The FAA has reinstated Mexico's Category 1 aviation safety status after a two-year suspension, which Moody’s will benefit Mexican airlines, such as Aeroméxico and Volaris. Meanwhile, the 2024 Federal Expenditure Budget seeks funds to continue payments for the presidential plane sold to Tajikistan.
Are you ready for takeoff? This is the week in aerospace:
After nearly two years of suspension due to failure to meet International Aviation Safety Assessment standards, Mexico's aviation safety rating has been reinstated to Category 1, announced the US Federal Aviation Administration (FAA). With the restoration of Mexico's Category 1 status, Mexican airlines can open new routes to the US, while US airlines are once again permitted to market and sell tickets for flights operated by Mexican carriers under their own names and designated codes.
Following the reinstatement of Mexico’s airspace to Category 1, SICT forecasted the opening of 50 new routes in the short term, benefiting passengers as it will allow more competition and, therefore, better prices. The ministry estimates that this change will bring 1 million more passengers per year.
The reinstatement of Category 1 safety status will yield significant benefits for Mexican airlines, Moody’s reported. According to the report, the Category 1 reinstatement will have a discernible impact on the credit profiles of Mexican airlines. However, the credit ratings provider noted that the reinstatement of Mexico's aviation safety rating to Category 1 is not expected to lead to a significant increase in passenger traffic volumes.
Mexico plans to open over 50 new routes to the US following the recovery of the Category 1 aviation safety status, as reported by the Ministry of Communications and Transportation (SICT). This expansion in air connectivity is set to foster heightened competition and elevate service quality for travelers, resulting in increased route options, flight frequencies and competitive pricing.
The 2024 Federal Expenditure Budget requests funds to continue paying for the presidential airplane sold to Tajikistan. The Mexican government allocated a significant budget in the 2024 Federal Expenditure Budget under Programs and Investment Projects for “the purchase of a presidential aircraft.”
Autonomous solutions are the driving force behind a sustainable future, writes this week for Mexico Business Gerardo Martin, Commercial Director, Hexagon. “We are moving on from Hexagon Mexico to Hexagon LATAM and we have a 2023-2026-2030 vision with the clear objective of becoming the problem solvers for our current, past and future customers” shares Martin.