreon service. Both begin November 3 with 50-seat Embraer ERJ-145s.
(AMX) has signed a definitive agreement with Gogo for its next-generation 2Ku in-flight connectivity technology on at least 58 Embraer and Boeing 737 airplanes.
2 737-852s (36707, XA-AML; 39945, XA-AMN), (SMBC) Aviation Capital leased.
September 2014: Aeromexico (AMX) begins 6x-weekly, Mexico City - Managua Embraer E170 service on December 10.
(AMX), Mexico's global airline, announced that as of this month of September, passengers can keep their mobile electronic devices, such as tablets, ebooks, video games, digital music players and smartphones turned on throughout their flights, provided all data transmission functions are turned off and their devices are kept in "flight mode."
Corneel Koster, Chief Operating Officer (COO) at Aeromexico, noted that the use of electronic devices on board during the flight means a technological breakthrough for (AMX). "We are the first airline in Mexico to apply this measure on our flights. With this important step, (AMX) joins the leading carriers across the globe in offering the ease of use of technology and on board entertainment systems in a safe environment. This is great news for our customers, who will not have to interrupt their personal entertainment or work flows at any time during the flight," he added.
The Mexican Civil Aviation Authority (DGAC) recently approved the rules needed to apply this measure, similar to the safety provisions approved by the Federal Aviation Administration (FAA) of the United States (FAA), and other authorities world wide.
Thus, (AMX) stays at the forefront with the technology and safety needed to continue offering its passengers the best experience of travel, comfort, and tranquility.
October 2014: News Item A-1: Grupo Aeroméxico reported a +MXP201 million/+$14.8 million net profit for the 3rd quarter, a recovery from a net loss in the 2nd quarter, but down -59.4% from net income of +MXP495 million in the 2013 September quarter.
Third-quarter revenue rose +6.9% year-over-year to MXP11.19 billion “primarily due to an increase in passenger revenue,” Grupo Aeroméxico said. Grupo Aeroméxico is the parent company of mainline Aeroméxico (AMX) and regional, Aeroméxico Connect.
3rd-quarter expenses rose +10.8% to MXP10.67 billion and operating profit declined -37.3% to MXP522 million. Operating margin fell -3.3 points from 8% in the 2013 3rd quarter to 4.7% for the 3 months ended September 30.
Grupo Aeroméxico noted that (CASK) ex-fuel lowered -0.1% year-over-year in the 3rd quarter, the 7th straight reporting period the company has reduced (CASK) ex-fuel.
Mexico’s largest airline operator retired 1 Boeing 767, 1 737-700 and 2 Embraer ERJ-145s from its fleet in the 3rd quarter, while adding 3 737-800s, 2 E170/E175 airplanes and 3 E190s. It ended the period with 123 airplanes, comprising 61 Boeing airplanes in Aeroméxico (AMX)’s fleet (including 5 787s) and 62 Embraer regional jets in Aeroméxico Connect’s feet. The group had 116 airplanes in its fleet at the end of the September 2013 quarter (including just 1 787).
Grupo Aeroméxico’s 3rd-quarter traffic rose +14.5% year-over-year to 7.65 billion (RPK)s on a 12.4% capacity increase to 9.39 billion (ASK)s. Load factor on scheduled flights was 81.9% LF, down -1.6 points. Yield fell -5.8%.
News Item A-2: Aeromexico (AMX) increases services from Mexico City adding a 2nd daily to Orlando and a 4th daily to Miami beginning November 3 with 737s. (AMX) begins daily, Monterrey - New York (JFK) Embraer E190 service on December 8. (AMX) begins 6x-weekly, Mexico City - Managua, Embraer E170 service on December 10.
November 2014: Aeromexico (AMX) has added 2 new routes to its base at Monterrey (MTY). On November 3rd (AMX) launched daily domestic flights to Torreon (TRC), using ERJ-145s. The 320 km route faces no competition and was last served in November 2008. On the same date, (AMX) introduced 13x-weekly flights to Houston Intercontinental (IAH) also using ERJ-145s. The 663 km route to Texas is already served by United Airlines (UAL) (56x-weekly departures), Interjet (AAE) (12x-), and VivaAerobus (VVS) (6x-). In total, Aeromexico (AMX) now serves 20 destinations non-stop from Monterrey, of which three are in the USA, the others being Las Vegas and San Antonio. Oscar Mejia, VP North America Sales for Aeromexico, said: “At Aeromexico, we reiterate our goal of increased connectivity in Houston, by starting this new service to Monterrey, one of our largest airport hubs. This new route, in addition to our 4 daily flights to Mexico City, makes Houston one of Aeromexico’s most important business and leisure destinations in the USA.”
December 2014: News Item A-1: Aeromexico (AMX)has joined VivaAerobus (VVS) and Volaris (VLS) in adding a new Mexico - USA route this week. The flag-carrier chose Monday December 8th to launch a new daily service between Monterrey (MTY) and New York (JFK). The 2,939 km route will be served by Aeromexico Connect’s E190s and will face no direct competition. This new route is in addition of (AMX)’s 5 daily flights from New York to Mexico City (one in code share with Delta Air Lines (DAL) and to its daily non-stop service to Cancun.
Aeromexico (AMX) on December 10th added Managua (MGA) in Nicaragua to its route network when it launched 6x-weekly flights on the 1,600 km route from Mexico City (MEX) using its E170s. No other carrier operates the route. With this development, Managua will be positioned as (AMX)’s 5th Central American destination and the 14th across all of Latin American. In the 1st 11 months of 2014, international passenger numbers at Augusto César Sandino International Airport serving Managua are up around +7% at just >1 million. Other airlines serving the Nicaraguan airport include American Airlines (AAL) to Miami, Delta Air Lines (DAL) to Atlanta, Spirit Airlines (SPR) to Fort Lauderdale, and United Airlines (UAL) to Houston Intercontinental.
News Item A-2: Embraer (EMB) delivered its 1,100th E-Jet to Aeromexico Connect.
February 2015: Grupo Aeromexico (AMX) reported +MXP783 million/+$53 million in consolidated net profit for 2014, down -27.5% from (AMX)’s 2013 net profit of +MXP1.08 billion. A strong 4th-quarter performance of +MXP761 million in net income kept the group in the black for 2014, following weak quarterly results earlier in the year (a net profit of +MXP201 million in the 3rd-quarter and net losses of -MXP89million and -MXP90 million in the 2nd and 1st quarters, respectively).
Grupo Aeromexico’s consolidated airlines’ (Aeromexico (AMX) and its regional, Aeromexico Connect) 4th-quarter net profit was a +97.6% year-over-year (YOY) improvement, nearly doubling (AMX)’s net income of +MXP385 million in the year-ago quarter.
(AMX)’s air cargo division showed +24.1% (YOY) growth in the 4th-quarter, accruing MXP685 in revenue for the quarter. (AMX) pointed to the recent introduction of 5 Boeing 787s into its fleet, which “[provided] increased cargo capacity, an improved commercial and customer service strategy, as well as improved performance in the domestic cargo market.” Mexico’s air cargo market reportedly grew +8.9% (YOY) in the number of tons transported during 2014.
Aeromexico (AMX)’s full-year revenues were MXP42.92 billion, up +7.7% (YOY); operating expenses grew +8.6% (YOY) to MXP35.05 billion. Accounting for airplane leasing expenses and currency depreciation, (AMX)’s full-year operating profit came to +MXP1.68 billion, a -30.1% (YOY) drop.
Fourth-quarter revenue was MXP11.6 billion, up +8.3% (YOY); operating expenses were MXP8.97 billion, up +3.5% (YOY). Operating profit after leasing expenses and depreciation came to +MXP925 million, a +45.9% increase (YOY).
International passengers accounted for 51% of Grupo Aeromexico’s total fare revenues in 2014, while domestic passenger revenue accounted for 49% of the total. “2014 is the first year in which international passenger revenues have exceeded domestic passenger revenues,” (AMX) said, “contributing to an overall natural hedge between foreign currency-denominated revenues and costs.”
Passenger traffic for the year was up +15% (YOY), to 28.77 billion (RPK)s; capacity grew +11.5% (YOY) to 36.22 billion (ASK)s, resulting in a load factor for the full-year of 79.8% LF, up +2.2 points (YOY). (AMX) carried 17.2 million passengers in 2014, up +11% (YOY) (a “historical record for the company)” (AMX) said.
Yield fell -6.6% (YOY) to MXP1.370. Total (RASK) was down -3.3% (YOY) to MXP1.185. Total (CASK), excluding fuel in Mexican pesos increased +0.7% (YOY) to MXP0.760; total (CASK) excluding fuel in USA dollars fell -3.4% (YOY) to 5.7 cents.
2 Boeing 737-800s and 2 Embraer E190s were added to (AMX)’s consolidated fleet during the 4th-quarter; 3 leased airplanes were retired during the quarter (a 767, and 2 Embraer ERJ-145s). In total, Aeromexico (AMX) added 19 airplanes to its consolidated fleet of 124 airplanes in 2014, and retired 12, for a net gain of 7 airplanes for the year. As of December 31, 2014, (AMX)’s fleet comprised 4 777s, 5 787s, 4 767s, 24 737-700s and 25 737-800s (a total of 62 airplanes). Aeromexico Connect’s fleet comprised 24 ERJ-145s, 9 E170/E175s and 29 E190s, for a total of 62 airplanes.
March 2015: News Item A-1: Aeromexico (AMX) on March 2nd began service between Mexico City (MEX) and Medellin (MDE), (AMX)’s second destination in Colombia. It already serves Bogota 2x-daily. The new 2,932 km route will be flown 4x-weekly using (AMX)’s 124-seat 737s and faces no direct competition. Frequency will be increased to daily from June.
Medellin becomes (AMX)’s 16th destination in Latin America. Medellin, which in 2013 received over >187,000 foreign tourists, was awarded the title as the "Most Innovative City" in the world in 2013 by the "Wall Street Journal." It has held major events such as the United Nations (UN) World Urban Forum, and will host the General Assembly of the World Tourism Organization in 2015.
News Item A-2: Avolon Leasing (AZV) delivered a 2nd Boeing 737-800 to Aeromexico (AMX). The delivery is the 2nd of 4 737-800s scheduled for delivery to (AMX) by Avolon (AZV).
April 2015: News Item A-1: Grupo Aeroméxico recorded a consolidated net profit of +MXP185 million/+$12.1 million for the 2015 1st quarter, swinging into the black from -MXP91 million in net losses (AMX) reported in the 2014 March quarter. It is the 3rd consecutive quarter in which the Mexico City-based airline has recorded profitable net income.
Revenues were up +9.2% year-over-year (YOY) to MXP10.68 billion despite an +11% (YOY) increase in (CASK) ex-fuel to MXP0.813. Operating costs dropped -0.8% (YOY) to MXP8.26 billion and (AMX)’s resultant operating profit for the quarter came in at +MXP526 million, a nearly sixfold increase (YOY) from the +MXP88 million in operating income the company recorded for (1Q) 2014.
“This quarter’s financial results reflect the positive impact of reduced fuel prices and the negative impact of Mexican peso depreciation against the USA dollar,” Grupo Aeroméxico said. “(CASK) in pesos decreased -5.2%, while (CASK) in dollars decreased -16%, maintaining cost discipline.”
Passenger traffic rose +8% (YOY) to 7.34 billion (RPK)s on a +10.7% increase in capacity to 9.51 billion (ASK)s, producing a load factor of 77.3% LF, down -2 points (YOY).
Yield grew +2.8% (YOY) to MXP1.339. (CASK) ex-fuel in USA dollars was down -1.7% (YOY) to 5.4 cents. Cargo revenue during the 1st 3 months of 2015 increased +20.8% (YOY) to MXP649 million, attributable, the company said, to Aeroméxico (AMX)’s incorporation of +4 additional Boeing 787s into its fleet since the end of the 2014 1st-quarter.
Grupo Aeroméxico retired 3 leased airplanes during the quarter: a 767, a 737-700 and an Embraer ERJ-145. At the same time, (AMX) added 2 787-8 Dreamliners, a 737-800, an E170/E175 and an E190 to its operating fleet, all under lease agreements.
As of March 31, Grupo Aeroméxico had 126 airplanes in its combined fleet. (AMX) has 7 787s, 4 777s, 3 767s, 23 737-700s, and 26 737-800s in its fleet. Aeroméxico Connect has 23 ERJ-145s, 10 E170/E175s and 30 E190s.
News Item A-2: SkyTeam (SKT) Alliance partners, Delta Air Lines (DAL) and Aeromexico (AMX) aim to launch a transborder joint venture (JV) for flights between the USA and Mexico similar to the transatlantic (JV)s (DAL) operates with Virgin Atlantic Airways (VAA) and Air France (AFA) - (KLM)/Alitalia (ALI).
(DAL) and (AMX) have applied to the USA Department of Transportation (DOT) and Mexican Federal Economic Competition Commission for antitrust approval. The airlines said an antitrust-immunized (JV) would “allow (DAL) and (AMX) to operate more effectively on routes between the USA and Mexico. Also, (DAL) and (AMX) will seek to expand opportunities to collocate and invest in airport facilities by improving gates and lounges. Additionally, the airlines will increase joint sales and marketing initiatives.”
(DAL) owns a 4.17% stake in (AMX).
News Item A-3: Aeromexico (AMX) has added 2 new routes from its base at Mexico City (MEX), both to the USA state of California. On April 5th, (AMX) introduced 4x-weekly flights on the 2,446 km sector to Ontario (ONT), using a mixed fleet of its 124-seat 737-700s and 160-seat 737-800s. In addition, on April 6th, Aeromexico (AMX) started 3x-weekly departures to Sacramento (SMF), using its 124-seat 737-700s. (AMX) faces no competition on either of the 2 new services.
May 2015: News Item A-1: Aeromexico (AMX) on May 14th began daily service on the 2,409 km route between Mexico City (MEX) and Panama (PTY). The route is already served by Copa Airlines (COP) with 32x-weekly flights. (AMX) will operate the route with its 124-seat 737-700s.
News Item A-2: Grupo Aeromexico announced Eduardo Tricio Haro has decided to step down as Chairman of the board, while continuing as a non-executive Director. The board named Javier Arrigunaga Gómez del Campo to succeed him.
July 2015: News Item A-1: Grupo Aeroméxico posted a 2nd-quarter consolidated net profit of +MXP101 million/+$6.4 million, reversed from a -MXP89 million net loss in the year-ago quarter. The positive 2nd-quarter result marks 4 consecutive quarters of profitable net income for (AMX).
Revenues increased +8.9% year-over-year (YOY) to MXP11.28 billion, as operating costs rose +3.2% (YOY) to MXP8.89 billion. (AMX)’s operating profit for the quarter came in at +MXP401 million, a +76.9% (YOY) jump.
Grupo Aeroméxico’s 2nd-quarter revenue results were “primarily due to an increase in passenger revenues, higher cargo and other ancillary revenues [but] partially offset by a decline in charter revenues [down -64.7% (YOY), reflecting the drop in charter traffic since 2014’s World Cup],” the company said.
“[The] results reflect the positive impact of reduced fuel prices and the negative impact of Mexican peso depreciation against the USA dollar,” (AMX) said. (AMX) reported its (CASK) in pesos decreased 5.9% (YOY) while (CASK) in dollars decreased -20.2% (YOY).
Passenger traffic grew +15.6% (YOY) to 8.13 billion (RPK)s on a +14.6% increase in capacity to 10.22 billion (ASK)s, resulting in a 2nd-quarter load factor of 79.6% LF, down -0.3 point (YOY). (AMX) reported that its international capacity increased +17.5% (YOY) as 2 Boeing 787-8 Dreamliners were incorporated into the fleet during the quarter.
Yield slid -7.1% (YOY) to MXP1.251. (CASK) ex-fuel in US dollars was down -11.6% (YOY) to 5.1 cents. 2nd-quarter cargo revenue was up +21.8% (YOY) to MXP744 million, which the company attributed to the introduction of the 2 new 787-8 Dreamliners into (AMX)’s fleet.
(AMX) retired 5 leased airplanes during the quarter: a Boeing 767, a 737-700 and 3 Embraer ERJ-145s. 4 new leased airplanes (3 737-800s and an E170 + E175) were added to (AMX)’s fleet during the quarter.
As of June 30, Grupo Aeroméxico had 125 airplanes in its combined fleet. (AMX) has 7 787s, 4 777s, 2 767s, 22 737-700s, and 29 737-800s in its fleet. Aeroméxico Connect has 20 ERJ 145s, 11 E170/E175s E-Jets and 30 E190 E-Jets.
News Item A-2: Avolon Leasing (AZV) delivered a 3rd Boeing 737-800 to Aeromexico (AMX). The delivery is the 3rd of 4 737-800 airplanes scheduled for delivery to (AMX).
September 2015: Aeromexico (AMX) is looking to upgauge its fleet with newer airplanes in the coming years, (AMX)’s Senior VP Global Sales Jorge Goytortua said.
October 2015: News Item A-1: Grupo Aeroméxico reported +MXP737 million/+$43.1 million in consolidated net profit for the 2015 3rd-quarter, more than tripling its (3Q) 2014 net result. Last year, (AMX) posted 3rd-quarter net income of +MXP201 million.
Year-to-date, through September 30, Grupo Aeroméxico has produced net profits totaling +MXP1.02 billion, a +50-fold increase over the +MXP22 million (AMX) reported for the 1st 9 months of 2014.
Grupo Aeroméxico’s revenues increased +11% year-over-year (YOY) to MXP12.42 billion; operating expenses were trimmed -0.8% (YOY) to MXP8 billion. (AMX) reported its operating profit for the quarter as +MXP1.13 billion, nearly doubling its +MXP573 million operating profit from the 2014 September quarter.
The results reflect the “positive impact of reduced fuel prices and the negative impact of Mexican peso depreciation against the USA dollar,” Grupo Aeroméxico said in its (3Q) financial statement. (AMX)’s 3rd-quarter fuel price denominated in pesos decreased -27.9% (YOY), the company said.
Third-quarter revenues were “primarily due to an increase in passenger revenues, higher cargo and other ancillary revenues, partially offset by a decline in charter revenues,” Grupo Aeroméxico said. Passenger revenues rose +12.1% (YOY) to MXP11.2 billion; cargo revenue grew +11.9% (YOY) to MXP712 million, due to the airline having incorporated two new Boeing 787s into the fleet earlier this year. (AMX)’s charter revenues fell -56.9% (YOY) to MXP84 million (a statistical fall-out from the higher charter activity during the 2014 World Cup).
Passenger traffic was up +12% YOY to 8.28 billion (RPK)s on a +9.6% increase in capacity to 10.29 billion (ASK)s, resulting in a 3rd-quarter load factor of 82.7% LF, up +0.8 point (YOY). Yield was flat (up +0.1% (YOY)) at MXP1.361. (CASK) ex-fuel in USA dollars was down -11.1% (YOY) to 5.1 cents.
Grupo Aeroméxico (which is comprised of the mainline flag carrier Aeroméxico (AMX), plus regional airline Aeroméxico Connect) retired 7 leased airplanes during the quarter: 2 Boeing 767s, 3 737-700s and 2 Embraer ERJ-145s. 4 new leased airplanes (3 737-800s and an E170) were added to Grupo Aeroméxico’s fleet during the quarter. The airline group’s total fleet as of September 30 stands at 122 airplanes. (AMX)’s all-Boeing fleet is comprised of 31 737-800s, 19 737-700s, 8 787s and 4 777s. Aeroméxico Connect’s all-Embraer fleet comprises 30 E190s, 18 ERJ-145s and 12 E170/E175s.
News Item A-2: Aeromexico (AMX) on October 1 introduced 3 new domestic routes to its network. 2 of them are from Mexico City (MEX). At just 175 km, the 2x-daily service to Queretaro (QRO) becomes (AMX)’s shortest route. There is no competition in that market, unlike on the other two routes which are already served.
Routes as follows:
Mexico City (MEX) to Cozumel (CZM), ERJ-145 7x-weekly, vs Interjet (AAE) 5x; to Queretaro (QRO), ERJ-145 14x-;
Monterrey (MTY) to Tijuana (TIJ), E170, 7x-, vs Volaris (VLS) 10x-.
(AMX) now serves 78 domestic routes, of which 43 are from Mexico City.
News Item A-3: AeroMexico (AMX) has concluded its 767 operations.
November 2015: Aeromexico (AMX) has become the launch customer for a global airliner flight tracking tool produced by Rockwell Collins.
The (ARINC) MultiLink service was unveiled in March and has recently completed a number of trials. The service, announced earlier this year, offers a comprehensive and cost-effective global flight tracking solution.
Rockwell Collins developed the system with (ARINC), the communications and integration specialist it acquired in 2013. It merges 6 different data sources to provide a flight tracking solution for airlines.
Continuous global tracking of airliners became an industry focus after the disappearance in March 2014 of Malaysia Airlines (MAS) MH370, a Boeing 777-200. The airplane, with 239 people onboard, veered significantly off its scheduled flight path from Kuala Lumpur to Beijing. Although the 777 is believed to be at the bottom of the southern Indian Ocean, extensive and ongoing search efforts have so far failed to find it, although a flaperon was washed up on Reunion Island and confirmed by investigators to be from MH370.
An (IATA)-led Aircraft Tracking Task Force was set up to look at ways in which airliners could be tracked continuously in-flight. The task force issued a set of recommendations at the end of 2014, many of which rely on leveraging or adapting existing technologies and capabilities. Following that, (ICAO) issued a proposal for a standard requiring airliners to report their position every 15 minutes from November 2016, but there is concern among some airlines that the deadline may be too soon to achieve, and that the tracking requirements could lead to unintended consequences.
(ARINC) MultiLink brings together multiple data sources to reliably report the location of an aircraft anywhere in the world. These sources include (ADS-C); high-frequency data link (HFDL) performance data; (ADS-B); USA Aircraft Situation Display to Industry (ASDI) radar data; EUROCONTROL position information; and Aircraft Communications Addressing & Reporting System (ACARS) position reports. The system has been developed with the ability to incorporate future 3rd-party data sources, which may include position data.
Rockwell Collins uses a proprietary algorithm to merge the data sources to provide more accurate and higher fidelity position reporting. In addition, the use of multiple sources means an aircraft’s position can be reported more frequently. The service can also notify airlines when an aircraft unexpectedly has stopped reporting positional data or when the aircraft has deviated from its expected path, the company said.
Announcing the sign-up, Aeromexico (AMX) Corporate Technology Director, Benjamín Hernández said, “We fly a number of routes that are outside USA Aircraft Situational Display to Industry (ASDI) radar. (ARINC) MultiLink brings together multiple data sources, allowing us to fine-tune the information we receive to reliably report the location of our fleet of aircraft globally.”
“Aeromexico (AMX) is currently using Rockwell Collins’ (ARINC) Web Aircraft Situational Display (WebASD), enabling it to quickly, easily and very cost-effectively deploy our flight tracking solution,” Rockwell Collins VP Commercial Aviation Services, Yun Chong said.
Rockwell Collins confirmed that the Aeromexico (AMKX) service has been activated.
787-8 (37167, N783AM), (CIT) (TCI) leased.
December 2015: "Liberalized USA - Mexico Air Services Agreement Signed" by (ATW) Aaron Karp, December 18, 2015.
The USA government said it has signed a liberalized air services agreement with Mexico that will go into effect “following internal ratification procedures in Mexico.”
USA Transportation Secretary Anthony Foxx and USA Secretary of State, John Kerry said in a joint statement December 18, that the “landmark agreement with one of our largest aviation partners will significantly increase future trade and travel between the USA and Mexico,” adding, “The new agreement will benefit USA and Mexican airlines, travelers, businesses, airports and localities by allowing increased market access for passenger and cargo airlines to fly between any city in Mexico and any city in the USA. Cargo carriers will now have expanded opportunities to provide service to new destinations that were not available under the current, more restrictive agreement.”
It is expected that the agreement will end restrictions on the number of carriers allowed to operate on routes between the 2 countries.
A significant byproduct of the agreement is that it paves the way for SkyTeam (STM) Alliance partners, Delta Air Lines (DAL) and (AMX) to launch a joint venture (JV) for USA - Mexico transborder flying. The airlines have already submitted applications to the USA and Mexican governments for antitrust immunity (ATI) for the (JV), but approval is on hold until after the new air services agreement takes effect.
(DAL) in November expressed its intention to increase its holding in (AMX) to as much as 49%.
January 2016: News Item A-1: " WestJet (WJI), Aeromexico (AMX) to Code Share, Sell Tickets for Each Other" by (ATW) Aaron Karp, January 13, 2016.
WestJet (WJI) and Aeromexico (AMX) have signed a code share pact that builds on an interline agreement reached in December 2011. Under the new deal, (AMX) passengers will be able to connect via (WJI) through Montreal, Toronto, and Vancouver to a range of Canadian cities, including Calgary, Edmonton, Winnipeg, Ottawa, Halifax, Deer Lake, and St John’s. (WJI) will place its code on (AMX)’s lights between Mexico City and Montreal, Mexico City, and Toronto, plus Mexico City and Vancouver.
The airlines have also agreed to sell tickets for travel on each other’s entire networks, even including non-code share flights. “As part of their cooperation, bags checked with both (AMX) and (WJI) will continue to reach their final destination without a separate check-in at the point of transfer between the carriers,” the airlines said in a joint statement.
News Item A-2: Boeing’s Maintenance Performance Toolbox Records will be implemented by Aeromexic (AMX) to support maintenance operations for its Next-Generation 737s, as well as 767s, 777s, 787s and non-Boeing (TBC) fleets. It’s the 6th airline to sign up for the new module since launch in October 2015.
March 2016: Aeromexico (AMX) has introduced a new domestic service on March 7 between Guadalajara (GDL) and Los Mochis (LMM). The new 822 km route will be served 3x-weekly by (AMX)’s ERJ-145s. The route is already served by (TAR) Aerolineas (6x-weekly) and Volaris (VLS) (2x-weekly). (AMX) now serves 17 destinations from Guadalajara, while Los Mochis is already served with 13x-weekly flights from Aeromexico (AMX)’s main hub in Mexico City.
May 2016: Mexico approves Delta (DAL) - Aeromexico (AMX) joint venture (JV) pending slot transfer.
A key approval has paved the way for (AMX) and (DAL) to go forward with their proposed joint venture (JV), but the process is not yet complete.
June 2016: "China, Mexico Sign Aviation Collaboration Agreement" by
"China Aviation Daily", June 27, 2016.
China and Mexico have agreed to enhance their collaboration in the area of civil aviation. On June 22 - 23, Wang Zhiqing Deputy Chief of Civil Aviation Administration of China (CAAC), led a delegation to visit Mexico and met with the head of Directorate General of Civil Aeronautics (DGAC).
During the meeting, the two parties exchanged in-depth views on strengthening cooperation between Mexico and China in the civil aviation industry, and signed a meeting protocol, which will involve having a more flexible legal framework to encourage business collaborations in the air transport sector, as well as increasing services between the two countries.
In 2015, passenger traffic between the 2 countries saw a +13.8% increase, said the (CAAC).
Currently, Aeromexico (AMX) operates a 3x-weekly service between Shanghai and Tijuana. In April 2016, China's Capital Airlines (DER) submitted an application to the aviation watchdog for a 3x-weekly Beijing - Mexico City service. Scheduled in January 2017, the Beijing - Mexico service will be operated by Airbus A340 aircraft.
July 2016: Grupo Aeromexico reported +MXP28 million/+$1.5 million in net income for the 2016 2nd quarter, down -72.5% from its +MXP102 million net profit in the year-ago period.
(AMX), cited the positive aspect of reduced fuel prices and the negative impact of the Mexican peso’s depreciation against the USA dollar as factors behind the 2nd-quarter results.
During the 2nd quarter, the peso depreciated by an average of -18.3% year-over-year (YOY) relative to the USA dollar. By the end of the 2nd-quarter, the peso’s (YOY) depreciation against the dollar was 16.3%, from MXP15.70 in 2015 to MXP18.26 in 2016.
(AMX)’s fuel expenses during the 2nd quarter came to MXP2.6 billion, down -11.9% (YOY). Peso-dominated fuel prices fell -13.1% (YOY) during the June quarter.
Grupo Aeromexico’s 2nd-quarter revenue increased +9.7% (YOY) to MXP12.37 billion, while total expenses rose +10% (YOY) to MXP12 billion, producing an operating profit of +MXP385 million, up +0.7% from a +MXP383 million operating profit in the prior-year June quarter. Grupo Aeromexico’s 2nd-quarter passenger revenue rose +8.4% (YOY) to MXP10.7 billion; (AMX)’s cargo revenue grew +11.4% (YOY), to MXP820 million.
Second-quarter system traffic rose +3.6% (YOY) to 8.4 billion (RPK)s on a +3.8% (YOY) increase in capacity to 10.6 billion (ASK)s, producing a load factor of 76.4% LF, down -0.2 point (YOY).
Grupo Aeromexico’s 2nd-quarter total (RASK) rose +5.6% (YOY) to 1.165 pesos and its total (CASK) increased +6.6% (YOY) to 1.141 pesos. Total (CASK) ex-fuel was 0.893 pesos, up +14.8% (YOY).
An Embraer E170, an E190 and a Boeing 737-800 were added to Grupo Aeromexico’s fleet in the 2016 June quarter, all leased. An ERJ-145 was returned during the period as well. As of June 30, the group’s fleet totaled 128 aircraft, up 3 aircraft from a year ago. Mainline carrier Aeromexico (AMX)’s airplane fleet comprised 32 737-800s, 19 737-700s, 9 787 Dreamliners and 4 777s. Regional carrier Aeromexico Connect’s fleet comprised 32 E190s, 16 E170/E175s and 16 ERJ-145s.
August 2016: Aeromexico (AMX) has launched its new digital ecosystem that consists of a revamped website, mobile app, and updated airport kiosks offering customers a multi-platform experience meant to simplify the way to travel. (AMX) said it aims to develop a personalized and connected end-to-end passenger experience at each point of contact, be it directly at the airport or through interactions on the new mobile app or website.
October 2016: News Item A-1: Mexican flag carrier Aeromexico (AMX) unveiled its 1st Boeing 787-9 Dreamliner, called “Quetzalcoatl,” at (AMX)’s hangar in the Mexico City International Airport.
According to (AMX), the design is by Veracruz José Manuel Escudero and was inspired by the traditions and culture of Mexico as textiles and Huichol art, incorporating glyphs of flora and fauna along with the legend of “the serpent feathered” that sailed the skies in ancient times.
The 787-9 is the 1st of 10 of the type from a July 2012 order, representing the largest investment in the history of Mexican aviation. (AMX) took delivery of its 1st Boeing 787-8 3 years ago, and currently has 9 787-8s in its fleet, which it uses to serve different international destinations.
The 274-seat 787-9 is in a 2-cabin configuration. “Clase Premier,” Aeromexico’s business (C) class cabin, features 36 true 180-degree flat-bed seats in a 1-2-1 configuration for complete passenger comfort with full autonomy between aisles. The individual 18-inch touchscreens are 2 inches larger than those featured on the Boeing 787-8, and feature 2 live television channels, movies, TV series, and music albums, for >200 total hours of entertainment. Amenities in “Clase Premier” also include an innovative bar with the best food and beverage brands as part of its continuous refreshment service during the flight.
The economy (Y) cabin has 238 ergonomic seats, with individual 11-inch touchscreens, +2 inches larger than those featured on (AMX)'s other models, offering a wide variety of movies, TV series, music, a seat-to-seat chat system, and real time flight information. Like other airplanes in the Aeromexico (AMX) fleet, this model also features Wi-Fi service giving customers the option to surf the web in-flight.
News Item A-2: "Discover the World" has begun handling the sales and marketing for Aeromexico (AMX) in India.
News Item A-3: Aeromexico (AMX) signed an agreement October 25 for the installation of Panasonic Aviation’s eX1 in-flight entertainment (IFE) system on (AMX)’s upcoming fleet of 60 Boeing 737 MAX 8 and MAX 9 airplanes. Originally ordered in November 2012, the airplanes are scheduled for delivery beginning in 2018.
November 2016: News Item A-1: The USA Department of Transportation (DOT) is proposing to approve antitrust immunity (ATI) for the joint venture (JV) between Delta Air Lines (DAL) and Aeromexico (AMX) (but with conditions including the divestiture of slots at Mexico City and New York (JFK). The (DOT) said the airlines would have to divest enough roundtrip slot pairs to support 24 daily services between the USA and Mexico at Mexico City International Airport (MEX), and to open 6 transborder services in New York.
News Item A-2: News Item A-2: "(LATAM), and Copa (COP) Seek to Get in Front of Latin America’s Low Cost Carrier (LCC) Trend" by Aaron Karp firstname.lastname@example.org, November 22, 2016.
The (LATAM) Airlines Group in revamping its fare structure to offer a basic economy (Y) option on domestic flights and Copa Holdings launching a low-cost carrier (LCC) (Wingo), signal a move toward (LCC) services in Latin America, even among the region’s largest airlines.
(LCC)s have transformed the domestic Mexican market in recent years, and (LCC)s have a strong foothold in the Brazilian market, but the model has not yet caught on in the rest of Latin America. However, that now appears to be changing, particularly in domestic markets and on short-haul flights. (LATAM) (LAN)/(TPR) and Copa (GOP)/(REU) - (Wingo) are trying to get in front of the trend.
“Passengers are looking for a low, low price, as they are in Europe, and that is going to be the fastest growing segment in our region,” (LATAM) (CEO) Enrique Cueto said during the recent Latin American and Caribbean Air Transport Association (ALTA) Airline Leaders Forum in Mexico City. “We cannot let that segment be taken by someone else.”
(LATAM) is not launching a separate (LCC), but in the 1st half of next year it will start rolling out an unbundled fare structure in the 6 domestic markets its affiliates serve (Brazil, Chile, Peru, Argentina, Colombia, and Ecuador). Passengers will be able to choose a basic fare up to -20% lower than current prices, with the option to pay fees for add-ons such as checking baggage or selecting a seat.
Cueto said he expects to see multiple (LCC)s emerging to serve passengers on short-haul routes in Latin America, and (LATAM) decided it was necessary to modify its fare structure to remain competitive on flights of 2 hours or less. He acknowledged that (LATAM)’s costs on most of the short-haul routes will still be +10% to +15% higher than a pure (LCC)’s costs. “That is acceptable because we want to keep business (C) passengers,” he explained.
Though at a cost disadvantage, (LATAM) will have a “revenue advantage” on the short-haul routes and will offer a product that will be cost competitive enough to keep business (C) passengers from switching to (LCC)s and entice leisure passengers to choose (LATAM), Cueto argued. “If business (C) people go to another carrier, you’re doomed,” he said. “The challenge is we want to keep the business (C) passengers, but we will not give up that [LCC] segment.”
Copa (CEO) Pedro Heilbron conceded the decision to launch Wingo, a (LCC) subsidiary of Copa Airlines Colombia (REU) that will start flying December 1, was an uncharacteristic move for him. “Doing this is like if I were to arrive at this event [the annual (ALTA) gathering of Latin American airline executives] with red pants, a yellow checkered shirt and a hat,” the impeccably dressed Heilbron joked.
Wingo will operate 4 Boeing 737-700s configured with 142Y seats in a single-class cabin on point-to-point services to 16 destinations in Latin America and the Caribbean. Wingo is a “tool” to enable Copa (COP)/(REU) to retain passengers on short-haul routes where there is a growing (LCC) presence, Heilbron said. “Wingo doesn’t need to be profitable to be positive for Copa Holdings,” he said. “If they break even, it will be positive for us. Of course, we expect them to be profitable.”
Enrique Beltranena, the (CEO) of Volaris (VLS), the ultra-(LCC) credited with leading the low-fares revolution in Mexico that has moved millions of bus passengers to airlines, said there has been “a transformation of travel needs” in Latin America. Volaris (VLS) will take its model to the Central American market with the launch of Volaris Costa Rica next month. “The proof is here” in Mexico that offering low fares will create new air travelers in Latin America, Beltranena said. “I believe we have proven [the model] and we can do something similar in the Central American region.”
However, he cautioned that the low cost carrier (LCC) model has its limits, predicting that traditional service will continue to be the norm on long-haul routes within Latin America and to/from Latin America. “I don’t fully understand the virtues of a long-haul (LCC)" Beltranena said. “I do not understand the model for long-range flights.”
Aeromexico (AMX) (CEO) Andrés Conesa said that once passengers get accustomed to air travel, they may eventually migrate to long-haul services on more traditional carriers. “These passengers that used to travel by bus are flying with (LCC)s, but in the future they may be flying with us,” he said.
December 2016: Delta Air Lines (DAL) and Aeromexico (AMX) have accepted antitrust conditions imposed by USA regulators on (DAL)’s transborder joint venture (JV), and will move forward to establish the (JV.)
(DAL) and (AMX) had threatened to “reconsider” the (JV) unless the USA Department of Transportation (DOT) dropped the conditions it was requiring for granting the (JV) antitrust immunity, including the divestiture of 24 slot pairs at Mexico City International Airport and 6 slot pairs at New York (JFK) International Airport. But ultimately the airlines decided there was too much to gain from the (JV) to drop it over regulatory conditions.
“Together, (DAL) and (AMX) are stronger in the USA - Mexico market than either airline can be on its own,” (DAL) (CEO) Ed Bastian said, adding that the (JV) will offer passengers “an unmatched array of options” for transborder travel.
Aeromexico (AMX) (CEO) Andrés Conesa said the (JV) marks “the beginning of a new era in the aviation of North America.” The (JV) is the 1st of its kind for Mexico - (USA) flying. Bastian said it “means growth of services and jobs for both (DAL) and (AMX).” The (JV) will closely align the airlines, both SkyTeam (STM) alliance members. Delta (DAL) already owns a minority stake in Aeromexico (AMX) that it is in the process of increasing to as much as 49%.
The airlines plan to coordinate transborder flight schedules, co-locate facilities at airports and increase joint sales and marketing activities. Speaking at (DAL)’s investors day, Bastian emphasized that (DAL) is “committed to (AMX)” and said Mexico City, North America’s most populous city and (AMX)’s base hub, is an “underserved market.”
He also praised (AMX) as a forward-thinking airline that appeals to younger passengers, and said (DAL) plans to learn from its (JV) partner. “I want Delta (DAL) to be seen as the airline of choice of the next generation, for millennials,” Bastian explained. “If you look at Aeromexico (AMX), they’re already there.”
Conesa has said the (JV) “makes sense for the consumer” and will create “an additional wave of traffic” for (AMX).
* "USA (DOT) Wins "Game of Chicken" vs Delta - Aeromexico" by
(ATW) Aaron Karp in AirKarp Blog, December 21, 2016.
The USA Department of Transportation (DOT) engaged in a "game of chicken" with Delta Air Lines (DAL) and Aeromexico (AMX), and won. The (DOT) placed a series of conditions on its approval of the Delta - Aeromexico joint venture (JV) that the carriers emphatically said were too high a price to pay to gain antitrust immunity for USA - Mexico transborder flying.
Just as a reminder, (DAL) and (AMX) said in a joint regulatory filing in November that the (DOT)’s conditions were “unprecedented, arbitrary, and untethered to any potential alleged harms related to the [JV].” The airlines added, “The proposed conditions would jeopardize the sizeable consumer and economic benefits that [DOT] recognized would flow from the proposed [JV]. Moreover, they would severely diminish the economic viability of the [JV], and would compel [(DAL) and (AMX)] to reconsider undertaking it.”
That is just a sampling. In high-pitched rhetoric, the airlines went on for pages, saying the (DOT)’s conditions were “unprecedented, unwarranted, and should not be imposed.”
The (DOT) didn’t budge an inch. It wholly dismissed the airlines’ concerns and stuck with its conditions: To gain antitrust clearance for the (JV), the carriers would have to divest 24 slot pairs for Mexico - USA services at Mexico City International Airport (MEX) and 6 slot pairs for USA - Mexico services at New York (JFK) International Airport. The (DOT) additionally limited the (JV)’s antitrust immunity to 5 years, after which the airlines will have to reapply.
The (DOT) gave (DAL) and (AMX) (which wanted to divest just 8 slot pairs at (MEX), none at (JFK) and have indefinite antitrust immunity) 7 business days to accept its terms. Take it or leave it.
And the airlines have now accepted, as the (DOT) surely knew they would. Why? Because while avoiding the slot divestitures would have been ideal, the divestitures are pretty minor in the grand scheme of things, especially since (DAL) is in the process of increasing its ownership stake in (AMX) to 49%. (DAL) has just essentially added Mexico City, Monterrey and Guadalajara to its North American hub network of Atlanta, Detroit, Los Angeles, Minneapolis St Paul, New York (JFK), Salt Lake City and Seattle. (MEX), where (DAL) and (AMX) will co-locate facilities and coordinate flight schedules, will become a huge asset for (DAL).
(DAL) knows there is really nowhere to grow in the mature USA domestic market. But Mexico is still a developing air transport market where millions of bus travelers have been transformed in recent years into low-cost carrier (LCC) airline passengers. As (AMX) (CEO) Andrés Conesa recently said, once passengers get accustomed to air travel, they may eventually migrate from (LCC)s to long-haul services on more traditional carriers. “These passengers that used to travel by bus are flying with (LCC)s, but in the future they may be flying with us,” he commented.
(DAL) (CEO) Ed Bastian has also noted that (AMX) is popular with young passengers, who obviously will travel the most over the long term. He has conceded (DAL) still has a ways to go to become “the airline of choice of the next generation.”
For (AMX), accepting the (DOT)’s terms is a no-brainer. Gaining access to what Conesa has called a “wave of traffic” from the USA via (DAL) is a major win for (AMX), boosting its connecting traffic through it hubs. The (JV) also effectively seals (DAL) becoming a 49% owner of (AMX), giving (AMX) serious long-term financial stability.
It additionally gives (AMX) access to an operating structure (the transnational (JV)) that Conesa and other major Latin American airline (CEO)s believe is critical to those carriers’ aspirations of becoming truly global airlines. European and USA carriers have gained significantly from a “very developed” transatlantic (JV) structure, Conesa said recently, adding, “What we’re asking, is to be on the same level as other airlines.”
I wonder whether the airlines are regretting the tone of their response to the (DOT)’s conditions. It was so over the top (“unprecedented,” “untethered”) that I suspect the (DOT) didn’t take it too seriously. The department confidently called the airlines’ bluff, knowing they were unlikely to actually scuttle the (JV) rather than accept the (DOT)’s requirements. What if (DAL) and (AMX) had taken a more magnanimous line and indicated a willingness to negotiate? Would the (DOT) have considered, for example, going from 24 to 16 slot pair divestitures at (MEX), essentially splitting the difference between the airlines and the (DOT)?
There is a risk to the carriers in the expiration of the (JV)’s antitrust immunity after 5 years. What if, say, a 2nd-term President Trump’s (DOT) gives a thumbs down to a USA airline collaborating so closely with a Mexican airline? But that’s way down the road, and the airlines have plenty of time to prove the (JV)’s worth to regulators.
There’s real logic behind this (JV). Particularly in commercial aviation, it makes sense to view North America (Mexico, the USA and Canada) as a single market. The (DAL) - (AMX) (JV) is the 1st genuine attempt in the airline industry to do so.
January 2017: News Itewm A-1: Aeromexico (AMX) begins 2x-daily Mexico City - San Pedro Sula service on January 10 and 2x-daily, Mexico City - Managua service on February 7.
(AMX) will launch Mexico City - Seoul 787-8 service starting May 27.
The service will be operated 4x-weekly. From Mexico City, the 787 will make a stop in Monterrey, Mexico, before continuing on to Seoul. The flights from Seoul to Mexico City will be nonstop. Seoul will be (AMX)’s 3rd Asian destination; (AMX) currently serves Shanghai and Tokyo. (AMX)’s 787-8s are configured to carry 243 passengers, including 32C in business class.
Aeromexico (AMX) noted that Mexico is South Korea’s top trading partner in Latin America while South Korea is Mexico’s 6th-largest trading partner overall. “Aerial connectivity has a positive impact on tourism flows and is a fundamental axis to maintaining our competitive position in the world,” Mexican Tourism Minister Enrique de la Madrid Cordero said.
News Item A-2: "Delta - Aeromexico Execs Appointed to Lead (JV)" by Mark Nensel email@example.com, January 23, 2017.
Delta Air Lines (DAL) and Aeromexico (AMX) have announced leadership changes as the 2 carriers move to establish a trans-border joint venture (JV) between Mexico and the USA.
(DAL) VP Seattle Mike Madeiros was appointed (COO) of (AMX), and (DAL) VP Latin America & the Caribbean Nicolas Ferri was named VP Mexico and Aeromexico/Delta Joint Business.
The move follows the 2 carriers’ acceptance in December 2016 of conditions demanded by the USA Department of Transportation (DOT) in its antitrust immunity ruling before the airlines could move forward with their planned (JV).
(DAL) and (AMX) ultimately agreed to divest 24 slot pairs at Mexico City International Airport and 4 slot pairs at New York (JFK) International Airport. “These strategic moves are critical to our deepening partnership with (AMX) and to helping both airlines realize synergies across our operations and commercial entities,” (DAL) (CEO) Ed Bastian said. “These leadership moves continue our history in forging strong cross-border alliances.”
Madeiros will report directly to (AMX) (CEO) Andres Conesa. Madeiros joined (DAL) in 1988, starting as an airport customer service agent in Raleigh-Durham, North Carolina, before rising to VP New York Operations at (JFK). He was (DAL)’s VP Global Human Resources & Talent Development prior to being named VP Seattle.
Ferri will be based in Mexico City and will report to (DAL) President International Steve Sear. Ferri will oversee both (DAL)’s commercial activity in Mexico and the implementation of the (DAL)/ (AMX) (JV). Previously based in São Paulo, Brazil, Ferri has been VP Latin America & the Caribbean for Delta since 2011. Prior to joining (DAL), Ferri was VP Commercial for the Oneworld (ONW) alliance.
“We expect that effective early in (Q2) we will be able to start our Joint Cooperation Agreement (JCA) with (AMX),” Ferri said. “Furthermore, during the 2nd quarter of the year, we should complete our tender offer to own up to 49% of the outstanding capital stock of Grupo Aeromexico.”
(DAL) said new officers in Seattle and for the rest of Latin America will be announced soon.
(DAL) additionally said it remains committed to Seattle, where Alaska Airlines (ASA) also has a major presence, and said it will announce flights to 7 new destinations from Seattle later this year as well as expanding service to existing destinations from Seattle.
737-8AS (29927, XA-AMZ), ferried Jakarta to Mexico City. 2 E190-100AR (037, XA-ALZ; 043, XA-AEWC) for Aerolitoral (AeroMexico Connect), Ex-(N676BC & N680BC), Nordic Aviation Capital leased.
March 2017: News Item A-1: Delta Air Lines (DAL) has acquired an additional +32% of Grupo Aeromexico (AMX)’s outstanding shares for approximately $620 million, and now owns 36.2% of Aeromexico (AMX). (DAL), which already owned a 4.2% stake in Mexico City-based (AMX), acquired 228 million additional shares at MXN53 ($2.71) per share in the tender offer. (DAL) holds options to acquire another 12.8% stake in (AMX), so eventually it could own 49% of (AMX).
(DAL) and (AMX) late last year gained regulatory approval to establish an antitrust-immunized joint venture (JV) for transborder flying. Both carriers are members of the SkyTeam (STM) alliance.
(DAL) (CEO) Ed Bastian said the completion of the tender offer “is yet another milestone that strengthens the (DAL) - (AMX) relationship as we move toward implementing our joint cooperation agreement in the 2nd quarter.”
News Item A-2: Aeromexico (AMX) contracted with "Discover the World Marketing" to help re-establish its presence in Bolivia.
News Item A-3: Aeromexico (AMX) agreed to lease a 2nd Boeing 787-9 from Air Lease Corporation (ALE) for delivery in June 2018.
May 2017: News Item A-1: Grupo Aeromexico reported a -MXP258 million/-$13.8 million net loss in the 2017 1st quarter, reversed from a +MXP161 million net profit in the year-ago quarter.
The company said the (1Q) financial results reflected the negative impact of a +64.4% increase in fuel prices year-over-year (YOY), combined with a -12.5% depreciation of the Mexican peso against the USA dollar.
On March 10, Delta Air Lines (DAL) purchased an additional 32% of Grupo Aeromexico’s outstanding shares, bringing (DAL)’s direct holding of the company to 36.2%. (DAL) holds options to acquire an additional 12.8% of (AMX)’s shares, bringing (DAL)’s ownership stake to nearly 49%. (DAL) and (AMX) gained regulatory approval to establish an antitrust-immunized joint venture for transborder flying in late 2016. Both carriers are members of the SkyTeam (STM) alliance.
The company’s 1st-quarter revenue increased +17.5% to MXP17.2 billion while expenses rose +19.5% to MXP13.6 billion. The group’s operating profit for the quarter was +MXP533 million, down -17% (YOY). The quarterly operating margin was 3.8%, down -1.5 points from (1Q) 2016.
Aeromexico (AMX)’s airplane leasing expenses increased +18.6% (YOY) to MXP2 billion, with depreciation and amortization expenses growing 40.5% (YOY) to MXP1 billion. The group attributed the rise in each category to the “impact of more modern and larger airplanes being incorporated into the fleet as well as reflecting the company’s strategy of moving to a more balanced fleet of owned versus leased airplanes over time.”
Aeromexico (AMX)’s system traffic for the 1st quarter was up +10.3% (YOY) to 8.7 billion (RPK)s on a +7.9% rise in capacity to 11.2 billion ASKs, producing a load factor of 78% LF, up +1.7 points from (1Q) 2016.
(AMX)’s revenue growth during the quarter was attributable to combined passenger revenue growth, higher ancillary revenues and increased cargo revenue, the company said. 1st-quarter air cargo revenue increased +27.9% (YOY) to MXP963 million, attributable to (AMX)'s new 4 Boeing 787-9s, including 1 delivered during the quarter.
In addition to the 787-9s, (AMX) has added 3 737-800s, 8 Embraer E190s (2 of which were delivered in (1Q) 2017), 1 E170 during the past year, partially offset by re-deliveries of 1 777, 3 E175s and 5 ERJ-145s for a net increase of 7 airplanes.
The group’s operating fleet as of March 31 totaled 133 aircraft, comprised of 34 737-800s, 19 737-700s, 13 787s and 3 777s (all flying for mainline carrier Aeromexico (AMX); and 39 E190s, 13 E170/E175s and 12 ERJ-145s (all flying for the Group’s regional carrier Aeromexico Connect).
News Item A-2: While the USA and Mexico have disagreements about land crossings of their mutual border, the 2 nations increasingly agree on brisk cross-border air travel. And Mexico’s domestic airline market has been uncharacteristically vigorous, long growing at double-digit rates and up +14% in the 1st 2 months of 2017, even while the Mexican economy chugged along at 2% to 3%.
News Item A-3: Final Aeromexico (AMX) ERJ-145 flight will be this month, from Houston (IAH) to Monterrey.
June 2017: News Item A-1: Aeromexico (AMX) and India’s Jet Airways (JPL) have signed a memorandum of understanding (MOU) to start code sharing and allowing passengers to gain reciprocal frequent flier benefits. The (MOU) was signed by (AMX) (CEO) Andrés Conesa and (JPL) Chairman Naresh Goyal this month at the (IATA) (AGM) in Cancun, Mexico. The (MOU) calls for code sharing on flights from major European airports that both carriers serve.
(AMX) initially will place its code on (JPL)’s London Heathrow (LHR) - Mumbai and (LHR) - Delhi flights. Jet Airways (JPL) will initially place its code on Aeromexico (AMX)’s (LHR) - Mexico City flights.
The code sharing will begin later this year subject to government approvals, the airlines said in a joint statement. “This achievement is a manifest of our will to continuously offer new flight destinations to our passengers,” Conesa said. Goyal added, “We are confident that this new code share partnership will stimulate the demand for business and tourist travel between India and Mexico.”
News Item A-2: June 2017: Mexico’s federal consumer attorney’s office Profeco has fined 5 airlines for charging fees on customers’ 1st checked bags on flights from Mexico City to the USA and Canada.
The fines, imposed on Mexican airlines Aeromexico (AMX), Interjet (AAE), Volaris (VLS) and VivaAerobus (VVS), as well as New York-based JetBlue Airways (JBL), total MXP22.4 million/$1.4 million.
Profeco said the airlines violated provisions of Mexico’s consumer protection law and civil aviation regulations. The federal agency also said the sanctioned airlines were found to have “engaged in misleading advertising, discriminatory acts, abusive clauses in their membership contract and other practices that violate the rights of passengers.”
Profeco said it is keeping open potential proceedings against United Airlines (UAL) and American Airlines (AAL) for the same infringement, and will resolve the matter regarding the 2 USA airlines in coming days.
The fines were levied on the same day new provisions of Mexican consumer protection and civil aeronautics laws went into effect. Under the civil aviation law, passengers have the right to transport, for free, 1 checked bag weighing up to 25 kg/55 lbs and up to 2 pieces of hand luggage of not more than 10 kg each on national and international flights originating from Mexico.
Profeco said airlines are required to inform passengers of their Civil Aviation Act rights, which stipulate the baggage allowances, when purchasing their tickets.
Aeromexico (AMX) received the largest fine (MXP6.3 million), followed by Interjet (AAE) (MXP5.1 million), Volaris (VLS) (MXP4.5 million), VivaAerobus (VVS) (MXP 4.2 million) and JetBlue (JBL) (MXP2.3 million).
July 2017: Aeromexico (AMX) began 2 new international routes at the beginning of July. The more significant was (AMX)’s 4x-weekly service from Mexico City (MEX) to Seoul Incheon (ICN) which launched on July 2. The service, which involves a tech-stop at Monterrey on the outbound flight, will be flown using (AMX)’s 787-8s. No other carrier serves this route and it becomes the 1st link from South Korea to a destination in Central or South America. Seoul becomes the SkyTeam (STM) carrier (AMX)’s 3rd destination in Asia, joining Shanghai Pudong and Tokyo Narita.
(AMX)’s other new route this week was from Guadalajara (GDL) to San Jose (SJC) in California. The route, launched July 1, will be flown 6x-weekly. Competition on the 2,593 km sector comes from Alaska Airlines (ASA) and Volaris (VLS), which both operate the service on a daily basis.
October 2017: News Item A-1: Grupo Aeromexico posted a +MXP339 million/+$18.6 million net profit for the 3rd quarter of 2017, down -49% from net income of +MXP665 million in (3Q) 2016. A combination of factors (increased financing costs associated with leasing of new aircraft, fuel hedging losses and approximately MXP250 million in lost operating income resulting from the September 7 and 19 earthquakes) contributed to the result.
News Item A-2: Japan Airlines (JAL) is looking to boost its access to the Mexican market through a new partnership with Aeromexico (AMX), which may also give (AMX) more Asian connections. The agreement is expected to begin in (JAL)’s 2018 fiscal year, which starts in April 2018. (JAL) does not have its own flights to Mexico, although Aeromexico (AMX) has a route from Mexico City to Tokyo Narita Airport that was increased to daily service in March.
News Item A-3: Etihad Airways (EHD) Engineering was selected by both Lufthansa (DLH) (Airbus A340-300s and A380-800s) and Aeroméxico (AMX) (Boeing 777s) to perform heavy maintenance checks.
News Item A-2: "WestJet (WJI) Changes Boeing Order to Include 737 MAX 10; 3Q Net Profit up +19.4%" by Kristin Majcher, (ATW) Plus November 1, 2017.
WestJet (WJI) has modified its Boeing commitments to include the 737 MAX 10 model, (WJI) told analysts during its 3rd-quarter earnings call on October 31. Under the amended agreement, (WJI) will take 7 737 MAX 10 airplanes instead of 7 737 MAX 8s originally slated for delivery between 2022 to 2025. It will also add +5 787-10 airplanes for delivery starting in 2022, raising its total firm 737 MAX orders from 50 to 55 airplanes. (WJI) will also change 7 787-9 orders to 4 787-8s.
December 2017: Delta Air Lines (DAL) and Canada’s WestJet (WJI) have signed a preliminary Memo Of Understanding (MOU) to form a joint venture (JV) that will include coordinated schedules and pricing on USA - Canada transborder flights.
(DAL) and (WJI) already code share, but the (JV) will lead to expanded code sharing and “seamless connections on the airlines’ extensive networks in the USA and Canada.”
(WJI) President & (CEO) Gregg Saretsky said the 2 carriers will have “fully reciprocal” frequent flyer program benefits under the (JV).
(DAL) and (WJI) plan to finalize the terms of the (JV) agreement in the 1st half of 2018 and aim to launch the (JV) in the 1st half of 2019. The (JV) requires the approval of both airlines’ boards and regulatory clearance from the USA and Canada. Given that pricing will be coordinated, the carriers will need to gain antitrust immunity from both countries’ governments.
“We anticipate that the agreement will be reviewed by USA and Canadian regulatory authorities,” (DAL) said. “On the USA side, this includes the Department of Transportation.”
(DAL) President International & Executive VP Global Sales Steve Sear said the carriers’ combined transborder network “captures 95% of demand between the 2 countries.”
The announcement of the proposed (JV) across the northern USA border comes 7 months after (DAL) launched a USA to Mexico transborder (JV) with Aeromexico (AMX). Sear noted that a (DAL) - (WJI) (JV) would be (DAL)’s 8th cross-border agreement with another airline that features a (JV) or an equity stake, or both.
Citing Aeromexico (AMX) and Air France (AFA) - (KLM), both of which are partly owned by (DAL) and have antitrust-immunized (JV)s with (DAL), Saretsky said a (DAL) - (WJI) (JV) will “open doors for [WJI] to play with those partners.”
(DAL) and (WJI) began interlining in 2011 and code sharing in 2012. Their cooperation caused a planned extensive code sharing accord between (WJI) and Southwest Airlines (SWA) to be terminated before it was implemented. (SWA), which had wanted to partner with (WJI) to extend its reach to Canada, said (WJI)’s plans with (DAL) were “inconsistent” with the (WJI) - (SWA) deal.
The (DAL) - (WJI) (JV) is slated launch around the same time the 1st of (WJI)’s 10 Boeing 787-9s is scheduled to be delivered in 2019. Both the addition of 787s and the (JV) with (DAL) mark key milestones for (WJI) as “we morph into a longer-haul international carrier,” Saretsky said.
February 2018: "Grupo Aeromexico 2017 Net Profit Hit by Rise in Fuel Costs, Inflation" by Mark Nensel (firstname.lastname@example.org), February 21, 2018.
Grupo Aeromexico reported a +MXP18 million/+$914,000 net profit for 2017, down -98.4% from MXP1.1 billion net income in 2016.
While economic growth in Mexico remained stable in 2017, as the country’s Gross Domestic Product (GDP) increased +2.3%, the peso appreciated +4.7% year-over-year (YOY) relative to the USA dollar and annual inflation hit 6.8%, the country’s highest rate in 17 years. The rise in inflation put pressure on peso cost line items. Increasing fuel prices took a toll as well, rising +34%, as peso-dominated fuel prices increased +16.3% (YOY) during the 4th quarter.
Aeromexico (AMX)’s full-year revenue increased +14% to MXP61.5 billion, reflecting a rise in passenger, cargo and ancillary revenue but partially offset by a drop-off in charter revenue. The airline incorporated 3 Boeing 787-9s into its fleet during the year, which contributed toward a +29.3% rise in air cargo revenue, as well as a +14.1% increase in international passenger revenue.
Aeromexico (AMX)’s total capacity grew +14.6%% during the year to 48.9 billion (ASK)s, as the airline continued to upgauge its fleet not only with new 787-9s but also with the addition of 4 737-800s and 9 Embraer E190s. 3 737-700s and 15 ERJ-145s were redelivered during the year, creating a net reduction of -2 aircraft in Grupo Aeromexico’s total fleet of 131 aircraft, as of December 31, 2017. The (AMX) group added 5 leased-in aircraft during the 4th quarter (2 737-800s and 3 E190s). 1 of the new 787-9s, under a finance lease agreement, was introduced during the 4th quarter as well.
The group’s 2017 expenses increased +15.9% to MXP58.4 billion, as fuel prices in pesos pressured expenses by MXP2.9 billion compared to 2016. Aeromexico (AMX) said labor costs were up +14.7%, attributable to the introduction of the new aircraft, as well the impact of inflation on contractual wage revisions. With the introduction of newer and larger aircraft, (AMX)’s full-year depreciation and amortization expenses increased +37.3% to MXP4.2 billion.
The group’s full-year operating income reached MXP3.1billion, down -12.9% (YOY), with an operating margin of 5.1%, down -1.6 points from 2016.
Passenger traffic grew +14.6% to 39.8 billion (RPK)s and the group averaged an 81.5% LF load factor, up +1.2 points, for the year. Yield was down -4.3% to MXP1.335. Total (RASK) increased +1.1% to MXP1.257 and total (CASK) increased +4.4% to MXP 1.224. (CASK) excluding fuel was down -4.1% to MXP 0.914.
(AMX) plans to maintain a fuel hedging policy with call type and call spread options equivalent to 50% of the group’s estimated fuel consumption for the next 12 months, with coverage levels starting at $1.78/gallon hedged up to $2.40/gallon.
March 2018: News Item A-1: "Aeromexico’s New Fare Structure Includes Basic Economy" by Mark Nensel (email@example.com), March 5, 2018.
The Delta (DAL) - Aeromexico (AMX) transborder joint venture (JV) began offering ultra-low-cost fares March 5 as (AMX) launched its “branded fares” concept and Delta Air Lines (DAL) touted the increasing range of basic economy fares on what is now >50% of (DAL)’s USA to Mexico flights.
(DAL) had already offered basic economy fares on flights to Cancun, Puerto Vallarta and Cozumel; the new route expansion includes several new Guadalajara and Mexico City flights, (DAL) said, adding it expects to have basic economy available on its entire global network by the end of 2018.
(AMX) said its new fare structure will be available on domestic flights in Mexico, as well as flights to and from the USA and Canada. (AMX) executives have said the new branded fares structure will appeal to flyers seeking bundled services that Mexican (LCC) competitors Interjet (AAE) and Volaris (VLS) do not offer.
Beyond basic fare, (AMX)’s new fare structure includes 5 progressively more value-added offerings: classic, flexible, (AM) Plus, comfort and premier.
(DAL) and (AMX) launched a (JV) in May 2017, which focused on utilizing the hubs of both carriers to provide passengers flying between the USA and Mexico with connecting options. (DAL) has hubs in Atlanta, Detroit, Los Angeles, Minneapolis-St Paul, New York (both LaGuardia and (JFK)), Salt Lake City and Seattle. (AMX) has hubs in Mexico City, Monterrey and Guadalajara.
(DAL) 1st introduced its basic economy fares (which involves a customer being willing to be seated anywhere on the aircraft, with no flight itinerary changes, no-checked baggage, no adjacent seating for passengers traveling together, among other restrictions) in 2012.
(DAL) was the 1st major USA airline to introduce the basic economy fare concept. Last October, while discussing the fare option in an analyst’s call, (DAL) President Glen Hauenstein said “the success of that product isn’t how many people buy it, but how many people don’t buy it and choose another product.”
News Item A-2: Aeromexico (AMX) took delivery of the 1st of up to 90 Boeing 737 MAX airplanes, to expand its network across the Americas.
(AMX)’s fleet transformation hit 2 major milestones in late February with the delivery of its 1st Boeing 737 MAX and the retirement of its last 777, leaving (AMX) with 3 basic fleet types.
(AMX)’s final 777 flight took place February 26 from Buenos Aires to Mexico City. The 777’s retirement, combined with last year’s accelerated phase-out of 15 Embraer ERJ-145 regional jets, leaves Aeromexico with E170s/E190s, 737s and 787s (the 3 fleet types it will build its network around while “bringing efficiencies, including training, maintenance, inventory and fleet productivity,” (AMX) (CEO) Andrés Conesa said.
On February 28, (AMX) took delivery of its 1st 737-8 (part of an order for 60 737-8s and 787-9s placed in 2012). (AMX)’s 1st 737 MAX is scheduled to enter service the week of March 12, (AMX) spokesperson confirmed. Initial 737 MAX routes will be between Mexico City and Monterrey, New York, Lima and Bogotá. It plans to take delivery of 5 737 MAX airplanes this year (all 737-8s).
With the changes, (AMX)’s fleet stood at 130 airplanes on March 1: 16 787s, 54 737s and 60 E-Jets. It plans to end the year with 132 aircraft, for a net addition of 1 airframe compared to its January 1 fleet. Changes from the current fleet through December include adding 1 E-Jet and 1 787, while removing 4 737NGs to offset 737 MAX deliveries.
Despite the almost-static fleet size, (AMX) will see system-wide (ASK)s grow in the high-single digits year-over-year (YOY), Conesa said. “That means for the domestic markets, (ASK) growth of between +3% and +5%, and for the international market, growth of around +16%,” he said.
The forecast is down from low-double-digit projections made late last year, “demonstrating our capacity discipline,” Conesa told analysts recently. Much of the growth will come via up-gauging (both via larger aircraft and longer routes. For instance, the new E-Jets are being deployed largely to feed traffic from Mexican cities to Delta Air Lines (DAL)’s USA hubs (part of the 2 airlines’ growing joint venture cooperation). Most of the ERJ-145s they replaced were deployed domestically, but rising inflation and fuel costs began to put pressure on these routes, leading (AMX) executives to accelerate their retirement last year. (AMX) cut domestic capacity -1% (YOY) in 2017, while growing system-wide (ASK)s +12.8%.
April 2018: Grupo Aeromexico posted a -MXP722 million/-$39.7 million net loss for the 2018 1st quarter, deepened from a -MXP328 million net loss in (1Q) 2017, as a result of a 7.8% appreciation in the MXP - USA dollar exchange rate as well as a +14.5% increase in peso-dominated fuel prices. The company reported MXP72 million in exchange-related losses for the 2018 1st quarter as “functional currency adjustments exceeded the impact of exchange rate-related operating adjustments.”
June 2018: Aeromexico (AMX) launched a new connection between Mexico City (MEX) and San Jose (SJC) on June 1. It will operate the 2,977 km sector daily with its mixed fleet of 737s. There is no incumbent competition on this airport pair, which will run as a seasonal service until August 31.
It joins (AMX)’s year-round link to the Californian city from Guadalajara. “We are pleased to see (AMX), our newest international airline partner, already expanding in Silicon Valley with important non-stop service to Mexico City as we begin our peak summer travel season,” said John Aitken, Director of Aviation, San Jose Airport. “Our community has responded favourably to (AMX)’s non-stop service to Guadalajara which began last summer, and we expect the same warm welcome for (AMX)’s additional and in-demand service to Mexico’s capital city.”
July 2018: Aeromexico (AMX) is leveraging network discipline and new ancillary revenue generation to offset rising fuel costs, domestic inflation, a weakening peso and overcapacity in some key markets, with its 2nd-quarter results offering solid evidence that its strategies are reaping the intended benefits.
(AMX) posted a 2nd-quarter +MXP112 million/+$5.7 million consolidated net profit, reversed from a net loss of -MXP555 million in the year-ago quarter.
August 2018: ACCDT: An Aeromexico (AMX) Embraer jet aircraft crashed this morning July 31st in Durango, by Christopher Sherman, The Associated Press (AP).
The Embraer E190-100AR (173 /08 XA-GAL) jet operating Flight AM2431 had been scheduled to fly from Durango to Mexico City. It was destroyed from catching fire, but all airplane crew and passengers escaped. All 99 passengers and 4 crew members (2 Flight Crew (FC) and 2 Cabin Attendants (CA)) made it safely off the plane, but 1 pilot (FC) was severely injured and was taken to the hospital to undergo surgery for a spinal injury and was considered to be in critical condition.
A USA passenger aboard the flight that crashed on takeoff in Durango in northern Mexico said Wednesday that a strong burst of wind and hail hit the Aeromexico (AMX) jetliner, apparently knocking it back to ground, where there were only moments to evacuate before it burned.
Alberto Herrera, a 35-year-old webpage engineer from Chicago, described the terrifying moments when the plane briefly became airborne, before smacking belly-down onto a field beyond the edge of the runway. “We started gaining speed and as soon as the airplane started taking off, all of the sudden the plane started struggling and it was getting hit with hail,” said Herrera, who was visiting the city of Durango for the baptism of his cousin’s baby.
“The higher up we went into the storm, the heavier the hail got and more wind got to us,” he recounted from his hotel room. “Then all of a sudden the plane started rocking and it started seriously moving around and then hitting the ground.”
The fire around the wings eliminated the possibility of using wing exits, so Herrera said he moved toward a back exit and started helping other people leave the aircraft. Many walked to the end of the runway to wait for emergency vehicles.
Durango State Governor Jose Aispuro said about 49 people were hospitalized with injuries. Some people had burns on a quarter of their bodies, said Durango State Health Ministry spokesman Fernando Ros. Aispuro said all were expected to live. Aispuro said it was too soon to speculate on the cause of the crash. Mechanical failure and human error could be factors, but certainly the weather wasn’t favorable.
An Illinois priest was on the plane. The Roman Catholic Archdiocese of Chicago said the Reverend Esequiel Sanchez suffered some injuries, but was alert and resting.
Aeromexico (AMX) Chief Executive Officer (CEO) Andres Conesa described the day as “very difficult” and credited the timely reaction of crew and passengers for the lack of fatalities. Conesa said the passengers included 88 adults, 9 children and 2 babies. The crew onsisted of 2 cabin attendants (CA) and 2 pilots (FC). He said the jetliner had been sent for maintenance in February and the crew was well-rested, having started their work day in Durango.
See ACCDT video:
News Item A-1: "Aeromexico Posts (3Q) Net Loss on Currency Depreciation, High Fuel Prices" by (ATW) Mark Nensel (firstname.lastname@example.org), October 18, 2018.
Aeromexico (AMX) reported a -MXP617 million/-$32.9 million net loss for the 3rd quarter of 2018, reversed from a MXP344 million net profit in the year-ago quarter.
(AMX) cited a combination of a nearly -7% year-over-year (YOY) depreciation of its national currency and a +46% increase in Mexican peso-dominated fuel prices for the loss.
(AMX)’s revenue for the quarter increased 14.4% YOY to MXP18.2 billion, as ancillary revenue generated by upgrades and seat selection options soared (as part of (AMX)’s branded fare structure introduced in March) to MXP1.4 billion, up +27.5% compared to (3Q) 2017.
Revenue per available seat km (RASK) rose +7.4%, while yield increased +6.5%. (AMX)’s costs per (ASK) in pesos increased +15% (YOY) while costs in dollars rose +7.8% during the quarter. Inflation in Mexico was about +5% for the 12 months ended September 30, pressuring a number of peso cost line items, including salaries and related expenses (up +14.5% (YOY)), maintenance expenses (up +5.2%) and aircraft leasing expenses (up 9.7%).
(AMX)’s operating expenses increased +26% (YOY) during the quarter to MXP14.8 billion, driven not only by currency devaluation and peso-dominated costs, but also by increased capacity.
(AMX)’s +6.5% (YOY) rise in capacity reflected (AMX)’s ongoing upgauging​ strategy to replace its fleet with modern, cost-efficient airplanes. During the quarter, (AMX) added 2 Boeing 737 MAX 8s to its fleet while simultaneously retiring 2 737-700s, 2 737-800s and an Embraer E190. The past year has also seen the introduction of 3 787-9s to its fleet, plus an additional 3 E190s and 2 737 MAX 8s. 71.4% of (AMX)’s total capacity growth came from international (ASK)s.
Total system traffic was up +6.6% for the quarter to 11.6 billion (RPK)s. Load factor came in at 84.5% LF, up +0.1 point (YOY).
(AMX) reported MXP235 million in operating income for the 2nd quarter, with an operating margin of 1.3%, down nearly -82.6% from the year-ago-quarter.
In its quarterly statement, (AMX) noted the July 31 loss of 1 of its E190s in a crash at Durango International Airport. No human casualties were reported in the incident; all 99 passengers and 6 crew on board survived. In September, investigators announced they had found evidence of a microburst above the airport as Aeromexico Connect Flight 2431 prepared for its departure to Mexico City.
October 2018: "Mexicans to Decide Fate of New International Airport" by Ben Goldstein (ATW) Plus, October 24, 2018.
Mexicans will vote October 25 to decide the fate of the new Mexico International Airport (NAIM) project, which has come under fire from the country’s President-elect over construction costs and environmental impacts.
Just >1 million people (2% of the country’s population) are expected to vote during the 4-day referendum in 1,000 voting stations set up in town squares across the country. The vote will determine the future of the partially built airport at Texcoco, roughly 25 miles NE of Mexico City. Voters will be asked to decide whether to continue that construction, or to nix it and instead build new runways at the Santa Lucia (NLU) military base, in addition to expanding the existing Mexico City airport (MEX), as well as the Toluca International Airport (TLC). The new airport, which is about 30% complete, would replace the Mexico City International Airport, aiming to serve about 120 million travelers annually.
Airlines for America (A4A), in an October 22 letter to Mexico’s President-elect Andrés Manuel López Obrador, voiced support for continuing construction of the (NAIM), asserting “the new airport will drive significant economic value for Mexico and other countries around the world.” (A4A) said the airport will “continue to boost the Mexican economy and benefit taxpayers through heightened air travel demand, while offering an increase in operational safety through straight and obstacle-free landing and takeoff trajectories.”
Other groups including (IATA), ámara Nacional de Aerotransportes (CANAERO), Latin American and Caribbean Air Transport Association (ALTA), Air Canada (ACN) and Air France (AFA) have also come out in support of continuing construction of the (NAIM).
Billions of dollars and thousands of tons of concrete have already gone into the new project, which is projected to cost a total of $15 billion. The Mexican government has also issued $6 billion in airport bonds to finance the project, backed by taxes paid by the existing international airport as well as the facility under construction.
López Obrador heavily criticized the project on the campaign trail, arguing that his alternative plan to expand the existing airport in Mexico City and add new runways at Santa Lucia would cost only $3.7 billion, although that figure has been disputed by the Mexican College of Civil Engineers. His political allies have also criticized the airport project as primarily benefiting elite interests and posing a substantial harm to the local environment.
While the vote is not legally binding, López Obrador has vowed to honor the results when he becomes President on December 1.
November 2018: See video of Aeromexico 787 N782AM landing:
Click below for photos:
AMX-737 MAX - 2012-07
AMX-737-700 - 2012-02
AMX-737-700 - 2015-07.jpg
AMX-767-300 - 2015-12.jpg
AMX-777-2Q8ER - 2015-08.jpg
AMX-787 - 2013-08
AMX-787-8 - 2017-06.jpg
AMX-787-8 127-353087 N965AM - 2016-10.jpg
AMX-E170 - 2012-07
AMX-E175 - 2013-05
7 737-700/737-800 (CFM56-7B):
0 737-73V (32423, N423AM), MACQUARIE LEASED 2011-02, EX-(G-EZKB).
0 737-76Q (CFM56-7B22) (1156-30283, N997AM), EX-(EZY), (BOU) LEASED 2004-12. WITH WINGLETS. 12C, 112Y.
15 737-752 (CFM56-7B22) (1381-33783, /03 XA-AAM; 1393-33784, /03 N784XA; 1398-33785, /04 XA-CAM; 1417-29363, /04 N851AM; 1421-33787, /04 XA-FAM, 6/05; 1439-33788, /04 N788XA; 1524-33789, /04 XA-HAM; 1533-33790, /04 XA-NAM; 1557-33791, /06 N853AM; 1565-28262, /04 N904AM; 1571-33792, /04 N855AM; 1586-29356, /04 N906AM; 1597-33793, N857AM; 1601-30038, /04 N908AM; 1761-34294, /05 XA-QAM; 1765-34295, /05 XA-VAM; 1783-34296, /05 XA-WAM; 1808-34297, /05 XA-MAY; 1812-34298, /05 XA-ZIM; 1814-32842, /05 N8742AM; 33786, /04 N850AM; 34293, /05 A-PAM; 1829-34299, /06 EI-DNB; 1848-34300, /06 EI-DNC; 2011-35785, /06 XA-GOL; 2098-35786, /06 XA-AGM; 2111-35787, /06 EI-DRE; 2122-35117, /06 EI-DRD; 2348-35122, /07 XA-MAH; 2374-35123, /07 XA-CTG; 2456-35124, /07 XA-CYM), (ILF) 7 YEARS LEASED; LOMBARD AVIATION CAPITAL LEASED. 34298; 34298; RETURNED (GEF) 2009-06. 34299; RETURNED (TCI) 2009-12. WITH WINGLETS. 34300; RETURNED (TCI) 2009-11. 34299; RETURNED 2010-02. 12C, 112Y.
1 737-8AS (CFM56-7B) (29927, XA-AMZ), FERRIED JAKARTA TO MEXICO CITY 2017-02.
1 737-8CX (CFM56-7B) (1041-32359, N359AM), MACQUARRIE IRELAND LEASED 2010-04. EX-(PR-GOJ).
0 737-8K2 (CFM56-7B) (251-28376, PH-HZD; 277-28377, PH-HZE; 291-28378, PH-HZF), (TAV) LEASED 2010-11 TO 2011-04.
1 737-8K2 (CFM56-7B) (34169, PH-HZD), (TAV) WET-LEASED 2011-11.
3 737-8Q8 (CFM56-7B) (35304, 2010-02; 35306, 2010-04; 35308, 2010-06), (ILF) LEASED.
15 737-800 (CFM56-7B).
2 737-800 (CFM56-7B), (ALE) LEASED 2011-05 TO MID-2017.
4 737-800 (CFM56-7B), (AZV) LEASED 2015-03.
11 737-852 (CFM56-7B) (2037-35114, /06 EI-DRA - SEE PHOTO, 2006-09; 2070-35115, /06 EI-DRB; 2081-35116, /06 EI-DRC; 2273-35119, /07 XA-MIA; 2290-35120, /07 XA-ZAM; 2327-35121, /07 XA-JOY; 36703, XA-AMB, 2013-06; 36704, XA-AMC, 2013-07; 36707, XA-AML, 2014-08; 4949-39944, XA-AMM, 2017-12; 39945, XA-AMN, 2014-08, ).
3 +87 ORDERS 737 MAX 8 & 9 (LEAP-1B), 1ST 2018-03.
1 737 MAX 8 (LEAP-1B) (43707, XA-MAO), EX-(N1786B) (SMBC) AVIATION CAPITAL LEASED 2018-08.
0 747-300, 14 MONTH LEASED 1999-06.
2 757-2Q8 (PW2037) (541-25624, /93 N801AM; 590-26268, /94 N803AM; 558-26270, /93 N802AM; 592-26271, /94 N804AM; 594-26272, /94 N805AM; 597-26273, /94 N806AM), 1 WET-LEASED TO (NAB). (ILF) LEASED, (ETOPS). 26270 RETURNED (TBC) 2004-08. 25624 RETURNED 2005-06. 26271; RETURNED (ILF) 2006-03. 26268; 26273; RETURNED 2006-10; LEASED TO (SNS). 26272; RETURNED 2007-11. 12C, 179Y.
0 757-2Q8 (PW2037) (957-30045, /01 N301AM), (ILF) 3 YEAR LEASED, RETURNED, LEASED TO (TCV) 2004-03. 12C, 179Y.
0 757-23A (PW2037) (510-25490, /92 N490AM), EX-(PER), (AWW) LEASED. RETURNED 2001-12. LEASED TO (FIH) 2005-06. 18C, 171Y.
0 757-29J (PW2037) (588-27203, /93 N703AM), EX-(FAT) 1999-12, (ILF) LEASED. RETURNED 2008-03 & LEASED TO (EOS). 18C, 171Y.
0 767-2B1ER (PW4056) (511-26471, /93 XA-OAM "ZAMBEZE"), BOUGHT FROM (LAM) 2004-06. 10F, 28C, 154Y.
0 767-25DER (261-24733, N473AG) (ACG) ACQUISITIONS LEASED 2010-11.
0 767-283ER (PW4056) (301-24727, /90 XA-TOJ; 305-24728, /90 XA-TNS), EX-(SAS), 24728, (AAR) 6 YEAR LEASED 1999-07. 24728; RETURNED 2006-06. 18C, 172Y.
0 767-284ER (PW4056) (297-24716, /90 XA-RVZ; 307-24762 /90 XA-RVY), EX-(LAN)/(TBL), (AWW) LEASED, (ETOPS) EQUIPPED. 24716; RETURNED 2006-07. 18C, 172Y.
0 767-3Q8 (PW4062) (727-27618, /98 XA-APB), (ILF) 77 MONTH LEASED 1998-11. 10C, 223Y.
0 767-3YOER (PW4060) (351-24947, XA-MAT), (BBB) LEASED 2009-01.
0 767-3YOER (PW4060) (450-26200, /92 N2104), (GEH) LEASED, RETURNED 2000-05, LEASED TO (CDI).
0 767-300ER (PW4060) (35121, XA-JOY), HAS CHARLIE BROWN AND SNOOPY DESIGNS ON FUSELAGE 2015-11.
0 767-383ER (330-24849, XA-MIR - - SEE PHOTO - - "AMX-767-2008-11"), RETURNED 2009-07. TO (AAR), LEASED TO (RYN) 2009-08.
0 777-2Q8ER (GE90-85B) (365-28689, /01 N774AM, 2006-11; 373-28692, /01 N776AM, 2007-09 - SEE PHOTO; 28693, /01 EX-(VAR) 2007-08; 554-32718, N745AM, 2006-02 - SEE PHOTO; 562-32719, N746AM, 2006-04), (ILF) LEASED. 28692, EX-VARIG (VAR)- (NOW DEFUNCT, BUT WOULD HAVE CELEBRATED ITS 75TH ANNIVERSARY!). LAST 777 RETIRED 2018-02. 49C, 228Y.
7 787-800 DREAMLINER (GEnx-1B64) (115-35306, /N961AM - - SEE PHOTO - - "AMX-2013-08 - 1ST 787-8" 2013-08; 122-35307, N964AM, 2018-10), 37167, N783AM 2015-11. (ILF) LEASED. 32J PREMIER CLASS (LIE-FLAT SEATS), 32C, 211Y.
2 787-8 DREAMLINER (GEnx-1B70), (2015-02) (TCI) LEASED.
8 +12 ORDERS 787-9 (1ST - "QUETZALCOATL" 2016-10), 36C, 238Y.
0 DC-9-32 (JT8D-17) (99-47006, /67 XA-SDF), EX-(PSA).
0 DC-9-32 (JT8D-17) (1014-48150 RETURNED JETRAN 2003-09), 48129 RETURNED 2004-02. 48128 RETURNED (GEF) 2004-04. LEASED TO (BRV). 48151 SOLD TO (JS) AVIATION 2007-08; 12C, 90Y.
0 MD-82 (JT8D-217C) (53066; & 53119; EX-(FAT), 1 EX-(ACH). 49126 (TCI) LSD. 48067 RTND (ACG), LEASED TO (LAV) 2004-05. 53066; RETURNED 2008-10. 12C, 133Y.
0 MD-82 (JT8D-217C) (1031-48068, N1003Y), RETURNED TO BANK OF AMERICA 2006-10.
0 MD-82 (JT8D-217C) (48079, 2000-04; 1139-49222, N130NJ, 2004-09), EX-(ASA), (PSS) LSD 2000-04. 48079; 49222; RETURNED 2005-05, LEASED TO (TAL). 12C, 135Y.
0 MD-82 (JT8D-217C) (1087-49150; 1088-49151, 7/01), EX-(FIN), LEASED 2000-09. 49150 RETURNED 2004-10. 12C, 135Y.
0 MD-83 (JT8D-219) (1592-49848, XA-SWW; 49845), EX-(AEG), (PSS) LEASED 1999-12. 49845; 49848; RETURNED, LEASED TO (TAL). 49848; LEASED TO (JPA) 2007-03. RETURNED 2007-04. 49848; OPERATIONS FOR (AMX) TRAVEL (CHARTER SUBSIDIARY). 12C, 135Y.
0 MD-83 (JT8D-219) (1331-49397, N838AM - - SEE PHOTO - - "AMX-MD-83-2008-08;" 49643; 49658, 1438-49659, N583MD; EX-(ASA). 49658 RETURNED 2005-05, 49643; RETURNED 2005-10; LEASED TO (WJE). 49397; & 49659; OPERATIONS FOR (AMX) TRAVEL (CHARTER SUBSIDIARY). 12C, 125Y.
0 MD-83 (JT8D-219) (1578-49826, N861LF; 1718-53051, N881LF), 49826; 53051; RETURNED (TIA) 2006-02. 12C, 135Y.
0 MD-87 (JT8D-219) (1430-49404, N204AM; 49405, N205AM), EX-(FIN), (FSB) LEASED 2000-11. 49405 RETURNED 2009-03. 12C, 102Y.
0 MD-87 (JT8D-219) (1681-49413, XA-TXH), RETURNED (PSS) 2009-02. 12C, 102Y.
0 MD-87 (JT8D-219) (1541-49587, N753RA), EX-(AAL). 12C, 102Y.
0 MD-87 (JT8D-219) (49585; 49586), EX-(SAS), 2001-12. 49585; RETURNED 2009-04. 12C, 102Y.
0 MD-87 (JT8D-219) (1617-49641, N754RA), BOXEN LEASED 2003-06. PARTED OUT 2009-06. 12C, 102Y.
0 MD-87 (JT8D-219) (1464-49671), EX-(SUR), (ILF) LEASED 1999-11. RETURNED 2009-06. 12C, 102Y.
0 MD-87 (JT8D-219) (1549-49724, N1075T, EX-(GAR) (1614-49706, XA-TWT, 2003-03; 1333-49389, XA-TXC - - SEE ATTACHED PHOTO - - "AMX-MD-87-2008-06"). 49724; RETURNED 2006-12. 49389; OPERATIONS FOR (AMX) TRAVEL (CHARTER SUBSIDIARY). 49706; SOLD TO ANDES LINEAS AEREAS 2009-07. 12C, 102Y.
0 MD-87 (JT8D-219) (1621-49727), (PSS) LEASED 2002-08. RETURNED 2007-08. SOLD TO (ACO) 2008-11. 12C, 102Y.
0 MD-87 (JT8D-219) (1674-49780, XA-TWA), (PSS) LEASED 2002-10. SUB-LEASED TO (MCJ) 2009-06. 12C, 102Y.
0 MD-87 (JT8D-219) (1652-49799, /89, N505AA), EX-(RNO), (TCI) 5 YEAR LEASED 2000-06. RETURNED, LEASED TO (WJE) 2005-12. 12C, 102Y.
0 MD-88 (JT8D-219) (1623-49761, N158PL), RETURNED TO POLARIS. 53174; LEASED TO (ALA) 2007-12. 49929; 53175; LEASED TO (ALA) 2008-02. 49764; RETURNED POLARIS 2008-02. 49765; RETURNED 2008-04. 49926; LEASED TO (ALA) AS (LV-BTW) 2009-01. 49928; LEASED TO (ALA) 2009-03. 12C, 125Y.
0 DC-10-15, PARKED, 48275 TO (SKJ), (IAL) LEASED. RETURNED.
0 DC-10-30, 1 RETURNED.
1 FAIRCHILD METRO 23.
0 ERJ-145, AEROMEXICO CONNECT OPERATIONS, ALL PHASED OUT 2017-12. 50Y.
3 EMBRAER E170-100 SU (0126, XA-ACX; 0137, XA-ACY, 2013-07; 0139, XA-SAC), AEROMEXICO CONNECT OPERATIONS 2012-05. 76Y PAX.
8 EMBRAER E175, AEROMEXICO CONNECT OPERATIONS 2013-05. TO REPLACE ERJ-145 AIRPLANES. 86Y.
30 EMBRAER E190-100AR (CF34-10E) (037, XA-ALZ, 2017-02; 043, XA-AEC, 2017-02; 0557, XA-ACT, 2012-07; 173, /08 XA-GAL - DESTROYED IN ACCDT 2018-07-31), FOR REGIONAL SUBSIDIARY (AMX) CONNECT OPERATIONS. 3 (SIL) & NORDIC AVIATION CAPITAL LEASED 2014-04. 11C, 88Y.
JAVIER ARRIGUNAGA GOMEZ DEL CAMPO, CHAIRMAN (2015-05).
ANDRES CONESA, CHIEF EXECUTIVE OFFICER (CEO).
MAURICIO NIETO, (CEO) AEROMEXICO (AMX) CARGO.
MIKE MADEIROS, CHIEF OPERATING OFFICER (COO), EX-(DAL) (2017-01)
(2017-01): Mike Madeiros will report directly to (AMX) (CEO) Andres Conesa. Mike joined Delta Air Lines (DAL) in 1988, starting as an airport customer service agent in Raleigh-Durham, North Carolina, before rising to VP New York Operations at (JFK). He was (DAL)’s VP Global Human Resources & Talent Development prior to being named VP Seattle.
CORNEEL KOSTER, CHIEF OPERATING OFFICER (COO).
ANKO VAN DER WERFF, EXECUTIVE VP REVENUE MANAGEMENT & CHIEF REVENUE OFFICER.
RICARDO SANCHEZ BAKER, CHIEF FINANCIAL OFFICER (CFO) & VP FINANCE.
JOSE KURI, SENIOR VP USA DIVISION.
DAVID NAKAMURA, SENIOR VP MAINTENANCE & ENGINEERING.
ERIC MAYETTE, SENIOR VP FLIGHT SAFETY, SECURITY, & QUALITY.
JORGE GOYTORTUA, SENIOR VP GLOBAL SALES.
NICOLAS FERRI, VP MEXICO & AEROMEXICO (AMX)/DELTA (DAL) JOINT VENTURE (JV) BUSINESS, (2017-01).
MANRIQUE PALACIOS, VP OPERATIONS & MAINTENANCE.
JOSE MANUEL DIAZ DE RIVERA, VP COMMERCIAL.
JAVIER ALVAREDO, VP COMMERCIAL PLANNING.
CARLOS BONILLA, VP CORPORATE COMMUNICATIONS.
ERIKA MOORE, VP INTERNATIONAL DIVISION.
FRANCISCO GONZALEZ, VP MARKETING & SERVICES.
MIGUEL ANGEL SANCHEZ, VP HUMAN RESOURCES (HR).
ALBERTO CASTREJON, VP LOGISTICS.
ROLF HOEHN, VP USA.
OSCAR MEJIA, VP NORTH AMERICA SALES.
CESAR PACHECO, VP PROVISIONING & SUPPORT UNITS.
CAPTAIN VICTOR TORRES, CHIEF PILOT.
CAPTAIN MANUEL SANTA MARIA GUTH, CHIEF PILOT 757/767.
CAPTAIN GUSTAVO CERVANTES, CHIEF FLIGHT TRAINING.
CAPTAIN JUAN MUJICA, CHIEF PILOT MD-80.
CAPTAIN AGUSTIN MARQUEZ MENDEZ, CHIEF PILOT DC-9.
DAVID NAKAMURA, VP PROCESSES & PRODUCTIVITY (2000-12).
AGUSTIN ALMONTE, VP QUALITY CONTROL (QC) (1999-09).
HECTOR MORA, VP MAINTENANCE PROGRAMS (2000-12).
ARTURO BYRD, VP PRODUCTION PLANNING & CONTROL (2000-12).
FRANCISCO HERNANDEZ CANO, VP LINE MAINTENANCE (MEXMDAM) (1999-12),
HECTOR MORA, VP MAINTENANCE PROGRAMS.
DAVID NAKAMURA, VP PROCESSES & PRODUCTIVITY.
BENJAMIN HERNANDEZ, CORPORATE TECHNOLOGY DIRECTOR.
CHRISTIAN TEJADA, REGIONAL DIRECTOR CENTRAL AMERICA.
RAUL SIFUENTES, DIRECTOR 3RD PARTY SERVICES (2001-03).
CAPTAIN ALEJANDRO LUNA SOTURA, SENIOR MANAGER AIR SAFETY/SECURITY , (email@example.com) (MEXNYAM) (2001-12).
MANUEL JAQUEZ, WEST COAST REGIONAL MANAGER, USA DIVISION.
GABRIEL PARRA, WEST SALES REGIONAL MANAGER.
FAUSTINO MUNOZ VERA, MANAGER ENGINEERING (MEXOEAM) (1997-10).
CARLOS GONZALEZ AGUIRRE, MANAGER MODIFICATION ENGINEERING (MEXMRAM),
FAUSTINO MUNOZ, MANAGER OPERATIONS ENGINEERING (MEXOEAM) (firstname.lastname@example.org).
CARLOS NAJERA, PRODUCTION PLANNING MANAGER.
RICARDO LORA, HEAVY MAINTENANCE MANAGER.
LUIS SILVA, (ETOPS) FOCAL, CHIEF MAINTENANCE PROGRAM (MEXLHAM) (1997-10).