The recent purchase of Mexicana de Aviacion by the Mexican federal government has sparked both excitement and concern within the aviation industry and among the public.
With the intention of reviving the once-iconic airline, the government’s decision to re-launch Mexicana de Aviacion under state ownership raises important questions about its feasibility, economic viability, and potential impact on the aviation sector.
A Brief History of Mexicana de Aviacion
Mexicana de Aviacion holds a significant place in Mexican aviation history, with a rich legacy dating back to 1921. As one of the oldest airlines in the world and a prominent carrier in Mexico, it played a vital role in connecting people and fostering economic growth. However, the company’s financial struggles led to its bankruptcy filing in 2010, resulting in the cessation of all operations. The airline’s demise marked a significant loss for both the Mexican aviation industry and travelers.
The Government’s Purchase and Plans
In January 2023, the Mexican federal government made the decision to acquire Mexicana de Aviación’s brand and majority shares. The responsibility of managing the re-launched airline has been entrusted to SEDENA, the Mexican Ministry of Defense. Reports suggest that the army will operate the airline, with a fleet of 10 aircraft. The government’s acquisition of Mexicana’s assets came at a cost of $816,786,000 Mexican pesos, equivalent to approximately $45 million Dollars.
Assessing the Decision
The government’s decision to revive Mexicana de Aviacion raises several critical considerations. Firstly, there is a need to evaluate the economic feasibility of re-establishing a state-owned airline in an industry known for its competitiveness and financial challenges. Mexicana’s previous financial difficulties, which ultimately led to its bankruptcy, underscore the challenges of sustaining a profitable airline in a dynamic and evolving market.
Furthermore, the decision to entrust the management of the airline to SEDENA raises questions about the institution’s expertise and experience in operating a commercial aviation venture. While the military may possess operational capabilities, successfully managing an airline requires specialized knowledge of the aviation industry, including commercial aspects, customer service, and route development.
Another aspect that warrants scrutiny is the timing and strategic rationale behind the acquisition. The aviation industry has faced unprecedented challenges in recent years, particularly with the ongoing COVID-19 pandemic. The effects of the pandemic on travel demand, coupled with the emergence of low-cost carriers and changing consumer preferences, necessitate a careful evaluation of the viability of a state-owned airline.
The purchase of Mexicana de Aviacion by the Mexican government presents both potential opportunities and risks. While the revival of a national airline may evoke sentiments of national pride and provide job opportunities, it is crucial to critically assess the decision’s economic viability, long-term sustainability, and alignment with market dynamics. The government should carefully consider the challenges faced by the aviation industry, the need for specialized expertise, and the potential financial implications of operating a state-owned airline. Only through rigorous analysis and strategic planning can the government ensure that the re-launched Mexicana de Aviacion achieves its intended objectives while contributing positively to the overall aviation sector in Mexico.
