Mexico Looks to Boost Air Connectivity

Airline industry executives believe that Mexico holds the potential for enormous growth over the next few years.

Tourism to the country is growing exponentially and having the means to bring more travelers into Mexico is an important part of keeping tourism on an upward trajectory.

The number of nonstop routes, including routes to Japan, China, and South Korea, have grown by 6 percent annually on average over the last five years. Mexico's air trips per capita are ahead of China and similar to Russia and has enormous upward potential. Mexico is among the top five countries in the Americas with double-digit growth.

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"One of the reasons the industry is growing so rapidly is that joint ventures between airlines are creating additional growth opportunities--a trend in the industry," said Jared Harckham, vice president, ICF Aviation Advisory at a panel on airline connectivity at Tianguis Turistico, taking place in Mazatlan, Mexico, April 14-18.

In addition, he noted the potential of worldwide connectivity, something that Mexico can take advantage of.

“Low-cost airlines traveling long-haul and with high-quality service is creating extremely fast growth in the industry and is a worldwide trend,” he said. “This type of airline is also being set up by legacy carriers in many markets and they reach Mexico bringing more tourists.”

Executives also praised the Open Skies Agreement for opening barriers that prevented the building of air connectivity.

"The agreement is bringing many aviation opportunities to Mexico from the U.S. and throughout the world,” said Gerardo Esparza, secretary of communications and transportation. “We are allowing foreign investment into Mexican airlines and this is strengthening the market and allows for greater competitiveness.”

Executives also noted that not only is Mexico’s connectivity growing, but the country is investing in infrastructure as well.

“There’s not just growth but we have the best fleet in the world—we have the 787 and the 777,” said Giancarlo Mulinelli, vice president of sales for Aeromexico. “Now we have the youngest long-haul fleet.”

“The level of competitiveness and the cost of operations, as well as investment in infrastructure, is very important and this will help us continue domestic growth,” said Cuitlahuac Gutierrez, director of IATA Mexico.

Growth is clearly at the forefront of the airline industry and boosting connectivity is seen as key to sustaining that growth. There are concerns that if plans for a new airport in Mexico City are tabled, some of the potential in the industry would dry up.

Recently Andres Manuel Lopez Obrador, who is a presidential candidate in the upcoming Mexico election announced that, if elected, plans for the new airport could be canceled.

Airline executives at Tiaguis, however, are in favor of continuing plans for the new airport and noted that most people in the business industry back the project.

“With more than 39 million travelers coming to Mexico, the new airport could have a big impact on Mexico’s GDP and provide for more than 200,000 jobs,” said Gutierrez. “That will put Mexico in a very different position from where it is today. There are great global implications, and we support the project and making sure that it is achieved.

Enrique de la Madrid, Mexico’s secretary of tourism told attendees that efficiency is key.

“If you fly from New York City to Mazatlan, you have to go through Mexico City, if you have to transfer to another airport or transfers are long, then passengers are going to be going to other u.s. airports rather than our airport in Mexico City. It’s business for Mexico and jobs for Mexicans. The airport must not be an obstacle to growth in our country.”