Mexican Low-Cost Airline to Go Public, IATA Forecasts RecoveryBy Jorge Ramos Zwanziger | Thu, 07/01/2021 - 16:30
This week, Mexico’s Federal government announced the seizure of private land under eminent domain, a local ultra-low-cost airline might go public in the US market after a successful start of the year and IATA forecasted the recovery of the aerospace industry.
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According to the Official Gazette of the Federation, around 109 hectares of privately owned land will be seized under eminent domain for the construction of the General Airport Felipe Ángeles in Santa Lucía, State of Mexico. The procedure follows Article 27 of the Mexican Constitution, which states “that the property of the lands and waters included within the limits of the national territory belonged originally to the Nation, which has the right to impose on private property the modalities dictated by the public interest to meet the needs that must be satisfied as a priority for social benefit.” The private parties involved will be financially compensated by Mexico’s Army, SEDENA. This is not the first time the Mexican government has seized land for the construction of Felipe Angeles International Airport; earlier this year, the government seized 11 hectares under eminent domain. Read more here!
Mexico’s international passenger traffic will not recover to its pre-pandemic levels until 2025, said Cuitláhuac Gutiérrez, Country Manager Mexico at the International Air Transport Association (IATA) and Director General of CANAERO. When looking at data from different airlines, Mexico’s numbers are getting better, national traffic is almost at the capacity of 2019 and international demand keeps increasing, although there is still more to be done. IATA Executives believe the industry will start to recover in Mexico by late 2024 and early 2025. Read why here!
Despite the pandemic, Mexican airlines Volaris and Viva Aerobus have had reported good numbers during recent months, with Viva Aerobus reaching its best month in history. Viva Aerobus is now planning a public offering in the US and has started working with Barclays, Goldman Sachs Group and JPMorgan Chase. The airline is expecting a considerable increase in ticket sales from the US. Read more here!