Mexico Revives Mexicana de Aviación to Lower Fares and Boost Competition

President Claudia Sheinbaum has explained why the Mexican government took control of Mexicana de Aviación and brought it back as a public airline. This move comes after the company went bankrupt years ago due to poor management and corruption.

Sheinbaum said the main goal is to offer affordable flights for everyone, especially to cities where private airlines do not fly or charge very high prices. She pointed out that, in some cases, flying within Mexico can cost as much as flying to Europe.

She believes that having a government airline will create more competition and help lower ticket prices. The government has invested in new planes for Mexicana de Aviación.

The airline is buying 20 modern Embraer jets, with 90% of the money coming from private sources and 10% from the state. The new planes should be delivered between 2025 and 2027.

The airline is also managed by the country’s Defense Ministry, which helps with logistics and keeps things organized. Mexicana de Aviación has struggled financially since its relaunch.

In 2024, the airline lost over 932 million pesos (about $50 million), and its flights were only about 60% full, which is much lower than the national average of 85%. The government has given the airline more than 1.4 billion pesos in subsidies to keep it running.

Mexicana de Aviación Balances Public Service with Profit Pressures

Despite these losses, the government says Mexicana is important for the country. It helps connect remote areas, supports emergency services, and makes sure that flying is not just for people who can afford expensive tickets.

Critics, however, question if the government should keep spending so much money on the airline when private companies run more efficiently.

Sheinbaum argues that bringing back Mexicana de Aviación is not about politics, but about fixing problems in the market and making air travel fairer for all Mexicans. She says the airline will keep working to reach more places and offer better prices, even if it takes time to become profitable.

This story shows how Mexico’s government is trying to balance public service with business realities. The future of Mexicana de Aviación will depend on whether it can improve its finances while still serving the needs of the country.

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