Mexicana Hopes to Win Back Markets in 2005

Mexicana de Aviacion is planning to regain lost ground in 2005 driven by the good shape of the U.S. economy and steadier oil prices in the world market, said Adolfo Crespo, PR chief at the Mexican air company.

The addition of ten new Airbus A318 jetliners to the carrier´s fleet has been done in spite of spiking fuel prices that have been a major snag in the way of most airlines all year long.

Mr. Crespo noted fuel prices are hinting at some serious stability come next year, a situation that will pave the way for a market recovery. "We must bear in mind that civil aviation is directly linked to the good health the world economy," he added. Unfortunately, oil prices have made a dent in the company´s three-quarter figures.

Airfares and passenger volumes have both inched up 4 percent from the year before. "Fares are bouncing back, yet we remain way below the levels we reached in 2001, both in the number of flown passengers and in airfares. Nonetheless, we´ve noticed a rebound of the aviation market," he went on to explain.

The renovation of the company´s fleet started out five years ago when Mexicana began replacing old Boeing 727-200 aircraft for Airbus A319 planes. "Once the renewing process is over, the average age of our entire fleet will be in the neighborhood of six years old," Mr. Crespo indicated.

The new jetliners are being bought under leasing agreements for ten years, a financial move that gives the company plenty of wiggle room for future replacements of worn-out planes.

With the Airbus A318s in the bag, Mexicana is planning to open a new Mexicio-Quito-Guayaquil-Mexico route and rev up flights to Canada´s Montreal to two frequencies a day. The new fleet of Fukker 100 aircraft will be reserved for Aerocaribe´s short-haul operations.