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With the emergence of low-cost airlines concept in Mexico, the domestic fares in the country are being tipped to go downwards.

Published: 07 Aug 2005

With the emergence of low-cost airlines concept in Mexico, the domestic fares in the country are being tipped to go downwards.

A Bloomberg report stated: "Mexico's domestic airfares, often more
expensive than international flights, may plunge as much as 50% after
new discount carriers begin flying and the government sells two airlines
to private investors." The government has completed its bidding process
for the nation's two state airlines, Aeromexico and Mexicana.

The report mentioned the plans of Mexican billionaires Carlos Slim and
Emilio Azcarraga to introduce a low-fare domestic startup, bringing to
four the number of such airlines. Mexico is being termed as Latin
America's second-largest aviation market after Brazil, with 20 million
passengers a year.

"Our main objective is to make air travel affordable for the portion of
the population that currently cannot afford to benefit from the
efficiency, comfort and safety of flying," Gilberto Lopez Meyer,
Mexico's civil aviation director reportedly said.

As per the information available, nation's largest airline Aeromexico
charges 5,584 pesos ($526) for a round-trip flight from Mexico City to
the beach resort of Cancun, more than a United Airlines round-trip fare
to Washington D.C., which is $492.72. Elaborating it further, the report
says, "Both fares were for bookings made online for the weekend of Aug.
12 and include taxes. Cancun is 1,300 kilometers (808 miles) from Mexico
City; Washington D.C. is 3,029 kilometers." It also said that a U.S.
tourist could fly to Cancun from Detroit and back for $393.16 on
Miramar, Florida-based Spirit Airlines Inc.

Bloomberg report also quoted Humberto Folegatti, chief executive of
Brazilian carrier BRA Transportes Aereos saying, "If there is a place
that low-cost airlines must exist, it is in Latin America because it's a
poor continent and people can't afford expensive tickets."