| | |  Business News 
Merging Process Between Aeroméxico and Mexicana Soon
 Víctor Mayen - The News
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March 01, 2010
| | Govt won’t interfere with airlines deal . | |
Mexico City – The Federal Government recently stated that it does not encourage the merger of Aeromexico with Mexicana, but they do not oppose it either. The government declared that it would not interfere with the merging process between the airlines.
Humberto Treviño Landois, Transportation Under-Secretary of the Communication and Transportation Secretariat (STC), said during a meeting of the STC that the secretariat is currently implementing actions that intend to strengthen aeronautical policies and maximize the security of passengers.
On this note, he said, “We will allow weaker airlines to suspend their services; it is not about the government rescuing anybody; the problem is that those airlines were unable to make their business successful and stop themselves from going bankrupt.” Additionally, he said that the government is allowing flexible plans to pay for aircraft fuel.
Speaking to deputies of the STC, Treviño said that a merger between Mexicana and Aeromexico would mean that Mexico would have only one strong international airline and that would increase Mexico’s competivity with foreign airlines that currently dominate the national market. Deputies Ifigenia Martínez y Hernández of the PT, Alfredo Javier Rodríguez Dávila of the PAN, Samuel Herrera Chávez of the PRD, Paula Angélica Olmos and José Ramón Martel López of the PRI took part in the meeting.
Deputy Francisco Gil Ortiz of the Institutional Revolutionary Party (PRI) and president of the STC said that his commission will make sure that a merger of these airlines would not affect domestic and smaller airlines.
“What we want, here in the commission, is that this merger not affect the domestic market. In Europe mergers of airlines have been a complete success,” he said.
Furthermore, he said it is reasonable to try to strengthen Mexican airlines on the foreign market, but said that the STC needs to carry out its task responsibly. “And we will do everything possible to ensure that the terms of this merger will not affect domestic airlines.”
Treviño declared that a merger such as this would promote competivity in foreign markets because one international airline would be more efficient and the cost of its services would drop significantly.
“If we follow this strategy we think that as a country we would be able to better compete against foreign airlines, which have efficient and well-thought-out regional strategies which gives them good results,” Treviño said.
He added that a possible merger between these two companies would result in a positive competition among Mexican airlines, as they would all aim to offer better service to national passengers, “We have said that the correct way to compete is by using a new business model, not new rates; intelligent businesses do not compete with rates, they do it with a different business model.”
There are countries that have only one international airline and that has worked for them, he said.
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