Subject category:
Economics, Politics and Business Environment
Published by:
IBS Case Development Center
Length: 8 pages
Data source: Published sources
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https://casecent.re/p/64521
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Abstract
Mexico''s flagship air carriers are Mexicana and Aeromexico. Though the two airlines controlled 80% of the Mexican market, since 2000 due to the high prices they charged, they started losing market share to other domestic airlines and US airlines. In addition, many US low cost carriers entered the Mexican aviation market and popularised the concept of low cost air travel, which resulted in the rise in air passenger traffic in Mexico. To benefit from this growth, several new companies and existing Mexican airlines, including Mexicana started their own low cost airlines. However owing to some concerns analysts are divided on the prospects of low cost carriers in Mexico. This case provides insights into the evolution of the Mexican airline industry over the decades, and the growth of low-cost carriers in the country. The case offers scope for discussion on the growth prospects and concerns for the low cost airlines in Mexico.
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Abstract
Mexico''s flagship air carriers are Mexicana and Aeromexico. Though the two airlines controlled 80% of the Mexican market, since 2000 due to the high prices they charged, they started losing market share to other domestic airlines and US airlines. In addition, many US low cost carriers entered the Mexican aviation market and popularised the concept of low cost air travel, which resulted in the rise in air passenger traffic in Mexico. To benefit from this growth, several new companies and existing Mexican airlines, including Mexicana started their own low cost airlines. However owing to some concerns analysts are divided on the prospects of low cost carriers in Mexico. This case provides insights into the evolution of the Mexican airline industry over the decades, and the growth of low-cost carriers in the country. The case offers scope for discussion on the growth prospects and concerns for the low cost airlines in Mexico.