Mexicana’s bankruptcy will bring welcome turbulence to Mexican skies
AFTER 89 years in the skies, North America’s oldest airline seems ready to ditch. Compania Mexicana de Aviacion filed for bankruptcy protection on August 2nd and has been in a tailspin ever since: ticket sales were stopped on August 4th and a third of its routes were suspended a few days later. The airline says it has lost $350m since 2007 and now owes nearly $800m.
These are difficult times for airlines everywhere. But despite the entry of several low-cost carriers since 2005, fares in Mexico have remained old-fashionedly high: an hour’s flight from the capital’s main airport to Guadalajara, Mexico’s second city, cannot be had next month for much less than $175 return. Sao Paulo to Rio, a similar hop, can be done for $100. Partly because of this, middle-class Brazilians fly three times more often than their Mexican counterparts. …
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