Star Alliance may remove Mexicana

[Panama Jack]

Star Alliance May Remove Mexicana After Break With United Air (http://quote.bloomberg.com/apps/news?pid=10000086&sid=afmA8u9N3c0M&refer=latin_america)


Nov. 8 (Bloomberg) -- The Star Alliance will discuss removing Mexicana de Aviacion SA after Mexico's biggest international carrier yesterday ended a code-sharing agreement with United Airlines Inc.

The members of the alliance, which include United, Deutsche Lufthansa AG and Singapore Airlines Ltd., may end Mexicana's agreement at a meeting in Frankfurt on Nov. 13, the alliance said in a statement distributed by PR Newswire. The Star Alliance, the world's biggest airline grouping, has 15 members that have agreed to unify ticketing and scheduling.

Removal from the Star Alliance would be a further blow to Mexico's efforts to sell state-owned Mexicana and its sister airline AeroMexico SA. Both carriers are controlled by state holding company Cintra SA, which lost 3 billion pesos ($269 million) in 2001 and 2002 combined, according to Bloomberg data.

Mexico's finance ministry hired Merrill Lynch & Co. in May 2002 to try for the second time to sell the two airlines, after the investment bank failed to find a buyer the previous year.


What I can't figure out-- why would Mexicana do such a boneheaded thing? Any insight??? :confused:

[Squawk7777]

Panama Jack

I ask this myself... I had actually posted it in Rumour & News but it got moved to a rather quiet forum (http://www.pprune.org/forums/showthread.php?s=&threadid=108272) .

Mexican (airline) politics can be bizzare at times. Officially MXA lays off many pilots (many of them former students of mine, too!) and cries about losses, but in one or two months they'll launch a charter 767 service to Latin America and Europe. Additionally, they boast of having the newest fleet, and are planning to phase out the F100 fleet starting next year and replace them with A319s. The "lucky" pilots that still got a job with MXA spread the rumour that Carlos Slim (Spelling?) - the owner of Telmex - secretly bought MXA :rolleyes: :confused: It may make sense because I noticed a lot of Telmex commercials on TV linked with MXA.

The biggest joke about Mexican airline politics was the suspention of Aerolineas Internacionales' operating certificate... but that is just another (sad) story from the people of the sun.

7 7 7 7

[Panama Jack]

Mexico City, November 13, 2003.- All members of the Star Alliance in a meeting of its Alliance Management Board have today mutually agreed that Mexicana Airlines' membership will end March 31, 2004.

Link to Mexicana's Website (http://www.mexicana.com/g4mx/public/templates/Main/0,3292,,00.html?templateLink=|g4mx|public|news|NewsDetailF.j sp&newsId=1129253&sectionLabel=null&sectionKey=g4mx.corporate.news)


I am still really baffled on what transpired or why Mexicana would do this. It seems like self defeating move unless Mexicana didn't really see many passengers being fed to it. :confused:

I am also wondering whether another airline will take Mexicana's place as a Star Alliance carrier in that region. Now all that will be left in Latin America is Varig, and they have disimilar routes. Personally, I would like to see Grupo TACA become a Star Alliance carrier in the region.

[Squawk7777]

Here's another link (http://www.atwonline.com/indexfull.cfm?newsid=3627)

I am puzzled by MXA's statement "due to evolving business trends in the Mexican aviation industry". :confused:

7 7 7 7

[Squawk7777]

Star Alliance and Mexicana Airlines, as expected, formally agreed at an alliance management board meeting in Frankfurt to terminate their relationship March 31 (ATWOnline, Nov. 11). According to a joint announcement released in Frankfurt Friday, both Mexicana and other alliance members "express their commitment to maintain the current Star Alliance product, including frequent-flier and lounge access benefits," until the March 31 cutoff date. Mexicana's seven-year-long codeshare accord with United will expire Dec. 31. "We now have the freedom to look for the best option," Mexicana spokesperson Adolfo Crespo told Dow Jones. "A lot of companies have approached us, so we'll look for the best choice to increase our destinations."

[Squawk7777]

The main reason for the split seems to have been major disagreements between UAL and MXA regarding routes. It seems that MXA may team up with AA & co.

It is also noteworthy that MXA has been sold to Slim and Salinas (the former president of Mexico and part owner of TAESA) and a third individual. Aeromexico seems to get nervous now since they have not been able to find a buyer.

[Panama Jack]

Any idea whether Star Alliance will find a suitable partner to replace Mexicana? Despite their assurances to the contrary, I find that Latin America will be underserved by Star Alliance after Mexicana's departure.

Personally, I would like to see Grupo TACA become a Star Alliance carrier-- they have a good coverage over the region, both in Central and South America and to Cuba.

In any case, looks like I goofed on becoming a Frecuenta member. Now looking to what Star Alliance airline I should become a frequent flyer program member with.

[m_v_s_86]

I have heard some rumors that Mexicana went out of Star Alliance because it will become part of the One World alliance witn American Airlines. For me, it is better to be "friend" of the biggest and best airline in earth.
What do you think guys, what have you heard about??????

[Panama Jack]

Biggest Airline, maybe, but the Best airline on earth? :confused: :yuk:

I try to avoid AA and most US airlines these days-- Continental probably being one of the better of the majors. I'm just making travel reservations again and dreading the thought of flying on AA :bored: . I guess you can say I am not a "friend" of AA even though I've been a long-time AAdvantage member.

But none of this has anything to do with being with the "biggest," "best" or "most prestigious". If Mexicana figures they can make a dollar more by aligning with One World, then of course there is the business motivation.

[Squawk7777]

I have heard some rumors that Mexicana went out of Star Alliance because it will become part of the One World alliance witn American Airlines.

That doesn`t make sense to me. IF Mexicana quit the Star Alliance because of disagreements with UAL over routes, why change to One World and AA?

On another note I thought Aeromexico was planning to join One World ...

Panama Jack hit the nail on the head, if the figures make sense then ... :confused: