Low Cost Carriers in Mexico: Growth Prospects and Concerns



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Code : COM0088

Year :
2005

Industry : Transportation

Region : Mexico

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:Mexico's flagship airlines are Mexicana and Aeromexico, controlling 80% of Mexican market. But due to the high prices they charged, they started losing market share to other domestic airlines and US airlines since 2000.

Due to over capacity and saturation in the US aviation market, many US lowcost carriers entered Mexican market, which increased competition in the Mexican aviation market.

Many Mexican airlines includin gMexicana started their own lowcost airlines. But analysts are skeptical about the success of low cost airlines in Mexico because of the increasing fuel price and too many entrants simultaneously.

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