Azateca is not a no-frills airline, rather an independent carrier.
VuelaMex was launched with Boeing 717s and good financing however the Mexican government never gave the airline an AOC, without a reason, though many believe it was because the management had come from the recently bankrupted TAESA.
Mexico is definately ripe for a new low cost domestic and transborder airline, although it would have to be with a smaller type like the 717 as I dont know whether the domestic market could support 737-700s but who knows when no-frills airlines enter a market. Who thought that Hurn to Hahn would ever be a route?