03 August 2010

Mexicana And Mexico - A Case For Treatment

Seems that the problems in Mexico are growing rapidly.

Hot on the heels of Mexico being downgraded to a Category 2 country by the FAA, Mexicana pulled the plug on the largest Mexico travel market today - California. The LA Times reported the details.

Mexicana's owners the hotel group Posadas clearly have run out of patience with the reforms they feel are necessary. But that is not the only thing affecting Mexico's largest airline. The on-off again potential marriage with their some time sibling Aeromexico is another issue. But now the big threat is coming from the emergence of Volaris as a strong market force. Volaris is fast growing and resonating with the market. its support from Mexico's richest man - Carlos Slim - is not to be underestimated. Will MX file Chapter 11? this is being discussed in detail between the powers that be.

Mexico of course has been hurt by a number of internal and external factors. The global economy recession hit them hard. But the drug wars and bad publicity have further exacerbated issues for the country the #2 market in Latin America.

Let's hope they can get this sorted quickly.

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