Mexico to allow foreign airlines to operate domestic routes

Mexico to allow foreign airlines to operate domestic routes
Mexico to allow foreign airlines to operate domestic routes
Written by Harry Johnson

Besides targeting high air travel prices, the president also wants airlines to fly to more destinations within Mexico.

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Mexico’s President Andrés Manuel López Obrador, announced this week that the country’s government will allow foreign airlines to fly domestic routes within Mexico to cut costs of air travel for the passengers.

Mexican law currently prohibits foreign airlines from operating routes between domestic destinations.

The President said that the government could change the law, in order to increase competition on domestic routes to “help control prices,” while wondering why airfare from Mexico City to Hermosillo, Sonora, costs as much as the long-haul international flight from Mexico City to Lisbon, Portugal.

“What would that mean? More competition. What should a government care about? People’s finances. So, we’re going to open up to more competition. That’s democracy. The important thing with democracy is for there to be competition, there shouldn’t be monopolies,” López Obrador said.

The last week of September saw 1.4 million weekly air seats scheduled in the domestic market as per OAG schedules and 97% of that was in the hands of three carriers – with Mexico City featuring in 13 of the top 20 routes.

Besides targeting high air travel prices, the president also wants airlines to fly to more destinations within Mexico.

“There are many destinations that can’t be reached by airplane because they are not served by the current airlines. There also are cities that had air service before but now there is none,” the president added.

Mexico‘s government is also mulling the idea of creating a state-owned commercial airline to be operated by the army.

International airline sector experts welcomed the news of Mexico opening up to competition as positive for both consumers and the industry.

Competition lowers prices, shakes up monopoly or duopoly on routes, and generally improves service levels and punctuality.

Industry experts expect the likes of Spirit Airlines, Jet Blue Airlines and Southwest Airlines to further develop their footprint in Mexico and forecast that this extra capacity would create more connectivity opportunities to/from Mexico by connecting secondary cities in Mexico to the rest of the world – good news for Mexican travelers, those wishing to visit Mexico, and Mexico’s general tourism economy.  

About the author

Harry Johnson

Harry Johnson has been the assignment editor for eTurboNews for mroe than 20 years. He lives in Honolulu, Hawaii, and is originally from Europe. He enjoys writing and covering the news.

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